Fastest-Growing P2P Markets in Europe

 

 

The European P2P lending scene is surging. In 2024 alone, the regional market hit around €768 million or 30%, with projections showing compound annual growth rates between 6.5% and 12% depending on the segment and methodology.

What’s driving this? Three major forces:

• Inflation-weary investors looking beyond savings accounts
• Tech-savvy platforms simplifying alternative investments
• Regulatory shifts opening the door for smarter, safer cross-border investing

And here’s the twist – it’s not just London or Berlin leading the charge. Countries like Latvia, Finland, and Poland are making serious moves, offering investors impressive returns and streamlined fintech tools with low entry barriers.

Let’s unpack the fastest-growing P2P markets in Europe, examine what’s fueling their growth, and show you where the smartest money is heading in 2025. Whether you’re looking to diversify geographically, chase double-digit returns, or just keep up with what’s next in alternative investing, this is where you start.

Key takeaways

• Eastern and Baltic Europe lead the pack with double-digit returns and growing platforms like Loanch and Swaper
• Regulation and fintech maturity play a massive role – countries aligned with EU-wide crowdfunding rules are safer bets
•  Cross-border investing allows for diversification, but comes with tax and currency risks
• Look for platforms with auto-invest, buyback guarantees, low entry thresholds, and solid underwriting standards
•  Inflation remains a driver – P2P loans in Eastern Europe still offer better net returns than many traditional savings products
  
  

Europe P2P market size & growth by country

So, who's actually growing – and who's just coasting? When we talk about P2P lending in Europe, it’s not a uniform market. Countries are moving at wildly different speeds, driven by everything from local regulation to investor appetite to inflation pressure.

Here’s a breakdown of what the 2025 map looks like:

Baltic countries – small but mighty

The Baltics punch way above their weight. Latvia, Lithuania, and Estonia have become regional fintech hubs, attracting global investors through platforms like Mintos, LendSecured, and Esketit.

Latvia is the standout, with Mintos reporting €9.6B+ in funded loans and more than 500K+ registered investors.

These platforms offer returns around 10–12% with relatively low minimum investments (Mintos: €50).

Regulatory improvements, like Latvia’s Investment Firm License requirement since 2021, added much-needed stability and transparency.

This region’s success is a textbook case of tech-first ecosystems, low overhead, and cross-border ambition.

Germany – slow growth, high trust

Germany remains cautious. The market is heavily regulated, and platforms like Auxmoney and Giromatch cater to domestic investors with modest returns (5–8%).

• Pros: strong consumer protection, low default rates
• Cons: low platform variety, fewer high-yield options

Still, for risk-averse investors, Germany is a solid anchor in a mixed portfolio.

Poland – rising fast with room to grow

Poland’s fintech scene has accelerated in the past two years. The loan volume tripled from 2022 to 2024, with platforms like Fellow Finance and Aforti shifting toward retail investors.

• Inflation made P2P attractive again – with returns averaging 9–11%
• Regulatory clarity is still evolving, so risk needs to be priced in
• Cross-border platforms are tapping into Poland as a supply-side loan originator hub

Spain & Italy – mixed signals

Both countries have large untapped markets but suffer from lower fintech penetration. Investors can find 10–12% returns on platforms like Lendermarket and Peerberry (originators in Spain), but delinquency rates and economic uncertainty keep many cautious.

Bottom line

If you’re investing cross-border in 2025, the Baltics, Poland, and parts of Southern Europe offer strong return potential. Germany and France offer stability – not excitement. And most importantly: always check platform transparency, buyback guarantees, and local regulation.

Next up? We'll dive into the pros and cons of investing across borders in Europe.

 

Is cross-border investing worth it in 2025?

So you’ve found a platform based in Latvia, lending to borrowers in Spain, with investors from Germany. Welcome to the wild world of cross-border P2P – and in 2025, it's no longer the exception. It's the rule.

But does investing outside your country still make sense?

Pros – Why investors love going global

• Higher returns – Countries with underbanked populations or less credit access often offer better yields (think: 11–13% vs. 5–7% in Western Europe).
• Better platform access – Some of the most trusted names (like Loanch, Mintos, and Peerberry) operate in multiple regions.
• Geographic diversification – Spreads your risk. If one region takes a hit (e.g., regulatory freeze, inflation spike), others might keep your income stream healthy.

Fact: According to P2PMarketData, nearly 70% of European P2P investors now invest outside their home country.

Cons – The risks you can’t ignore

• Currency risk – Investing in loans denominated in PLN or RON means fluctuations eat into your returns if the euro strengthens.
• Legal protection gaps – If something goes wrong with a platform, pursuing legal action across borders is a bureaucratic nightmare.
• Different regulatory standards – What’s considered “regulated” in Lithuania might not pass scrutiny in France.

And the biggest one: platform transparency. Many platforms claim to be “fully licensed,” but the licenses might be minimal or not even cover lending operations.

Pro tip: Always check the exact license type. A crowdfunding license ≠ investment firm license.

What savvy investors do in 2025

Use platforms that clearly show originator location, license type, and risk tier – like Loanch, which partners with originators in Southeast Asia but operates under a transparent EU-based structure.

Put the biggest chunk in euro-denominated loans to reduce currency risk.

Diversify across platforms, not just countries.

The conclusion? Cross-border investing is absolutely worth it in 2025 – if you're strategic. The upside is real, but you need to know where the landmines are.

 

Which countries are leading in P2P lending growth in 2025?

Let’s get to the good part – which countries are actually killing it in the P2P lending Europe landscape right now? Based on platform activity, investor inflows, and new fintech licenses, here are the top picks for 2025.

1. Latvia – Still the Baltic boss

Latvia’s capital, Riga, might as well be the Silicon Valley of P2P. With platforms like Loanch, Mintos, and Twino based there, it’s no surprise Latvia continues to dominate.

• Pros: Homegrown platforms, strong EU regulation adherence, multi-originator model
• Cons: Some platforms hit by buyback defaults in 2022–2023 (e.g., Finko group issues)
• Inflation: Stable around 1.3% (Trading Economics)
• Avg. returns: 11–13%

Baltic platforms also benefit from advanced auto-invest tools, localization in multiple languages, and access to international investors.

2. Estonia – Small but mighty

Estonia, like Latvia, punches above its weight. Known for e-residency and digital-first innovation, it’s home to Bondora and other regional players.

• Pros: High trust in digital finance, well-regulated environment, fintech talent
• Cons: More conservative loan books – lower yields
• Inflation: Currently around 3%, down from 18% peak in 2022
• Avg. returns: 8–10%

Estonia is also a great sandbox for testing new fintech investment strategies – AI underwriting, gamified dashboards, etc.

3. Poland – Rising star in central Europe

Poland’s lending platforms are gaining traction, offering local consumer loans to foreign investors.

• Pros: Strong borrower demand, large population, improving tech infrastructure
• Cons: Currency risk (PLN), tighter consumer credit regulation in 2024
• Inflation: Around 4.2%, easing but still elevated
• Avg. returns: 10–12%

While it’s still not as developed as Baltic platforms, Poland is one of the fastest-growing regions for mid-risk, short-term loan origination.

4. Spain – Western Europe’s dark horse

Traditionally risk-averse investors are warming up to Spanish P2P, especially real estate-backed platforms like Housers or MyTripleA.

• Pros: Real estate + SME lending options, euro-denominated loans
• Cons: Lengthier loan terms, slower secondary markets
• Inflation: 3.4%
• Avg. returns: 6–9%

Spain’s growth is slower, but it's attractive for long-term, lower-risk diversification – especially for Western European investors who prefer to stay inside euro borders.

5. Romania & Bulgaria – Frontier risk, frontier rewards

Some of the highest returns in Europe right now are coming out of southeastern platforms.

• Pros: Limited credit access = high borrower demand = high interest
• Cons: Minimal regulation, lack of platform history, currency risks
• Inflation: Romania ~6%, Bulgaria ~3%
• Avg. returns: 12–14%, sometimes higher

If you’re hunting yield and don’t mind volatility, these frontier markets are worth exploring – but only through platforms with solid track records and strong buyback policies.

In summary, the Baltics are still the backbone of P2P lending in Europe, while central and southeastern countries are catching up fast. Next, let’s talk about how to actually build a smart regional strategy.

 

What drives growth in Europe’s P2P regions?

Europe’s P2P lending boom isn’t evenly spread – it’s concentrated in regions where fintech innovation, regulatory flexibility, and economic opportunity align. Let’s break down the key drivers behind why some European countries are becoming P2P growth engines.

Access to credit for underserved borrowers

In many emerging EU economies, traditional banks still fail to serve freelancers, micro-SMEs, and thin-credit-file individuals. This opens the door for P2P lenders to fill the gap – fast, digitally, and with fewer hoops.

• In countries like Romania, Bulgaria, and the Western Balkans, SME loan rejection rates hover around 30–40%, according to the European Investment Bank (2024 SME Access to Finance Report).

Platforms like Mintos and PeerBerry are capitalizing on this, expanding lending via local originators where traditional finance is too rigid or risk-averse.

P2P returns that outpace inflation

Even in 2025, Europe’s inflation rates are a mixed bag. According to Eurostat, Baltic states are seeing inflation between 2% and 3%, while Hungary still hovers around 5.8%. Compare that with average P2P returns across top platforms, which still range from 10% to 12%, and the appeal is obvious.

• In a region where real returns on savings accounts are often negative, P2P becomes a de facto inflation shield.

Digital-first policy and EU-wide regulation

The 2021 EU Crowdfunding Regulation (ECSPR) and the EU Digital Finance Strategy have made it easier than ever for licensed platforms to operate cross-border. Countries with proactive regulators – like Lithuania, Estonia, and Spain – are seeing a fintech inflow, as platforms seek jurisdictions that balance innovation with oversight.

According to the European Commission, over 70 platforms have registered under ECSPR, most of them planning EU-wide operations.

Product innovation: from auto-invest to localization

Leading platforms aren’t just competing on returns – they’re winning on usability. Features like auto-invest, low entry thresholds (as little as €10), multi-language UIs, and fast withdrawals attract a wide range of beginner investors.

At Loanch, we’ve seen that combining a simple onboarding flow with no fees, auto-invest, and instant top-ups is key to onboarding users from both Western Europe and the Baltics who are new to P2P.

 

How are fintech trends shaping regional P2P growth?

The P2P lending boom across Europe isn't happening in a vacuum – it's riding a wave of regional fintech trends that are reshaping how money moves, how risk is managed, and how trust is built between investors and borrowers.

Why does fintech maturity matter?

Countries with thriving fintech ecosystems tend to attract more P2P platforms and capital. These ecosystems create a feedback loop: better infrastructure, more innovation, smoother regulation, and faster adoption. The result? Certain regions like the Baltics and the Nordics are outpacing others in P2P lending momentum.

Key regional fintech trends impacting P2P:

Open banking – Enabled by PSD2, open banking lets platforms connect directly to user accounts for fast KYC, instant top-ups, and real-time risk data. This is already standard in Estonia, Lithuania, and Sweden.

Embedded finance – Leading platforms are integrating with ecommerce, neobanks, and apps to offer lending as a feature, not a product. Germany and the Netherlands are hotbeds for this.

AI-driven credit scoring – Countries with access to robust data infrastructure are seeing P2P platforms implement automated credit decisions, lowering default rates. Poland, Finland, and Lithuania are leading here.

Mobile-first platforms – In Southern and Eastern Europe, where mobile is the primary internet access point, P2P platforms are optimizing UX for app-first usage – crucial for scale.

According to the Fintech Global 2025 report, 40% of all new fintech startups in Central and Eastern Europe (CEE) in 2024 were related to lending or credit risk, with P2P platforms leading that pack.

 

Cross-border P2P investing: opportunities and challenges

As Europe’s P2P lending scene matures, many investors are going cross-border, putting their money to work outside their home country. But while cross-border P2P offers big advantages, it’s not without a few thorns.

Why go cross-border?

• Geographic diversification – Investing across multiple countries reduces risk tied to local economic downturns or political volatility. If Latvia’s economy slows, Spain might pick up the slack.
• Currency hedging – Lending in EUR, PLN, or KZT can help hedge against local inflation or weak bank yields. Platforms like Mintos even let you choose the currency.
• Regulatory arbitrage – Not all countries regulate P2P equally. Some have tighter consumer protection rules or capital requirements that create barriers. Platforms can “passport” their EU license across borders, letting investors benefit from stronger jurisdictions.

What’s the catch?

Tax complexity – Earnings in another country might require dual reporting or withholding tax forms. Most platforms don’t provide country-specific tax guidance.

Currency risk – Investing in platforms offering returns in PLN or KZT means exposure to FX fluctuations. Even with double-digit returns, a weak currency can eat into profits.

Cash drag – Spreading your investments across multiple platforms or markets can lead to idle capital between loans or during currency conversions.

How to do it right

If you're looking to go cross-border with confidence, use platforms that support multiple national markets through a single account. Look for those that:

• Are licensed under ECSPR (EU Crowdfunding Service Provider Regulation)
• Offer auto-invest across countries
• Provide multi-currency options
• Offer built-in tools for tax reporting

For example, Loanch supports investors from across the EU/EEA and makes it easy to invest in Asian-originated loans in EUR without ever touching a conversion screen.

 

Choosing platforms by country: key criteria

Not all P2P markets in Europe are created equal – and neither are the platforms. If you're trying to figure out where to start, or where to expand next, here’s how to evaluate the best countries for P2P investing based on data, platform features, and regulations.

What should you look for in a platform?

Whether you’re sticking local or going cross-border, here are the must-check boxes for any platform:

1. Minimum deposit – Loanch, for example, lets you start investing with just €10
2. Auto-invest – Essential for passive returns and diversification
3. Buyback guarantee – Not a safety net, but a useful risk-management tool
4. Local vs cross-border focus – Some platforms specialize in their own country, while others (like Mintos, PeerBerry, and Loanch) pool loans across multiple regions
5. Fee transparency – Watch out for hidden fees on withdrawals, currency exchange, or secondary market transactions
6. Originator quality – Especially on marketplaces, the loan originator’s reliability is more important than the platform’s slick UI

Top platforms by region

Here’s where Europe’s P2P lending scene is buzzing in 2025:

Baltic region

Platforms like Esketit, Loanch, and Twino dominate here. Why?

• High yields (Swaper offers up to 16% on some loans)
• Strong fintech infrastructure
• Transparent regulatory frameworks (Latvia and Estonia are fully aligned with ECSPR)

United Kingdom

Even post-Brexit, the UK remains one of Europe’s most mature P2P markets.

• Zopa and Funding Circle are now partly institutional but still accessible to individuals
• Strong FCA regulation
• Secondary market liquidity

Germany

A steady market driven by local income loans.

• Auxmoney and Lendico focus on consumer lending
• Returns are lower (5–8%) but risk is too
• German regulation is strict – good for security, not speed

Finland

Home to a few niche platforms like Fixura or Aurajoki Nordic.

• Focus on short-term consumer lending
• Smaller loan volumes
• Stable returns in a low-default environment
  
  

Final takeaway – Europe’s P2P scene is heating up

From the Baltics to Germany, Europe’s P2P lending market in 2025 offers a buffet of high-yield opportunities and emerging fintech ecosystems. If you know how to read the trends – and choose your platforms carefully – you can build a cross-border, inflation-beating portfolio that fits your risk tolerance.

Whether you're a cautious first-timer or a veteran investor looking to diversify your P2P lending in Europe, the smartest play is to mix regions, stay updated on regulation (especially ECSPR), and always vet platforms for transparency and performance.