We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,258 News Articles

Credit crunch kills off US branch of Zopa.com

Web 2.0 loan site no longer lending in the US

As global markets continue to dive, Silicon Valley is starting to batten down the hatches. For at least one company, however, the economic downturn is already having major impact, as Web 2.0, peer-to-peer loan site Zopa has announced that its US-based operations will cease.

While the company was never able to roll out its peer-to-peer microlending model in the US due to regulatory issues, it still maintained a microloan function with US credit union partners, who will now assume the accounts of US-based Zopa users. According to the company blog, operations in the UK, Italy, and Asia will not be impacted by the US withdrawal.

As P2P-Banking.com notes, the irony is not lost on Zopa that the failure of the same US regulations that prohibited the company from rolling out a peer-to-peer model in the US have resulted in the current economic climate, and the company's CFO took the opportunity to point out the company's success in European and Asian markets. The company's eventual success, however, will depend on those markets escaping a domino effect started in the country they are abandoning.

Visit Broadband Advisor for the latest internet news, reviews, tips & tricks

Visit Business Advisor for the latest business IT news, reviews, tips and tricks - plus sign up for our unique and FREE business IT newsletter


IDG UK Sites

Windows 10 launch event as it happened: Read our Windows 10 launch live blog - find out first as...

IDG UK Sites

Windows 9 and the death of the OS as a must-have product

IDG UK Sites

Video trends: 4K is here – HDR video, VR and 3D audio is coming

IDG UK Sites

Best iPhone 6, iPhone 6 Plus deals: iPhone 6, iPhone 6 Plus tariffs, contracts and prices UK