PUBLISHER: The Business Research Company | PRODUCT CODE: 1392821
PUBLISHER: The Business Research Company | PRODUCT CODE: 1392821
“Peer-to-Peer (P2P) Lending Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on peer-to-peer (p2p) lending market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for peer-to-peer (p2p) lending? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The peer-to-peer (p2p) lending market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Peer-to-peer lending (P2P) is a lending method in which money is directly lent to individuals or businesses without the involvement of traditional financial institutions as intermediaries. P2P lending typically occurs through online platforms that connect potential borrowers with lenders. This approach facilitates a direct connection between investors seeking higher returns on their investments and verified borrowers in search of unsecured personal loans.
The main types of loans in peer-to-peer (P2P) lending encompass consumer credit loans, small business loans, student loans, and real estate loans. The traditional lending model refers to a conventional method of conducting transactions for the purchase or sale of goods and services directly between individuals, without utilizing the internet. It represents an older business style characterized by direct interaction between sellers and buyers, conducted through face-to-face communication, telephone lines, or mail systems. There are two primary business models in this context including traditional lending and alternate marketplace lending, both serving end-users such as businesses and individuals.
The peer to peer (P2P) lending market research report is one of a series of new reports from The Business Research Company that provides peer to peer (P2P) lending market statistics, including peer to peer (P2P) lending industry global market size, regional shares, competitors with a peer to peer (P2P) lending market share, detailed peer to peer (P2P) lending market segments, market trends and opportunities, and any further data you may need to thrive in the peer to peer (P2P) lending industry. This peer to peer (P2P) lending market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The peer-to-peer (p2p) lending market size has grown exponentially in recent years. It will grow from $143. 54 billion in 2023 to $190. 22 billion in 2024 at a compound annual growth rate (CAGR) of 32. 5%. The growth observed in the historic period can be attributed to factors such as market disruption, regulatory changes, investor appetite, and global economic conditions.
The peer-to-peer (p2p) lending market size is expected to see exponential growth in the next few years. It will grow to $559. 73 billion in 2028 at a compound annual growth rate (CAGR) of 31. 0%. The anticipated growth in the forecast period can be attributed to a maturing regulatory environment and innovations in risk management. Major trends expected in the forecast period include the diversification of offerings, partnerships with traditional institutions, global expansion, and advancements in technology within the peer-to-peer lending industry.
The anticipated surge in digitization within the banking industry is poised to drive the growth of the peer-to-peer (P2P) lending market. Digital innovations in financial services, including mobile money and P2P lending, are reshaping the banking landscape. As reported by the European Banking Supervision in January 2022, the number of digital users has experienced a 23% increase since the onset of the pandemic, emphasizing the significant role of increasing digitization in fostering the growth of the P2P lending market.
The provision of low-interest rates by P2P lending platforms is expected to be a driving force behind the market's growth. The appeal of low-interest rates in P2P lending makes loans more attractive to borrowers, expands the customer base, attracts institutional investors, enhances risk assessment, and bolsters platform reputation. Notably, the competitive advantage created by these rates may lead to regulatory support, fostering a conducive environment for P2P lending platforms. For example, ET Money reported in October 2022 that P2P lenders offer annual interest rates ranging from 10% to 12%, outpacing traditional banks, where interest rates on 1-year fixed deposits typically hover around 7%. Consequently, the low-interest rates offered by P2P lending platforms are instrumental in propelling the growth of the P2P lending market.
A key trend gaining traction in the peer-to-peer lending market is the emergence of decentralized P2P mobile browsers. Major players in the market are increasingly adopting decentralized P2P mobile browsers to expand their market share. An illustrative example is the launch of CENO by eQualitie in March 2022. CENO, recognized as the world's first decentralized P2P mobile browser, is designed to circumvent contemporary censorship techniques and ensure access in areas facing connectivity disruptions. Operating on a peer-to-peer network and utilizing open-source Ouinet library and BitTorrent protocols, CENO provides a more reliable browsing experience that prevents external entities from forcibly deleting online content through decentralized peer-to-peer routing.
Major companies operating in the P2P lending market are actively developing new lending solutions to gain a competitive edge. Innovative lending solutions in the P2P lending sector refer to technology-driven approaches that enhance efficiency, accessibility, and risk management within a decentralized, peer-to-peer platform. An instance is the introduction of CRED Mint by CRED in August 2021. CRED, recognized for incentivizing users for timely credit card bill payments, introduced CRED Mint, allowing its 7. 5 million members to engage in P2P lending with an annual interest rate of up to 9%. This initiative aims to provide members with the opportunity to invest directly in each other, emphasizing high-quality, low-risk lending with the potential for returns that outpace inflation.
In January 2022, VERIFONE SYSTEMS, INC., a US-based FinTech company, forged a strategic partnership with Affirm Holdings, Inc., introducing Affirm's transparent and flexible payment options on Verifone's eCommerce and card-present payment solutions. This collaboration enables merchants to offer customers the flexibility of making payments at their own pace, including options like biweekly and monthly payments with interest rates as low as 0% APR. The partnership positions Verifone to stay abreast of market trends, cater to evolving payment needs, and broaden its range of offerings, including peer-to-peer lending, to foster growth for its merchants. Affirm Holdings, Inc. is a US-based financial services company.
Major companies operating in the in the peer-to-peer (p2p) lending market report are Avant LLC., Funding Circle, Kabbage Inc., Lending Club Corporation, LendingTree LLC, OnDeck Capital Inc., Prosper Funding LLC, CircleBack Lending Inc., Social Finance Inc., Zopa Bank Limited, Upstart Network Inc., Commonbond Inc., Retail Money Market Ltd., Peerform, RateSetter, Max Crowdfund B. V., PYT FUNDS Inc., Rendity GmbH, ThinCats Limited, MoneyThing Capital Limited, ArchOver Limited, Landbay Partners Limited, Crowdstacker Holdings Ltd, Rebuilding Society. com Ltd., Assetz Capital Limited, Folk2Folk Limited, PeerStreet, 'EstateGuru. Co., Grupeer Ltd., Mintos marketplace AS
North America was the largest region in the peer to peer (P2P) lending market in 2023. Aisa-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the peer-to-peer (p2p) lending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the peer-to-peer (p2p) lending market report are: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.
The peer-to-peer lending (P2P) market includes revenues earned by secured and unsecured loans. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.