Factors Affecting BoP Producer Intention to Use P2P Lending Platforms in India

Abstract

Myriad studies have been done to investigate consumer behavior in peer-to-peer (P2P) lending. However, participation intention in P2P lending in the Bottom of Pyramid (BoP) context has received little attention. Whereas credit accessibility has been a challenge for BoP producers. Recognizing the potential of P2P lending to alleviate this challenge, this study aimed to present an integrated theoretical framework extending the theory of planned behavior to identify the factors influencing P2P lending adoption by the borrowers (BoP producers) and lenders. We conducted 12 semi-structured in-depth interviews of BoP borrowers, lenders, and executives of three prominent P2P platforms in India. Results emerging from thematic analysis (using NVIVO) indicate while faster access and ease associated with P2P lending favorably impact borrowers’ intention to participate, lenders are positively influenced by the high returns and diversified risk. From the model, a research agenda of five propositions are drawn for future research. The managerial and policy implications of the study are discussed.

Keywords:

• BOP
• emerging markets
• India
• peer-to-peer
• theory of planned behaviour