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P2P
(Peer-to-Peer)
P2P refers to direct financial transactions between individuals without traditional institutional intermediaries. In finance, P2P encompasses lending platforms (like LendingClub), payment systems (Venmo), and even cryptocurrency networks like BTC.
The global P2P lending market alone is projected to reach $1 trillion by 2030, offering borrowers lower rates and investors higher yields by cutting out banks. P2P systems rely on digital platforms to match parties, assess credit risk (often using alternative data), and facilitate transactions. While offering financial inclusion benefits, P2P models carry unique risks around fraud, platform stability, and regulatory compliance that users should carefully evaluate.
The global P2P lending market alone is projected to reach $1 trillion by 2030, offering borrowers lower rates and investors higher yields by cutting out banks. P2P systems rely on digital platforms to match parties, assess credit risk (often using alternative data), and facilitate transactions. While offering financial inclusion benefits, P2P models carry unique risks around fraud, platform stability, and regulatory compliance that users should carefully evaluate.