Magex Managed Payments Platform Powers ZOPA E-Wallets

Zopa, which is the brainchild of the founders of the online bank Egg, has recently launched its new loan exchange service in the UK. In short, Zopa, which stands for Zone Of Possible Agreement, acts as an exchange where credit worthy borrowers can be matched with willing lenders. All borrowers are credit-checked before joining the Zopa service and only the top 40 percent of borrowers will be accepted as members categorised as either type A or type B. Zopa allows borrowers to borrow up to £15,000 and automatically matches them with lenders who have previously agreed to lend to borrowers in that category. Lenders are allowed to lend up to £25,000, but will never lend more than £200 to any one individual greatly reducing the risk of bad debt. The Zopa service is authorised by the Financial Services Authority and has been granted a credit licence under the Office of Fair Trading.