Purpose This study aims to investigate the strategic role of peer-to-peer (P2P) lending in enhancing financial inclusion and supporting small and medium enterprise (SME) financing in developing countries. It also explores the major regulatory challenges that constrain its scalability and trustworthiness. Design/methodology/approach A systematic literature review was conducted using the PRISMA framework, covering 42 Q1 and Q2 Scopus-indexed publications from 2018 to 2024. Findings P2P lending expands credit access for underserved populations and SMEs through technologies like blockchain, artificial intelligence and big data. Success cases in Indonesia, China and India demonstrate scalable models. However, persistent barriers include regulatory uncertainty, low digital literacy, data asymmetry and infrastructure limitations. This study also identifies a lack of empirical validation and limited attention to user experience and trust mechanisms in existing literature. Research limitations/implications The review highlights critical research gaps: insufficient comparative studies across regions, underexplored social trust dynamics and fragmented theoretical approaches. It proposes a multi-theoretical foundation combining the technology acceptance model, social capital theory, inclusive finance and regulatory technology to guide future research on inclusive fintech in emerging markets. Practical implications The findings offer actionable insights for regulators and fintech practitioners to improve regulatory clarity, enhance digital literacy and implement adaptive governance frameworks that foster innovation while protecting consumers. Originality/value This review offers an integrated framework connecting user adoption, social trust and regulation. By synthesizing insights from three major developing economies, it contributes to the growing literature on inclusive fintech and provides practical guidance for strengthening P2P lending ecosystems.
Laia et al. (2025) studied this question.