Zopa allows individuals to lend and borrow money directly with one another, bypassing traditional banks as intermediaries. The company acts as a facilitator, matching borrowers with lenders and handling the administration of the loans.

Zopa is not a bank and does not hold a banking license. It is regulated by the Financial Conduct Authority (FCA) and is authorized to issue electronic money. Zopa has issued over £5 billion in loans and has over 500,000 registered customers.