Zopa is a UK-based peer-to-peer lending company launched in 2005 that allows individuals to directly lend and borrow money from each other without going through a traditional bank. It operates an online marketplace to connect lenders and borrowers, charging a 0.5% transaction fee to borrowers and a 0.5% annual servicing fee to lenders. Loans made through Zopa are legally binding agreements directly between the individuals, so funds are protected even if Zopa fails.