P2P lending offers loans to the public with easy processes and terms. However,
the level of P2P lending disbursements is still lower than that of the banks. In addition, a
comparison of the number of users of P2P lenders and the productive age population of
Indonesia shows that there are still many people who do not use P2P lending. This paper
examines the factors that make Indonesians avoid P2P lending. This study used an online
survey approach for its data collection and structural equation modeling (SEM) to analyze
the data from 499 responses. The study found that the perceived threat from P2P lending
is influenced by its perceived severity, perceived susceptibility, and risk tolerance. This
perceived threat and social influences cause people’s avoidance motivation. This study
contributes to the fintech literature by providing empirical evidence on the avoidance of
P2P lending from the borrowers’ perspectives using the TTAT model. Other implications
are an input for regulators/governments to enforce the rules for user protection and input
for the P2P lending service providers to provide educational programs regarding the use
of P2P lending.