PhiliPay separates all client funds from its own company accounts and holds them in special safeguarding accounts with reputable and regulated UK and EU banks. These banks or credit institutions do not have any rights or claims over the money we safeguard, meaning they cannot use it for lending, investment, or cover any liabilities. In the unlikely event that PhiliPay became insolvent, these safeguarded funds would form a dedicated pool of assets, prioritised for repayment to our clients before any other creditors. This structure is designed to give clients peace of mind that their money remains safe and retrievable under all circumstances.

No, safeguarding is different from deposit protection schemes like the Financial Services Compensation Scheme (FSCS) that apply to banks. While banks insure deposits up to a certain limit, safeguarding ensures that 100% of client funds are kept separate from PhiliPay’s business funds and protected in dedicated safeguarding accounts. Unlike banks, PhiliPay cannot use or access these funds for business purposes, and they are held exclusively for the benefit of clients. This means that safeguarding offers a level of protection where the value of your funds is preserved in full, without any cap, ensuring transparency and security that matches our role as an EMI.

If PhiliPay were ever to become insolvent, the funds we hold on behalf of clients would remain fully safeguarded and separate from our company finances. These funds would form a special asset pool dedicated to our clients and would be returned to them before any other claims from creditors are considered. This is a key difference between an EMI like PhiliPay and other financial institutions, as our structure ensures client funds are not treated as business assets. While the administration process may take time, clients can be assured that their money is protected and not at risk of being lost to cover operational or creditor liabilities.

As an Electronic Money Institution, PhiliPay can only safeguard the funds that belong to its direct clients, not their customers. This means that while your business funds are fully safeguarded with us, your end customers’ money is not automatically covered by PhiliPay’s safeguarding framework. We encourage our clients to establish their own safeguarding processes and comply with regulatory standards when handling customer funds. Our role is to safeguard your money as our client, ensuring it remains protected, while supporting you in meeting your obligations to your customers through secure and transparent financial services.

PhiliPay’s safeguarding framework is built on strict regulatory requirements set by the UK’s Financial Conduct Authority (FCA) and equivalent regulators in the EU, combined with our own commitment to security and transparency. We only work with reputable, authorised banks and credit institutions to hold safeguarding accounts, ensuring funds are managed within trusted and highly regulated environments. Furthermore, PhiliPay itself has no rights over client funds, except where specified in our Terms and Conditions, which guarantees that your money remains yours at all times. By prioritising compliance and adopting robust internal controls, we make safeguarding not just a legal requirement, but a core principle of how we operate.

By safeguarding your funds, PhiliPay provides your business with a high level of financial security that supports both operational confidence and customer trust. Knowing that your money is protected allows you to focus on growth, international payments, and foreign exchange conversions without worrying about risk exposure. Safeguarding also demonstrates to your partners and clients that you are working with a trusted EMI that prioritises regulatory compliance and financial integrity. This helps strengthen your reputation, as you can confidently assure your stakeholders that their payments and conversions processed through PhiliPay are underpinned by the highest standards of fund protection.