Payward Services Limited (“PSL”) is an Electronic Money Institution (an “EMI”) which is authorised and regulated by the FCA (FRN 1010381). PSL is not a bank and does not hold funds received from you as a deposit.

PSL is required to use a process called ‘safeguarding’ to protect the funds that you send to us. This means that the funds we receive for issuing e-money or executing payments are kept separate from any other funds that PSL may hold. We also cannot use them for any other purpose than the issuance of e-money or making payments for you.  

How is safeguarding different from FSCS protection given by banks?

As an EMI, PSL isn’t covered by the Financial Services Compensation Scheme (“FSCS”), the website of which can be found here: https://www.fscs.org.uk/. The main difference between FSCS protection and safeguarding is that the FSCS protection is covered by an independent statutory organisation, while safeguarding protection is provided by us. 

If a FSCS-protected firm were to fail, the organisation that covers the scheme is legally obliged to return your funds, but will only do so up to the maximum compensation amount (£85,000 per eligible person, per firm). If an EMI (like PSL) fails, then your claims will instead generally be paid from the safeguarded funds up to the total balance of your e-wallet. You should be aware that, if this did happen, then because FSCS protection will not apply: 

You might also want to consider the information that the FCA has published on its own website: https://www.fca.org.uk/consumers/using-payment-service-providers