Safeguarding Policy

last updated: March 19, 2024

Safeguarding users' funds

Guavapay Limited ("Guavapay", "we", "us", or "our") is a Small Electronic Money Institution ("EMI") registered with the Financial Conduct Authority in the United Kingdom (FRN 900888).

Being an EMI, authorised under the UK Electronic Money Regulations and not a bank, means that FSCS protection does not apply to the client funds and we protect your funds differently than banks.

How are my funds protected by Guavapay?

As an EMI, we follow a process called 'safeguarding' which is required under applicable law and regulations.  
“Safeguarding” means that once we receive your money, we put it in a dedicated safeguarding account with an authorised credit institution. 
This means we ensure 100% of funds received in exchange for e-money are safeguarded upon receipt. These funds stay in these accounts until you spend it. 
Specifically, we segregate these funds from all other funds. They are not mixed with other funds we hold and cannot be used for any other purpose.
If Guavapay were to become insolvent, the claims of electronic money holders would be paid from the pool of funds held in the safeguarded account as a priority over all other creditors.

Is my money covered by the Financial Services Compensation Scheme?

No, it is not covered by this independent scheme that helps eligible customers get funds returned (up to a limit) if a covered firm fails.

Do I need to take any action?

No action is needed. We are publishing this statement to ensure you understand how we safeguard your funds.

Any other questions?

Please contact [email protected] if you have any additional questions.