Is my e-money provider safe? How to confirm a licence and how funds are protected

An e-money provider is "safe" in a regulatory sense when it currently holds an EMI licence and safeguards customer funds as required. But safeguarding is not the same as deposit insurance: e-money balances are generally not covered by the UK FSCS or equivalent EEA deposit-guarantee schemes. Confirming the licence and understanding the protection are two separate steps.

Step one: confirm the licence is current

Look the provider up on the FCA Financial Services Register (UK) or the EBA EUCLID register (EEA) and check that its e-money status reads as currently authorised. A withdrawn or cancelled status means the firm is no longer licensed to issue e-money, whatever its app still shows.

Step two: understand what protects your money

• Safeguarding. Authorised and small EMIs must protect customer funds, typically by holding them in a segregated account at a credit institution or by covering them with insurance. If the EMI fails, safeguarded funds are intended to be returned to customers ahead of general creditors.
• Not FSCS deposit protection. A bank deposit in the UK is covered up to GBP 85,000 by the FSCS. E-money is a different product: it relies on safeguarding, not the deposit-guarantee scheme. The practical protection is real but works differently, and recovery can take time.

Knowing this distinction is the point. A licensed EMI with proper safeguarding is a legitimate way to hold and move money - it is simply not a bank account, and should not be assumed to carry the same guarantee.

This directory confirms each provider's current licence status and type against the FCA and EBA registers and shows when it was last verified, so step one is done for you. Step two - matching the product to your own risk tolerance - is yours.

Q: Is e-money covered by the FSCS like a bank account?

Generally no. E-money is protected by safeguarding rules, not by the FSCS deposit-guarantee scheme. Safeguarded funds are meant to be returned to customers if the firm fails, but this is not the same as the GBP 85,000 deposit guarantee that applies to banks.

Q: What does safeguarding actually do if my provider goes bust?

Safeguarded customer funds are held separately from the firm's own money - usually in a segregated bank account or covered by insurance - so they can be returned to customers ahead of the firm's general creditors. Recovery is not instant, but the funds are ring-fenced for you.

Q: How do I know my provider is safeguarding correctly?

You cannot audit it directly, but confirming the firm holds a current EMI licence is the necessary first step, because safeguarding is a condition of that licence. Check the status on the FCA or EBA register and watch for any change to a withdrawn or cancelled state.

This guide is informational and not legal or financial advice. Confirm any provider's status on the issuing regulator's register and read its safeguarding disclosures. Last reviewed: June 2026.