Online Alternative Finance Market Report 2025

The online alternative finance market size has grown exponentially in recent years. It will grow from $15.56 billion in 2024 to $18.94 billion in 2025 at a compound annual growth rate (CAGR) of 21.8%. The growth in the historic period was driven by an increase in global fintech investments, the rise of social media-driven investor campaigns, the emergence of tokenized assets, the expansion of hybrid financing models, and the development of online investment platforms for real estate.

The online alternative finance market size is expected to see exponential growth in the next few years. It will grow to $41.12 billion in 2029 at a compound annual growth rate (CAGR) of 21.4%. In the forecast period, growth is expected to be fueled by rising financial literacy, greater investments in digital infrastructure, increasing smartphone penetration, growing demand from small and medium enterprises, and expanded access to online financial services. Key trends anticipated include technological advancements, innovations in blockchain, and the growing adoption of digital technologies, artificial intelligence, and machine learning.

The growing penetration of smartphones is expected to drive the expansion of the online alternative finance market. A smartphone is a handheld electronic device that combines mobile communication, internet connectivity, and computing capabilities, enabling users to call, browse the internet, and run various applications. Smartphone adoption is increasing due to the greater affordability of devices, making advanced mobile technology accessible to a wider population. This widespread access supports online alternative finance by enabling users to conveniently engage in financial activities - such as applying for loans, making investments, and conducting transactions - via mobile apps from any location. For example, in February 2023, Uswitch Limited, a UK-based provider of online and telephone comparison services, reported that there were 71.8 million active mobile connections in 2022, marking a 3.8% increase from 2021. Furthermore, by 2025, the UK population is projected to reach 68.3 million, with 95% expected to own smartphones. This trend is fueling growth in the online alternative finance market.

Companies in the online alternative finance market are increasingly developing advanced solutions, such as digital investment platforms, to improve the accessibility, speed, and efficiency of financial services for underserved individuals and businesses. Digital investment platforms are online tools that allow users to invest in assets such as stocks, bonds, or mutual funds through websites or mobile applications. For instance, in April 2025, Keyaki Capital, a Japan-based alternative investment solutions provider, launched the Online Private Asset Investment Platform, giving high-net-worth individuals digital access to private equity, private credit, and other private investment funds. This initiative represents a significant step in making institutional-grade private market investments more accessible in Japan, where such opportunities were previously difficult to obtain. Registered under Japan’s Financial Instruments and Exchange Act, the platform prioritizes transparency, investor protection, and ease of access. At launch, it featured a Private Credit Fund and the Marina Investment Fund, with future plans to expand into venture capital, real estate, and other private capital strategies. Through this technology-driven solution, Keyaki Capital is reshaping the private investment landscape in Japan.

In March 2024, Levenue B.V., a Netherlands-based revenue-based financing solutions company, acquired MidFunder for an undisclosed amount. This acquisition supports Levenue B.V.’s expansion into the Swiss market by leveraging MidFunder’s local expertise, established client network, and automated underwriting technology. The move enables the delivery of faster, non-dilutive revenue-based financing solutions tailored to Swiss digital businesses, ensuring regulatory compliance while improving operational efficiency. MidFunder is a Switzerland-based provider of online alternative finance solutions.

Major players in the online alternative finance market are PayPal Holdings Inc., Debitum Investments, Social Finance Inc., Upstart Holdings Inc., BlueVine Capital Inc., Kabbage Inc., Funding Circle Holdings plc, Landbay Partners Limited, Mintos, OurCrowd Ltd., Indiegogo Inc., Bondora Go & Grow, Kickstarter PBC, Assetz Capital Limited, Kiva Microfunds, Viainvest, LendingClub Corporation, Prosper Marketplace Inc., Monetfit Smartsaver, and Peerform.

North America was the largest region in the online alternative finance market in 2024. The regions covered in online alternative finance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the online alternative finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Online alternative finance refers to financial activities carried out through digital platforms that function outside the framework of traditional financial institutions. It uses internet-based systems to facilitate funding and investment, offering a structure distinct from conventional banking and capital markets. This model typically promotes more direct interaction between funders and recipients, aiming to expand access to finance, increase efficiency, and drive financial innovation through digital solutions.

The key types of online alternative finance include peer-to-peer lending, crowdfunding, invoice trading, and others. Peer-to-peer lending is a digital model where individuals lend money directly to borrowers via online platforms, eliminating the need for a traditional financial intermediary. These services are delivered through various channels such as web-based platforms, mobile applications, blockchain-based platforms, bank-affiliated platforms, and third-party aggregator platforms, catering to a diverse range of end-users including individuals and businesses.

The online alternative finance market research report is one of a series of new reports that provides online alternative finance market statistics, including online alternative finance industry global market size, regional shares, competitors with an online alternative finance market share, detailed online alternative finance market segments, market trends and opportunities, and any further data you may need to thrive in the online alternative finance industry. This online alternative finance 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 online alternative finance market includes revenues earned by entities by providing services such as debt-based securities, revenue-based financing, and cryptocurrency-based lending. 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.

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