Peer to peer lending has emerged at a time when the conventional financial system is undergoing a crisis across the world. One may call it a variant of crowdsourcing, P2P services are increasingly becoming popular in all countries where they have been introduced. Here are some reasons for its popularity and why you should also consider it:

In the US and UK, a recent popular trend is paying credit card dues via P2P borrowing. It may seem a bit odd for starters, as credit cards with their different offers seem to be the most lucrative credit offering. But swapping it to P2P makes lot of economic sense.

Any kind of a organized financial model of borrowing and lending essentially has to keep three factors in mind; (i) efficient but low-cost running of the institution, (ii) a healthy balance of depositors and borrowers with lower chances of maturity mismatch and (iii) addressing the issues of faith (perceptions of risk, trust, timely repayment etc) of the targeted clientele to ensure steady business over time.