The New Era of Peer-to-Peer Lending
- MD Finance Team
- May 16
- 3 min read
Peer-to-peer (P2P) lending has redefined how people and businesses access capital, bypassing traditional financial intermediaries. Platforms like Zopa in the UK and Prosper in the US introduced a radically simple concept in the early 2000s: connecting borrowers and lenders directly online. Today, that model has matured into a global market with billions in investment volume.
Our latest report explores how P2P platforms work, what drives the market forward, and what milestones have shaped the industry in recent years.
How P2P platforms work and generate revenue
At first glance, P2P platforms operate like marketplaces. Lending companies list loan offerings for consumer financing, real estate projects, or SME working capital.Investors browse available opportunities, choose where to allocate their funds, and earn interest as the borrower repays.
Revenue streams vary by platform:
Investor fees for withdrawals, account management, or service subscriptions;
Loan originator fees for accessing investor capital;
Interest spreads, where the platform retains a share of the borrower's interest;
Premium services, such as advanced analytics or auto-invest tools.
Most platforms operate in partnership with lending companies, which bring in borrowers and manage credit risk. The platform provides access to investor capital and the infrastructure to scale.
Market overview
The global P2P lending market is projected to grow at a CAGR of 14.37%, reaching $238 billion by 2030. Growth is fueled by:
Increasing digitization of financial services.
Demand for fast and alternative lending options.
Frustrations with traditional banks’ slow and layered approval processes.
Rising awareness and trust in fintech platforms.
Still, the market faces several challenges. Credit risk remains a primary concern, especially on platforms with low borrower transparency. Regulatory pressure as well as mismanagement also led to the collapse of some P2P players like Grupeer or Viventor.
P2P platform growth is uneven across regions. According to P2P Market Data, the US leads by number of active platforms (58), followed by France (57) and Italy (35). The Baltic region stands out in Europe, with high platform density in Estonia, Latvia, and Lithuania, where digital adoption and favourable regulation support rapid development.
Recent developments and funding milestones
2024-2025 has been a fruitful period for P2P lending, with several platforms reaching major investment milestones, indicating strong investor confidence. Top platforms by cumulative investments as of early 2025 include Mintos (Latvia) with €11.4B, PeerBerry (Croatia) with €3.0B, Swaper, Robocash, and Esketit – each nearing or surpassing €1B.
On the regulatory side, platforms like Mintos, Twino, and VIAINVEST secured licenses under the EU’s new European Crowdfunding Service Provider (ECSP) regime. By the end of 2023, 59 European platforms had been authorized, marking the shift toward a more structured and compliant market. Many platforms restructured their offerings, launched new licensed entities like Crowdpear by PeerBerry and introduced regulated products to meet higher transparency and investor protection standards.
To stay competitive, leading platforms diversified their assets. Real estate lending gained traction through players like Twino, PeerBerry, and Estateguru. Meanwhile, Mintos bridged the gap between P2P and capital markets by offering fractional corporate bonds—and hinted at expanding into stocks and ETFs.
P2P lending presents growing opportunities for both fintechs and investors. As regulation evolves and platforms increasingly integrate AI for credit scoring, fraud detection, and risk modelling, the market is becoming more resilient.
Still, challenges remain. To sustain growth and investor trust, platforms must strengthen governance and borrower screening, improve secondary market liquidity, and invest in educating both borrowers and retail investors.
Read the full report to learn more about the key market players, their funding and upcoming trends.
