South Africa P2P Lending Market Size Zooming about 10X at Robust CAGR of 31% to Cross USD 11 Billion by 2029

Published | 20 April 2023

South Africa P2P lending market is flourishing owing to the increasing use of digitization in the banking industry, minimal operating costs and risks, and a technologically advanced P2P market with greater transparency than traditional banking systems.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated South Africa P2P lending market size at USD 1.69 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects South Africa P2P lending market size to grow at a robust CAGR of 31.03% reaching a value of USD 11.12 billion by 2029. The rapid development and appearance of online P2P lending models around the nation are key elements boosting the growth of the South Africa P2P lending market. For a market that is expanding quickly, the capacity to develop a regulatory framework that offers guarantees to consumers and market participants is essential. Due to factors like rising interest rates, competition from banks, and the size of the consumer market, growth forecasts in the P2P lending sector are expected to stay stable. The loan is expected to hasten the peak, ease corporate operations, and offer straightforward answers for both people and companies. Several hopeful steps have been made in the direction of developing a specialized legislative response to this developing sector, which offers additional and essential sources of funding for individuals and startups. However, a lack of awareness among people regarding P2P lending may limit the expansion of South Africa P2P lending market.

South Africa P2P Lending Market – Overview

Peer-to-peer lending, commonly referred to as P2P lending, is a way of extending credit to people or businesses through Internet platforms that link lenders and borrowers. No financial middleman (intermediary) exists between the lender and the borrower. The procedure begins with user registration and continues with the collection of online documents, client identity and verification, loan approval, distribution of loans, and loan recovery.

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Impact of COVID-19 on South Africa P2P Lending Market

The COVID-19 pandemic resulted in growth across all fields of fintech, including payments, loans, and traditional banking. Despite having fewer users overall, lending platforms have seen a considerable increase in users. This was partially because many firms required quick loan approvals to stay open during the hard times. People have begun to use contactless transactions to prevent the infection from spreading.  Also, during the COVID-19 pandemic, banks have been using digital channels more frequently to provide loans under the Paycheck Protection Program.

South Africa P2P Lending Market - By End User

On basis of end users, South Africa P2P lending market is divided into Consumer Credit Loans, Small Business Loans, Student Loans, and Real Estate Loans segments. The small business loans segment dominates the South Africa P2P lending market. Small business loans are necessary to start a new business, invest in infrastructure, upgrade to the latest plant, expand operations and machinery, maintain inventories, or raise working capital, which ultimately drives the market growth.

Competitive Landscape

South Africa P2P lending market is fiercely competitive. Major companies in the market include RainFin, FundingHub, Ozow, Fincheck, Lulalend, Naledi3d Factory, Fedgroup, Edge Growth, PeopleFund, and Inclusivity Solutions. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in the South Africa P2P lending market.

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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of South Africa P2P Lending Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in South Africa P2P Lending Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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