Debt Based Peer-to-Peer (P2P) Crowdfunding Market Report 2025

The debt-based peer-to-peer (P2P) crowdfunding market size has grown rapidly in recent years. It will grow from $4.63 billion in 2024 to $5.43 billion in 2025 at a compound annual growth rate (CAGR) of 17.3%. During the historic period, growth was driven by increasing fintech adoption, rising demand for alternative financing, growing investor interest in higher yields, expanding internet penetration, and mounting dissatisfaction with traditional banking services.

The debt-based peer-to-peer (P2P) crowdfunding market size is expected to see rapid growth in the next few years. It will grow to $10.14 billion in 2029 at a compound annual growth rate (CAGR) of 16.9%. In the forecast period, growth is expected to be fueled by the increasing adoption of open banking APIs, rising demand for financing solutions for small and medium-sized enterprises (SMEs), the expansion of mobile-first lending platforms, the growth of environmental, social, and governance (ESG)-focused lending products, and increasing institutional investor participation in P2P markets. Key trends anticipated for the forecast period include advancements in AI-powered risk assessment, the development of blockchain-based loan management systems, innovations in alternative credit scoring models, wider adoption of blockchain technology, and the integration of regulatory technology.

The increasing fintech activities are expected to drive the growth of the debt-based peer-to-peer (P2P) crowdfunding market going forward. Fintech activities refer to technology-driven financial services, such as digital payments, online lending, robo-advisory, and crowdfunding, designed to improve efficiency, accessibility, and user experience in finance. These activities are rising due to the growing demand for faster and more accessible financial services, as consumers and businesses look for alternatives to traditional banking systems. Debt-based P2P crowdfunding platforms contribute to fintech growth by enabling direct digital lending between individuals, bypassing traditional banks. They provide accessible credit to borrowers and higher returns to investors, fostering financial inclusion and innovation in the financial ecosystem. For example, in November 2023, according to the International Trade Administration (ITA), a U.S.-based government agency, the FinTech sector in the UK included over 1,600 firms and is projected to double by 2030. Therefore, increasing fintech activities are fueling the growth of the debt-based P2P crowdfunding market.

The rapid growth of start-ups is anticipated to drive the expansion of the debt-based peer-to-peer (P2P) crowdfunding market. Start-ups are newly established businesses, typically in the early stages of development, that aim to introduce innovative products or services to the market. Their growth is fueled by improved access to digital technology, enabling entrepreneurs to launch and scale operations cost-effectively through affordable internet, cloud services, and online platforms without significant infrastructure investments. Debt-based P2P crowdfunding facilitates start-up growth by providing quick and accessible funding without the need to rely on traditional banks. This allows entrepreneurs to secure capital efficiently, fostering innovation and accelerating business development during the early stages. For instance, in February 2025, the NatWest Group, a UK-based insurance company, reported that the UK had 5.63 million active companies registered with Companies House in 2024, marking a 3% increase compared to 2023. Therefore, the rapid expansion of start-ups is contributing to the growth of the debt-based P2P crowdfunding market.

Major companies in the debt-based peer-to-peer (P2P) crowdfunding market are focusing on developing innovative offerings, such as term-based peer-to-peer plans, to enhance investment flexibility, attract a broader investor base, and optimize repayment structures for borrowers. A term-based peer-to-peer plan refers to a lending arrangement where investors provide funds to borrowers for a fixed duration, with predefined interest rates and repayment schedules. For instance, in July 2022, LenDenClub, an India-based P2P lending platform, introduced the Fixed Maturity Peer-to-Peer Plan (FMPP), a term-based investment product. This plan allows investors to choose from various tenure options, offering predictable returns while mitigating risks through diversified loan portfolios. The platform uses advanced risk assessment algorithms to match lenders with creditworthy borrowers, optimizing returns while maintaining security. The fixed-maturity structure provides investors with clarity on investment duration and expected yields, making it appealing to those seeking stable, short-to-medium-term returns.

Major players in the debt based peer-to-peer (P2P) crowdfunding market are LendingClub Corporation, Upstart Network Inc., Funding Circle Holdings plc, Zopa Bank Limited, Mintos Marketplace AS, LenDenClub, Peerform Inc., LendInvest Limited, Faircent Tech Private Limited, Assetz Capital Limited, Bondora Capital OÜ, Twino LLC, Rebuilding Society Limited, KILDE PTE. LTD., Viainvest SIA, Folk2Folk Limited, Prosper Marketplace Inc., i2iFunding, IndiaP2P, and Crowd2Fund Limited.

North America was the largest region in the debt based peer-to-peer (P2P) crowdfunding market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in debt-based peer-to-peer (P2P) crowdfunding report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the debt-based peer-to-peer (P2P) crowdfunding 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.

Debt-based peer-to-peer (P2P) crowdfunding is a digital lending model that directly links individual or institutional investors with borrowers via online platforms, eliminating the need for traditional financial intermediaries. These solutions enable borrowers to access loans while allowing investors to earn returns through interest payments.

The primary types of debt-based P2P crowdfunding are online and offline. Online debt-based P2P crowdfunding is a digital financing approach where individuals lend money to borrowers through online platforms, earning interest over time without involving conventional financial institutions. These platforms cater to various lending categories, including consumer lending, business lending, and real estate lending. Applications include individuals, businesses, and others, with the main end-users being individuals, small and medium enterprises, and large enterprises.

The debt-based peer-to-peer (P2P) crowdfunding market research report is one of a series of new reports that provides debt based peer-to-peer (P2P) crowdfunding market statistics, including the debt based peer-to-peer (P2P) crowdfunding industry global market size, regional shares, competitors with the debt based peer-to-peer (P2P) crowdfunding market share, detailed debt based peer-to-peer (P2P) crowdfunding market segments, market trends, and opportunities, and any further data you may need to thrive in the debt based peer-to-peer (P2P) crowdfunding industry. This debt based peer-to-peer (P2P) crowdfunding market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The debt-based peer-to-peer (P2P) crowdfunding market includes revenues earned by entities through facilitating digital lending transactions, offering risk assessment and credit scoring services, managing loan disbursement, enabling investor-borrower matching and related automated repayment processing, fraud detection mechanisms, customer onboarding services, investor portfolio management, and platform scalability and integration support. 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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