Last update: October 7, 2026
No, P2P lending is not safe. It is riskier than savings accounts, cash and government bonds, because there is no deposit guarantee and borrowers, lenders and platforms can fail. It can still be a useful part of a diversified portfolio, if you keep it small.
I have invested in P2P lending since 2017. My Mintos account is worth €54,481 and has earned €27,893 in interest. I have also lost money: €498 is unrecoverable on Mintos, and my position in the Turkish lender Wowwo is still in recovery. This page explains where the risk comes from, with real cases.
Is P2P Lending Safe Compared to Other Investments?
The table compares P2P lending with the investments my readers ask about most. The key difference is protection: P2P lending has none of the guarantees that cover bank deposits.
| Investment | Capital Protection | Liquidity | Main Risk ⚠️ | Safer than P2P? |
|---|---|---|---|---|
| Savings account | Deposit guarantee up to €100,000 per bank | Immediate | Inflation erodes value | ✅ Yes |
| Cash | None needed | Immediate | Inflation erodes value | ✅ Yes |
| Government bonds | Backed by the state | High | Price falls when rates rise | ✅ Yes |
| Diversified ETFs | Assets held separately from the provider | High | Market crashes | Different risk, not lower return |
| Buy to let property | You own the asset | Low | Leverage, one asset, one city | It depends |
| P2P lending | Buyback guarantees, licence on some platforms | Low to medium | Lender and platform failure | |
| Single stocks, trading | Assets held separately from the broker | High | Volatility and emotions | ❌ No |
Is P2P lending safer than a savings account?
No. In the EU, bank deposits are covered by the deposit guarantee scheme up to €100,000 per person and per bank. Money invested in P2P loans is never covered. A savings account loses value to inflation, but it does not lose capital. Compare current rates in my list of high-yield savings accounts in Europe.
Is P2P lending safer than cash?
No. Products like Go & Grow allow daily withdrawals, so they look like cash. They are not. In a crisis, withdrawals depend on new investor money and on borrowers paying. I keep my emergency cash in a bank account, never in P2P.
Is P2P lending safer than ETFs?
Not safer, just different. A diversified ETF can fall 30% or more in a crash, but it does not default: the companies inside it do not all fail at once. A P2P loan pays a steady rate until the day the lender stops paying. My long-term core is in ETFs, as explained in my long-term ETF strategy.
Is P2P lending safer than real estate?
It depends. A first buy-to-let property bought with a large mortgage puts most of your wealth in one asset, in one city, with debt. A small P2P position spread across many loans can be less risky than that. A paid-off property is safer than P2P. For property loans, see my guide to real estate crowdfunding.
Is P2P lending safer than stock trading?
For most people, yes. Trading single stocks has been a passion of mine for years, and I know how much emotions cost. A long-term dividend portfolio can be safer than P2P, but it needs knowledge that most beginners do not have yet.
Where the Risk in P2P Lending Comes From
P2P risk has four layers. Each layer can fail on its own, and each needs a different protection. Most investors look only at the first one.
- Borrower risk: the person or company stops paying. A buyback guarantee moves this risk to the loan originator.
- Loan originator risk: the lending company fails, and the buyback fails with it. This is what happened with Wowwo on Mintos.
- Platform risk: the platform closes or misuses client money. A MiFID II or ECSP licence reduces this risk through central bank supervision.
- Country and currency risk: a crisis, sanctions or a devaluation stops repayments across a whole market.
Does a Licence Make a P2P Platform Safe?
A licence makes a platform safer, not safe. Mintos, Debitum and Twino hold a MiFID II investment firm licence in Latvia. If a licensed firm fails to return client assets, the Latvian investor compensation scheme covers up to €20,000.
A licence does not cover loan defaults. If a borrower or loan originator stops paying, the loss is yours. Platforms like Go & Grow, PeerBerry and Robocash have no investment licence at all. The full list is in my P2P platform comparison table.
P2P Lending Risk During a Crisis: What Really Happened
P2P lending has now been tested by several crises. When I first wrote this page in 2019, I said the real test would come with the next downturn. Since then the sector has lived through a pandemic, a war with sanctions, an inflation shock and a property slump.
Envestio, 2019. In March 2019 I published one of the most critical Envestio reviews online. The returns were too high and the data did not add up. Envestio collapsed at the end of 2019, and investors lost their money.
Wowwo, 2021. A Turkish lender on Mintos, earning in lira and paying investors in euro. When the lira fell, it stopped paying. Mintos suspended it on December 17, 2021, with about €18.5 million owed. I hold part of that loss. I missed the warning sign because I was distracted by other investments.
Sanctions, 2022. Lenders linked to Russia stopped paying. Kviku Finance froze investor money, and Twino still has about €1.9 million frozen in Russia.
Property slump, 2023 to 2025. Estateguru suffered losses in Germany and Finland. I had kept my exposure to both markets very low, so the damage to my portfolio stayed small.
What survived. Go & Grow has paid investors for 17 years, through all of these events. Mintos survived thanks to its 60+ lenders across many countries. The pattern is clear: diversification and age matter more than the advertised rate.
How I Keep P2P Lending Under Control
- I keep P2P below 20% of my total assets. The core of my wealth is in ETFs and bonds.
- I spread money across countries and lenders, not across the highest rates. This rule has worked on Mintos and on Estateguru.
- I prefer licensed platforms: Mintos and Debitum hold a MiFID II licence.
- I avoid currency mismatch: the lesson from Wowwo.
- I distrust perfect records. Real lending produces some defaults. A platform with zero losses on paper makes me more careful.
My current picks, with licences checked, are in my guide to the best and safest P2P lending platforms in Europe.
My Doubt About P2P Lending
I have an ethical doubt about P2P lending, and I prefer to say it openly. In some countries consumer credit is extreme. Very high rates are often paid by borrowers with low financial literacy.
This is one more reason why I prefer business loans and diversified marketplaces, and why P2P stays a small part of my wealth.
P2P Lending vs P2B Lending
P2B platforms lend to businesses instead of consumers. They often advertise higher returns. Higher returns usually mean higher risk: Envestio was a P2B platform.
Business lending can work when the platform is licensed and transparent. My pick for business loans is Debitum, which I hold since 2019. Read my Debitum review.
⚠️ Disclaimer: P2P lending is a high-risk investment. Loans may default and platforms can fail. Returns are not guaranteed. This is my personal experience, not financial advice. Read the full disclaimer.
FAQ: Is P2P Lending Safe?
Is P2P lending safe?
No. P2P lending is a high-risk investment. Money in P2P loans is not covered by the deposit guarantee scheme, and borrowers, loan originators and platforms can fail. Diversification and small position sizes reduce the risk, but never remove it.
Is P2P lending covered by the deposit guarantee?
No. The EU deposit guarantee covers bank deposits up to €100,000. P2P loans are investments, not deposits. On MiFID II licensed platforms, the investor compensation scheme covers up to €20,000 only if the firm fails to return your assets, not for loan defaults.
Can you lose all your money in P2P lending?
Yes, on a single platform. Envestio investors lost their money in 2019. Spreading money across several licensed platforms, many loan originators and many countries makes a total loss very unlikely.
Is a buyback guarantee safe?
Only as safe as the loan originator behind it. If the lender fails, the buyback fails too, as with Wowwo on Mintos in 2021.
How much should I invest in P2P lending?
I keep P2P below 20% of my total assets. Your number depends on your age, income and other assets. I am an investor, not your financial advisor.
Which is the safest P2P platform?
In my view, Mintos in 2026: it holds a MiFID II licence and works with 60+ loan originators. See my full ranking of the best P2P lending platforms.
Wow, that was a excellent explanation.
Very interesting points
I’m just starting in this market, but the very first thing that I though was how it would be in a crisis…
I believe it will be a very strong movement… we can have a lot of loss, due to people who don’t pay the loans. By the other hand, we can have a need for money and probably the loans from the regular banks will be much higher than now, what would lead people to P2P alternative…
Anyway, thank you for the awsome content!
Sorry to say but comparing P2P to realestaty as you did is bullshit. Or we talk about investing the money we posses or the money we have to borrow. Then please if you invest money from loan into realestate compare it to money from loan investet into P2P (some people do it) and for example Grupeer or Envestio. Now we have proper comparison.
I’m afraid I don’t agree. The title of the post is “a daring comparison” so the comment should refer to what is in the article and the limits of this comparison. This is why the word “bullshit” may not be as appropriate as you think. Moreover, I feel real pain to know that someone is so confident to borrow money to invest it. There are many simple and safer ways to invest money one doesn’t have, but it requires skills.
Peer to peer lending (using the right tools and the right settings) is safer than real estate for me in one specific case, when I need a big mortgage to invest. In that case, the chances I get the wrong deal or that my money get stuck for ages is very high. To buy the first home is not an investment.
Envestio was not sustainable for me already in march 2019.
Agree. Even if these asset classes are not comparable.
I know there is risk but what can I do^? Money in the bank (at least in my bank) is dead.
I’ve started p2p investing after reading your Mintos review. My overall balance is still positive. Of course some lending companies are not performing but what can we do? I don’t know other fast way of investing and the stock market was a nightmare for me.
sal, I agree 100% with your comments/observations/evaluation .Thanks and keep writing. I am very invested in p2p and I like it
Thank You Joseph!