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How Much Would It Cost to Make a P2P Lending Platform?

Getting a bank loan is not easy for millions of people. The world’s unbanked population is 1.4 billion, with billions more remaining underbanked. Even in the USA, 5%+ of households remain totally unbanked, and over 25% more are underbanked, according to the FDIC report. These figures translate into 63+ million American adults who don’t have access to traditional finance. 

What does this mean for FinTech businesses?

  • You can access a huge customer base by offering more loyal and flexible financing services than traditional banking does. 
  • You can create a steady, lucrative revenue stream in the FinTech industry by offering safe P2P lending solutions. 
  • Entering a P2P market niche is relatively easy today, with the basic requirement of a P2P lending app/platform and a smart credit risk assessment mechanism that minimizes lenders’ risks.

You can join the rising digital finance industry and the emerging P2P lending sector with a technically superior, safe solution, which has immense potential amid the changing financial sector. As of 2021, P2P lending had an $83+ billion market size and is estimated to continue growing at a CAGR of 29.7% in the coming years. 

Statista experts project P2P lending to exceed 1 trillion USD by 2050. The P2P projects have made finance more accessible and affordable to billions, and the sector is likely to enjoy quicker growth with the mass adoption of innovative technologies. 

Here we examine the ins and outs of the P2P lending business to let you make an informed decision on building your own peer to peer lending software for users. We also provide a detailed breakdown of such a project’s cost and factors to consider at all stages.

Read on to get equipped with all vital data on P2P financing and get a new revenue stream for yourself. 

Per-to-per (P2P) Lending Market Growth Rate

Key advantages and disadvantages of peer-to-peer lending platforms 

The emergence of P2P lending has opened many doors to people with scarce access to traditional finance. However, it’s a sector with its own specifics and nuances, so one shouldn’t consider it a panacea to all financial needs. 

Here is an overview of the pros and cons you should know before using or launching P2P lending services.  


  • Lower interest rates, greater returns. The P2P market is highly competitive, so providers set minimal interest rates for lenders to retain loyal clientele. Thus, as a business owner, you can enjoy greater returns by giving your users a well-priced P2P lending service package.   
  • More democratic access to finance. P2P lending is more accessible to people with different economic statuses. Fewer documents are required to get a loan, giving previously underbanked and unbanked people easy access to funds.  
  • Thorough assessment. Most P2P platforms operate on blockchain and use cutting-edge analytical tools, so they can perform smart creditworthiness assessments with a larger number of factors than a regular balance scorecard.
  • Greater flexibility. Compared to traditional banks, you can enjoy a broader variety of credit products and terms at P2P organizations. 


  • Credit risk. Lenders in the P2P market need to tolerate higher credit risks because they give money to high-risk consumers. Thus, it is vital to include these elevated risks in the business model.
  • Legislative loopholes. FinTech is a developing industry that faces much legal resistance in many jurisdictions. Before launching a P2P platform, you need to choose all regulations and ensure that you don’t break the law.

Why is it a wise decision to invest in a P2P lending app? 

There are many factors in favor of joining this rapidly expanding FinTech market niche. 

  • The P2P lending market was only $83+ billion in 2021, but its size is expected to reach $700+ billion by 2030. 
  • As of 2020, 126+ million Americans were using P2P lending apps. According to LendingTree research, 84% of consumers have tried P2P lending already, and 44% use them at least once a week. 
  • Africa is the largest P2P lending market, with over 70% of payments (over $1 trillion) made by clients from African countries.

As you can see, the pace of P2P market growth is quick. It’s currently dominated by giants like PayPal, Venmo, and Google Pay, but more P2P lending apps are entering the market every day to make it more competitive and diversified. 

The good news is that you can also build an attractive and feature-rich peer to peer loan app and grab a fair share of this lucrative market. Let’s find out how it works. 

Crucial things to consider before developing a money lending app 

Building a secured P2P lending app is a multi-stage process that goes far beyond software creation. Here are the preparatory steps every FinTech startup should take. 

  • Adherence to government rules and regulations. Since your P2P lending software provides financial services, you should ensure that it meets all local regulations and licensing requirements. This way, you will avoid legal trouble and fines, let alone the closure of your project by law enforcement. 
  • Collaboration with banks. Working with traditional financial institutions is unavoidable even in P2P lending, as clients need to deposit and withdraw money somehow. Study the list of local banks and international finance operators to find the best partner for payment processing. 
  • Borrower’s verification process. Rigorous user verification is part and parcel of secure P2P loan apps, so you should include the KYC/AML policy. The standard verification steps include state-issued ID verification, phone number check, bank account validation, and tax documentation checks. 
  • GDPR compliance. GDPR is an overarching regulation protecting user data across the EU. Even if you operate beyond the EU borders, it’s better to ensure GDPR compliance, as some of your users can be from the EU or conduct transactions to and from the EU, thus making you eligible.  
  • PCI DSS certification. As your clients are likely to use credit and debit cards when operating your app, you must ensure compliance with the PCI DSS security control policies and procedures.

How does a P2P loan app work

Let’s take a sneak peek into the operations of a peer to peer lending app to clarify what it takes to build and operate one. 

  1. Borrowers and lenders sign up for a P2P app and create their accounts. 
  2. Borrower fills out the form with their banking details, occupation, and regular income data to enable lenders and smart creditworthiness assessment algorithms to evaluate their risk levels. 
  3. Lenders also link their bank accounts to the system and pick the loan products they’re ready to provide. 
  4. Borrowers apply for loans provided by lenders. 
  5. Lenders review applications and decide on who they will award the loan to. 
  6. Once the loan gets approved, the borrower gets the money on the predetermined terms to their bank account. 

All data about terms, dates of payment, and interest rates are conveniently displayed in the users’ profiles. Both lenders and borrowers track their active loans and receive notifications about status changes. Here is a figure visualizing the process of p2p lending. 

Cost to create a loan lending mobile app in 2022 

Now, let’s boil it down to features and numbers – what does a lending app include, and how much would it cost to create a P2P lending platform

The bare minimum your P2P lending app would need to operate safely and deliver the needed services to users is: 

  • A website 
  • A login/signup function 
  • User profile 
  • A user dashboard (different for borrowers and lenders) 
  • Connectivity with banks 
  • Credit score calculation 
  • Document processing 
  • Loan management 

However, these features mostly relate to the platform’s front-end part. The app’s back end is also an essential part of the process. It’s much harder to estimate the cost of back-end development because a blockchain-powered P2P lending app (a DeFi app) is serverless, so it has a distinct cost breakdown than a traditional digital app would have.

Here is a calculation of hours and rates for this task you may count on. We’ve taken an average breakdown of hours necessary for P2P loan development and have added the rates you may get from a low-cost, medium-cost, and high-cost dev provider in different parts of the world. 

 HoursLow cost ($35 per hour)Middle cost ($70 per hour)High cost ($100 per hour)
User profile25-30$875-$1,050$1,750-$2,100$2,500-$3,000
User dashboard30-40$1,050-$1,400$2,100-$2,800$3,000-$4,000
Bank connectivity15-25$525-$875$1,050-$1,750$1,500-$2,500
Creditworthiness calculation algorithm15-25$525-$875$1,050-$1,750$1,500-$2,500
Document processing25-30$875-$1,050$1,7500-$2,100$2,500-$3,000
Loan management30-40$1,050-$1,400$2,100-$2,800$3,000-$4,000
QA testing30-40$1,050-$1,400$2,100-$2,800$3,000-$4,000
Back-end development300+$10,500+$21,000+$30,000+

Thus, based on such a rough estimate, the cost to create a P2P lending platform ranges from $45,000 to $100,000+ for a P2P lending app. 

Negotiate every aspect of the development scope with your dev agency to determine the budget before starting the work. Also, it’s critical to discuss all revisions and additions underway to understand what unexpected costs and hidden fees you can encounter in the process. 

How to make profit from money lending app? 

A typical concern of money lenders software creators is the ability to make money on such a project. As a rule, P2P app owners get revenue from the origination and transaction fees. 

Origination Fees 

As a provider of secured peer to peer lending services, you can set a fixed or dynamic origination fee deducted from every allocated loan. As a rule, the obligation to pay the fee lies on the borrower. Thus, when you get $1,000 from a P2P lender, the platform sets a 5% fee, and you’re likely to get only $950 to your account, repaying the full sum ($1,000). 

Transaction Fees 

Transaction fees are charged for all transactions on the P2P platform, which operates as a provider of secure, instant transactions. Besides, the transaction fee is usually charged from the lender after the borrower successfully covers the entire loan. 


As our review suggests, P2P lending is a lucrative business with a moderate entry barrier in the form of local regulatory compliance and the cost of building a platform for P2P operations. 

With the rapid growth of this market and the rising number of regular P2P lending users, this business niche is definitely worth considering as a source of steady income for projects of all sizes. 


What is a P2P lending app? 

A P2P lending app is a financial software product allowing users to get and provide loans on a peer-to-peer basis without intermediary oversight. 

How does digitization change lending?

Digital services have revolutionized the lending sector of finance by giving lenders and borrowers secure online platforms to meet one another and negotiate favorable loan terms without a central intermediary (e.g., a bank). 

How to build a P2P lending platform? 

First, you need to find a reliable and experienced software engineering firm with expertise in building peer lending apps. Next, you should discuss the set of required features, the underlying technology, and the budget for this project. The final product will require rigorous QA testing and security audit; after that, it’s ready for launch. 

Who can use P2P lending? 

Anyone can become a borrower or lender in the P2P market. You only need to have verification documents and an active bank account (active for over one year). 

Why invest in P2P lending? 

Investments in P2P lending are sure to pay off quickly because of this market’s quick expansion and growing popularity among users worldwide. It’s more accessible and flexible for consumers, and both lenders and P2P platform owners can generate high revenue from this form of financing. 


Future of digital banking is inevitable

The financial market has a small margin, fierce competition and a constantly decreasing level of customer loyalty. In this situation, the worst thing that classic financial players can do nowadays goes with the flow. The digital transformation process is inevitable in order to be a competitive in the banking sector. Notably, the industry is trying to adapt to the new business challenges by a combination of the new technologies and transformation of the old leadership system.

Nowadays, a lot of new players appear in the financial market, including financial, technological and telecommunication companies. All of them are eyeing the most attractive segments of the financial industry. As a result, in order to maintain competitiveness, banks should devote much more attention to converting their services to digital form and not forget about the most important factor of their success – about customers and their needs.

In most cases, technological transformation involves the implementation of large-scale changes that may take years to build a new customer-oriented banking system. It is a complex process of change, which includes the total destruction of the organization’s outdated structure and the execution of new strategies, skills, and technological advancements. The basic idea is moving from a product focus to a consumer focus.

For that reason, the digital transformation of the banking system is more influential when all updated processes improve the customer-facing engagement including direct communication, products and services, marketing strategies and support customer services. The prominent feature of the digitalization is creating a productive and successful interaction through multiple channels.

What are the main features of the Digital Organization?

First and foremost, such companies use their customers as a prior focus. It means that the firm should simplify interaction with customers through all the channels and track the customers’ experience at every contact point.

Secondly, the firm should update its corporate policies and the rules of conduct among staff. This point is closely related to the fact that the banking system always has a lot of employees who interact not only with each other but with external clients too. That is why, it is important for the distribution of roles, placing the structure and defining the responsibilities of employees.

Thirdly, corporate culture reinforces the company’s new technological innovations and helps implement its digital strategy. At that point, we can define the emerging new digital culture and its culture shift in the financial sector.

Why is digital culture important?

Culture is an integral aspect of influence in the process of the technological transformation of banks. Culture directs employees to productive work in accordance with the rules and the main meanings of the brand strategy. This helps to maintain brand integrity within the customers, as well as strengthen the internal team within the company. Digital culture manages the banking system to become more flexible, to show results and quickly make decisions due to the fast flow of the data within multiple channels. Furthermore, companies with digitalized culture have advantages over potential job candidates. Since the new generation does not agree to engage in tedious routine work, they want interesting projects, innovations and various bonuses within the company. The reputation of a digital leader is a magnet for talent. Millennials, as a rule, are drawn to digital companies with their promise of a collaborative, creative environment and greater autonomy. Such benefits can be offered only by companies that are constantly introducing technologies and developing their brand performance. Moreover, financial firms should receive high profits from the chosen strategy.

Six key elements of digital culture

Since the importance of the digital culture phenomenon in modern financial companies is growing, it is worth noting the main components which contribute to its development.

1. Collaboration matters more than individual efforts.

Success in digital culture comes from teamwork and the exchange of information between departments, units, and functions. The iterative and fast pace of digital work requires a much higher level of transparency and interaction than in a traditional organization.

2. Focus on action.

In a fast-paced digital world, planning and decision-making must shift from a long-term to a short-term process. Digital culture supports the need for speed and promotes continuous iteration, rather than improving a product or idea before launching it.

3. Encourages external rather than internal orientation.

Digital culture helps orient employees outside and interact with customers and partners to create new solutions. A striking example of external orientation is the focus on the customer journey; employees shape product development and improve the quality of customer service, putting themselves in the shoes of the customer.

4. More courage, less caution.

In a digital culture, people are encouraged to take risks, quickly cope with failures and learn from mistakes, and they are not advised to maintain the status quo because of habit or caution.

5. Delegation

Digital culture extends decision-making deeply into the organization. Instead of receiving explicit instructions on how to do their job, employees follow guidelines so that their opinions can be trusted.

6. Leadership

All high-performing cultures, especially digital ones, require strong leadership and involved employees. Companies can leverage leadership by creating everyday opportunities for leaders to serve as role models to instill behavior.

Digital culture is a challenge. A traditional culture based on hierarchy and teams or units competing for resources is largely contrary to digital culture with its emphasis on delegation, collaboration, and speed. However, if companies do not change their organizational context — basic systems, processes, and practices — it’s almost impossible to expand and implement new behavior throughout the organization.

For the successful implementation of a new culture, companies need to anticipate what they need to do outside of the pilot launch. Firms should rethink their operating model. They also may think to implement new practices by analyzing each of the areas of organizational context – leadership, organizational design, performance management, people development methods, resources and tools, vision, values and informal interactions – and also making specific changes that stimulate proper behavior. To conclude, cultural change is a determining factor in successful transformation.

Smart Software Ideas for Offline To Online

Response to the Coronavirus Outbreak

The COVID-19 outbreak shut the world down for high-contact businesses and forced them to rethink their development strategies and business plans, take decisive actions depending on the industry they are in. Classical offline businesses are aware they have to learn how to shift to online to stay afloat during these uncertain times.

According to McKinsey & Company’s study, market capitalization has lessened across many sectors. There is a significant variety of the amount of the decline.

On the diagram below you can see the decline of market capitalization in various business areas. (Weighted average to date local currency whole shareholder returns by industry in percent. Width of bars is beginning market cap in $).

Today’s events are unpredictable. Actually, there is little chance the coronavirus will be eradicated soon. No one can predict the second wave of the pandemic.

This is the moment you must take specific actions and rebuild your company to survive an economic downturn.

There is a wide array of ways businesses can respond to the current COVID-19 horror story, yet the best one is to move online and cogitate about developing an appropriate solution.

This article focuses on some of the most effective and lucrative ideas to shift diverse offline businesses online. It contains plenty of examples to prove these ideas really work. In addition, it describes the cases of our clients, whose situations we know firsthand.

Education Courses: make a switchover to online learning

The coronavirus outbreak led to the near-total closure of educational institutions all over the world. At the same time, there has been a huge increase in the popularity of online learning.


  • Educational web portals for shifting training online, uploading and selling video lectures and courses.
  • Applications with live streaming technologies for live lecture broadcasting.
  • EdTech – concentrate on brand-new technologies in education that combine advanced technologies, methods of creating and delivering new knowledge, analytics, and learning effectiveness measurement.


Moving online within a couple of days. The vivid example of cost-effective going online is a Spanish language school. The quarantine-related school closure made the staff seriously wonder what they would do next. To be honest, none of the teachers have ever heard of Zoom or had online teaching experience.

Nevertheless, in a couple of days, the school started with online classes and so far, they are going pretty well. The school did not lose a single student; on the contrary, it attracted new ones from other cities.

Now the language school is working on its educational portal and is actively creating an online learning environment.

Own Zoom. Programming & Web Developing Courses took a very serious approach to arrange online classes. The company has already had its educational platform but did not want to restrict in-person training to using only Zoom technology. In fact, recognizing the value of owning its platform, the company would like to receive data that helps to increase product success.

Within three weeks, the company developed Zoom analog right in its training platform. Thanks to the quick transition to online, none of the students quitted learning and the company gained its reputation as an academic innovator by developing and selling a number of new online courses.

Sport and Fitness: offline to online shift

For gyms, fitness studios, and private trainers, switching to the online workout isn’t easy. Since social distancing is crucial during the coronavirus time, many fitness studios hosted free live workouts on Instagram: business owners hoped quarantine would not last long. But it turned out that measures to tackle the pandemic were much more serious.

It became obvious that businesses must be quick to adapt to survive, as the world most likely will not go back to as it was before.


  • A mobile app or web platform for the online workout. You can lower the price to keep up and maintain the customer base. Even after quarantine, you can offer online workout options to help everyone stay fit across the globe.
  • Selling video records of workout training.
  • Live streaming apps for workout broadcasting.
  • Website for booking online workouts.


Be a cut above the competitors. One of the gym owners admits that he did not believe that anybody could buy his video content since many trainers stream for free. But soon he realized that he should be a cut above to compete. The trainers of his gym created video content to get people motivated, to give health and nutrition tips, and to cheer clients up. The team launched online marathons in Zoom. Despite it being the team’s first experience, it led to business success and recouped initial investment.

All ingenious is simple and sometimes is cheap. Another gym owner mentioned that he created video content with added value for customers. Being an amateur shutterbug, he just used an iPhone, a microphone, and a tripod to shoot videos for YouTube. Access to the videos was given only to the gym clients. Now the owner is slogging on creating a portal with registration-to-gym procedures, online training sessions, and other business ideas.

Retail: how to start your own online business

Retail has been hit particularly hard, as the COVID-19 pandemic forced retail stores, malls, and shopping centers to close. However, the crisis provoked many creative ideas of developing software to attract and retain new customers.


  • Own online store.


How to keep income at the pre-crisis level. This is the story about business, whose development is taking place before our eyes. Earlier, we assisted the retail chain owner in creating an online store. At the beginning of the quarantine lockdown, he agreed to partner with a delivery service. Thanks to this, he was able to keep his sales humming.

By the way, it wasn’t enough for him, so at the moment we are developing a number of applications to support his own delivery service.

Do what you never dreamed of before. According to the insider information, in March, the offline sales of the on-trend clothing boutique plummeted nearly 50%. In April, there were no sales at all. At the same time, online sales witnessed growth by at least 60%.

The owner wrapped his mind around increasing online sales. Now his team is actively collecting customer feedback, offering repair services, providing a comprehensive policy for returns and exchanges, and selecting items based on purchasing-history data.

Moreover, the store started selling internationally, which the owner had not even dreamed of before.

Leisure: how to get online in such a business

In light of coronavirus disease, it would seem that leisure-related businesses are suffering the most immediate repercussions. In fact, the leisure industry is able to adapt to challenging conditions and find a way out with recently-developed software.


  • Web portals to which you can upload your online courses or transfer the theoretical parts of training courses.
  • Web sites, where you can talk about your services and value proposition, share your ideas and experiences, place your blog.


Lucky Strike. Do you have a suggestion on how to switch the yacht club online? During the coronavirus outbreak, the club owner had to close the office and cancel all public events.

At the same time, the company launched highly informative online yacht training courses with a theoretical part. It was an incredible success: everyone who wanted to learn sailing, but did not have time or lived in another city, could study the theoretical section of the course.

Besides, the company created a number of sports courses, started a blog, translated several sailing movies, and launched the online store with the club’s merchandise.

Catering Business: working offline and online

Many restaurants, cafes, and bars had to close during the coronavirus outbreak. Restaurant business owners understood they had to find new ways to get customers. Therefore, many restaurants offer takeout and delivery options.


  • Online food ordering apps and websites.
  • Mobile self-service or contactless service apps.


100% Contactless. Here we would like to share the story of our client. He asked us to develop a contactless dining app to maintain adequate social distancing and minimal contact between visitors and staff at a restaurant.

The app works like this: the user sits at the table, scans the QR code on the table, and downloads the app. Then he places an order by indicating his table number. Payments are fully digital through smartphones. Thus, the entire dining out process is completely contactless.

Entertainment: the show must stream online

Cinemas, amusement parks, theaters, and other cultural venues like concert halls and museums were closed worldwide due to COVID-19. However, it is the entertainment industry that helps people to amuse themselves in their leisure time and distract from heavy thoughts during unprecedented health and economic crises.


  • Live streaming event apps for concert and performance video broadcasting.
  • Applications and websites for professional virtual tours.


Consider tech issues and do not forget about donations. Some theaters have already begun streaming their pre-recorded or live performances online. Fine-tuning, high-quality sound, and image are the keys to success.

You can arrange a symbolic cost per view to keep the business afloat. Some theaters and cinemas sell access to online videos to a worldwide audience, others accept online donations, so anyone can thank for watching a movie or performance by donating any amount of money.


The world will never be the same. A business won’t be the same.

We tried our best to give you the tools to improve your business. With them, you can endure this crisis and all subsequent ones.

Here, we accumulated ideas and examples of bridging the gap between offline and online business. We are sure that the list is not complete. The world is full of incredibly talented and creative people, whose desire for growth and development never goes away.

These days are times of radical changes. Gain momentum – think about ideas that quickly turn into a profitable business during a crisis.

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