Have you heard of peer-to-peer lending? Many financial gurus regard it as a burgeoning industry. They feel it will only gain more traction in the months and years to come.

We'll take a few moments right now to talk about the peer-to-peer lending market. We'll discuss what it is and also why it's becoming more prominent as we progress further into the 21st century.

What is Peer-to-Peer Lending?

Peer-to-peer lending is a new form of financial technology. The basic concept is that individuals can borrow or lend money without going through a conventional lender, like a credit union or bank.

Most people seek peer-to-peer loans through a website or app that allows them to lend or borrow money. The site or app sets up the rules that borrowers and lenders must follow.

Now, let's discuss why financial experts feel this market should continue growing.

1. Portable Devices

Earlier, we mentioned how you can use either an app or website if you'd like to lend or borrow money through the peer-to-peer system. Most people have smartphones now. Anyone who does can easily set up an account with one of these new peer-to-peer lending sites or apps.

Installing one of these apps on your smartphone, such as Payoff, Upstart, or MyConstant, lets you get into this market very rapidly. If you're interested, you can get yourself set up and borrow or lend money within a couple of days.

Even if you don't have a smartphone, you can still use one of these sites with either a laptop or tablet. Being able to get started with peer-to-peer lending while on the go makes this technology increasingly attractive.

2. Crypto Lending

The ability to lend or borrow money in cryptocurrency form is another reason why this market is picking up speed in 2022. Many individuals like buying, selling, or trading crypto. They also know they can't necessarily borrow or lend crypto through a traditional bank that might distrust this new technology.

Some peer-to-peer lending sites allow you to lend or borrow money in crypto form. If you consider yourself on the cutting edge of financial technology, also called fintech, you might choose to try one of these sites or apps for that reason.

3. Global Connectivity

Some borrowers and lenders also point to global connectivity as a reason why they want to get into this part of the fintech market. They know that if they're going to borrow funds or lend them out, they'll get access to an entire world of investors and clients if they use a platform that allows for international lending and borrowing.

Those who are comfortable lending and borrowing with peers internationally can do so with certain apps. That's not something you can do with a traditional lending entity like a credit union or bank.

Peer-to-Peer Lending is on the Rise

Anyone predicting growth in the peer-to-peer lending market can identify particular reasons why this field should expand. The global connectivity these apps offer is one of them. Lenders and borrowers can connect with peers internationally with this technology.

Some like the idea of lending out or borrowing money in crypto form. That's something most banks, credit unions, or other traditional lending entities won't allow. 

The fact that you can use peer-to-peer lending and borrowing technology on portable devices is another point in its favor. You might set up an account with your chosen peer-to-peer lending site on a smartphone, tablet, or laptop. Doing so while on the go makes this technology attractive to a wide variety of people. 

There's little doubt the peer-to-peer lending market should grow as time passes. Each individual must look at their financial situation and decide whether it's something they want to try.