Gateway Guide to P2P Microlending Platforms

Date Published: 
Sep 2014

Highlighting some of the most successful P2P microlending platforms

Technology is a vital element of the innovation taking place to advance financial inclusion. Technology-enabled businesses allow people to conduct many basic transactions, such as person-to-person (P2P) payments, without ever stepping inside a bank branch. P2P lending in microfinance has evolved significantly since its emergence a decade ago. We present a few of the most successful platforms, representing both the indirect model (lending which takes place via microfinance partners in the field) and the direct model (lending in which the borrowers and lenders connect directly).  

Founded in 2005, Kiva is a non-profit organization with a mission to connect people through lending to alleviate poverty. Leveraging the internet and a worldwide network of microfinance institutions, Kiva lets individuals lend as little as $25 to help create opportunity around the world.

MYC4 is an internet marketplace where investors from around the world can lend money to entrepreneurs who are doing business in Africa and create growth together with them. The MYC4 platform is built around a network of local providers screening the businesses who would like to obtain a loan and local administrators handling the financial transactions.

Uses technology to connect internet-capable young adults in the world's poorest places with a global market for person-to-person loans - an eBay-style marketplace where borrowers transact directly with lenders and raise the funding they need to grow their small businesses, limited only by their own track record of responsible repayment.

A social business and the first P2P microlending platform in France, Babyloan enables lenders to support entrepreneurs around the world via local microfinance institutions. Loans can be as little as 20 Euros.