Yes, I'm sceptical too of its advertised benefits, that's why I wanted to start this conversation. Zopa has been going on for a few years now. I remember hearing a BBC interview with its creator back in 2008. So it's not really a new idea any more. However this year they seem to have changed their service. If I understand it right, all their lending is now safeguarded by a pot of money to cover any bad debt. So technically there's a lot less risk than before, when lenders chose their interest rates and the markets they wanted to lend to. The way this particular site seems to work is that the website spreads your money across many borrowers to reduce the risk. You don't seem to have control over who you actually lend to though. Other sites may be different. The loans are personal, anyone can request a loan for personal use, so not like kickstarter projects, I don't think.