I don't know why everyone seems to think its young kids using their parents money to go to Pay2fly?
If you look at these schemes majority is done by guys and sometimes girls in their late 20's early 30's possibly 40's because they had to save the money or its a late career change.
If you consider CTC and OAA then I agree, majority is the parents money.
If you take Lion Air for example, they were expanding beyond there means and throwing money at planes which required crew. Not a lot of people can afford to be pilots in Indonesia and due to its corruption money could be made using p2f.
The plan was for expats to fill the seats till the holding pool of cadets grew enough.
The DGCA doesn't regulate a companies expandsure, unlike the EU, where if the company can not hold standards in the departments and hold enough reserve money in the bank then expandsure will come to a holt or slowed down.
The theory of p2f is eroding TC's is a bit ludicrous seeing as the terms and conditions in places like Indonesia are so low you wouldn't even consider it even if they were paying you.
P2f was a reflection of the economy and a gap in a desperate market and someone decided to capitalise it for their own gain. When the market picks up these schemes will die out.