P2P lending is a form of lending where third party, typically a bank, is cut out of the equation, allowing people to directly engage in credit agreements. P2P-lending emerged with the advent of internet and has seen a rapid growth ever since.
Practicability and better interest rates than traditional loans make P2P lending an attractive form of financing for people both in developing and industrialized world. Since 2014 through 2016, the value of global P2P lending value has risen seven folds, from 9 billion to 63 billion USD. By 2050 the value is expected to hit a one trillion ceiling.
P2Pay was founded by Muhammad Wajahat Ali to revolutionize the P2P lending market by leveraging Blockchain technology. It is a method of debt financing that enables individuals to borrow and lend money without any financial institution as an intermediary.
The P2P online platform displays the profile of the borrower. Investors can assess these profiles to determine if the risk of investment is worth it or not. The platform is targeted towards entry level as well as advanced lenders.
How It Works
- Loan Process as Borrower: When a borrower requests funds they’re sent to 3rd party verifier. Once their identity and credit score is revealed, P2Pay allows the loan request to show on the platform.
- Repayment of loan: When it’s time to repay lender, the borrower sends fund to the lender’s hot wallet. P2Pay takes their fee of 1.25% then sends remainder of funds over to lender.
- Loan process as lender: When a lender submits a loan contract, they must fill out application. A contract request is sent to validate balance followed by a payment of a 0.25% listing fee. Once validated, contract is available for borrowers to apply.
- Default loan process: When a borrower defaults on a loan, it’s sent to their debt buy back program. Depending on the borrowers credit score, the lender will receive a portion of his loan back.
- P2Pay Beta scoring process: Before releasing the real platform, P2Pay has a temporary fix in to the scoring process. One receives a credit score and advance through the ranks with loans completed. Defaulting on a loan lowers a score by 2 grade points.
P2pay ICO Token Dynamics
A total of 21 million tokens will be in the supply. However, only 14,070,000 tokens will be in circulation and remainder of the tokens will be held for one year. All tokens not sold during the ICO will be held for one year and 25% of the reminder will be distributed per year to token holders.
Distribution of Funds:
- 30% is reserved for research and development.
- 27% will be reserved for future development of the platform.
- 20% is reserved for marketing and user acquisition costs.
- 10% goes to the community who have help build the product and those who were involved from the early stage.
- 8% is reserved for the bounty program.
- 5% goes for the legal fees accumulated in the company building process.
P2pay ICO Conclusion
P2Pay is here to revolutionize lending, cutting out banks. They are paving the way for altcoin wallets to allow instant liquidation to all major currencies across the world and protecting their clients who enter into short term-high rates loans from the credit marketplace. They will bring ease of access to lenders and borrowers.
You can find more about the product or their coins on http://p2pay.io/. P2Pay Beta is live now and more details is available on their website.