Work

Peer-To-Peer Lending: A Friend or Foe to the Payday Lending-Crime Relationship

Year: 2026

Type: article

Abstract: This study focuses on two financial alternatives, payday and peer-to-peer (P2P) loans, and their association with crime. We study whether P2P lending is an improved alternative to payday loans or whether the additional access to liquidity reinforces the payday lending-crime relationship. We take advantage of the differences in the U.S. regulatory environment of payday lenders and find that there is a direct relationship between payday lending and P2P lending. P2P lending provides temporary relief, but such relief transforms itself into a financial burden, causing an increase in both property and violent crime while simultaneously reinforcing the payday lending-property crime relationship.

Source: The International Trade Journal

DOI: 10.1080/08853908.2026.2629938

Authors: Leiza Nochebuena-Evans, Nathaniel P. Graham, Augustine Tarkom

Institutions: Murray State University, Texas A&M International University, Texas State University

Language: English

Topic: FinTech, Crowdfunding, Digital Finance

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: bronze

OpenAlex ID: W7128902174