Global Peer to Peer Lending Market to Expand at 21.3% CAGR by 2031 Amid Rising Demand for Alternative Financing
Peer-to-peer (P2P) lending is an innovative financial model that directly connects individual borrowers with lenders through digital platforms, eliminating the involvement of traditional banks and financial institutions. By leveraging technology-driven platforms, P2P lending offers borrowers access to credit at competitive interest rates while providing lenders with attractive investment opportunities. Peer-to-Peer Lending Market Dynamics and Developments According to market estimates, the Peer To Peer Lending Market is projected to grow at a robust CAGR of 21.3% from 2025 to 2031 . This strong growth is largely driven by rapid advancements in data analytics, artificial intelligence (AI), and machine learning technologies. These innovations allow P2P platforms to evaluate borrower creditworthiness more effectively, improve risk assessment models, and reduce default rates. Additionally, the adoption of blockchain technology is gaining traction, as it enhances transactio...