16 December, 2016

P2P Platform, Zopa, Lifts Limit on New Money Transfers

Earlier this month, P2P platform,  Zopa announced it will be placing a temporary limit on money transfers coming into the peer-to-peer consumer lender’s platform. Today, investors were informed that this limit has been lifted.

Due to queued funds, Zopa decided to restrict funds coming on to the P2P platform. One Zopa spokesperson announced:

We are not accepting any new money transfers. Any new money transfers into the platform will be refunded directly to your bank account.

Zopa cited simplicity and fairness as the key reasons as to why the restriction had been imposed. Existing funds on the platform would not be affected, the move simply prevented new money coming in, allowing Zopa to balance the investor and borrower demand.

It was clear that borrower demand had slowed, meaning investor capital was sitting in a queue awaiting allocation to borrowers.

Zopa investors have been informed that should they wish to transfer new funds, they should check their Zopa account before issuing a transfer. There is £4.2m of available space ready to be filled and Zopa expects this to take a matter of days, therefore it’s important investors check their account prior to making a transfer.

Zopa currently offers three investment products:

Zopa Access

Interest rate:  3.1% p.a

Provision fund protected:  Yes

Min investment:  £10

Zopa Classic

Interest rate:  3.9% p.a

Provision fund protected:  Yes

Min investment:  £10

Zopa Plus

Interest rate:  6.3% p.a

Provision fund protected:  No

Min investment:  £1,000

Visit Zopa Website

Zopa has a big year ahead, having announced it’s application for a banking licence in November. Investors will be keen to understand the new direction Zopa is taking and gain confidence in the queuing system which has seen big changes in the space of a single month.