Mercuryo takes steps to protect eligible customer funds in accordance with applicable safeguarding requirements.
Electronic money and payment services are provided by Monetley LTD (Mercuryo), an Electronic Money Institution (EMI) authorised and regulated by the UK Financial Conduct Authority (FCA). Monetley LTD's FCA Reference Number is 900921.
As an EMI, Monetley LTD is required to safeguard relevant customer funds. Safeguarding means keeping eligible customer money separate from the company's own operational funds so that it is protected if the company becomes insolvent.
This article explains how safeguarding works, how it differs from bank deposit protection, and how Mercuryo protects eligible customer funds.
Is Mercuryo a bank?
No. Monetley LTD (Mercuryo) is an Electronic Money Institution (EMI), not a bank.
An EMI can issue electronic money and provide payment services. Unlike a bank, an EMI does not operate as a traditional deposit-taking bank and does not provide the same range of banking services.
Because Monetley LTD is an EMI rather than a bank, different rules apply to how eligible customer funds are protected.
Is money held with Mercuryo protected by the FSCS?
No. Funds held with an Electronic Money Institution are not protected by the UK's Financial Services Compensation Scheme (FSCS) in the same way that eligible deposits held with a bank or building society may be.
Instead, eligible customer funds held by an EMI are protected through a process called safeguarding.
Safeguarding and FSCS protection are different forms of protection.
What is safeguarding?
Safeguarding is a regulatory requirement designed to protect eligible customer funds held by payment and electronic money institutions.
When funds are safeguarded, they are kept separate from the company's own operational money.
This separation helps protect customer funds if the EMI becomes insolvent because safeguarded funds are not intended to be treated as the company's own assets.
How does Mercuryo safeguard customer funds?
Mercuryo protects eligible customer funds by separating them from the company's operational funds and holding them in designated safeguarding arrangements in accordance with applicable regulatory requirements.
Safeguarding helps ensure that eligible customer money is identifiable and kept separate from money used for Mercuryo's own business operations.
Mercuryo also performs regular safeguarding reconciliations and monitoring to ensure that the appropriate amount of customer funds is safeguarded.
Where are customer funds safeguarded?
Eligible customer funds are held through designated safeguarding arrangements with an authorised credit institution.
Mercuryo regularly reviews its safeguarding arrangements and monitors safeguarding risks as part of its regulatory obligations.
When does safeguarding apply?
Mercuryo's safeguarding obligations apply when relevant customer funds are received and continue while those funds are required to be safeguarded.
Depending on the payment or service involved, safeguarding may end when the funds are:
- paid to the intended recipient;
- returned or paid to the customer; or
- transferred to another eligible payment service provider or electronic money institution.
The exact safeguarding treatment may depend on the service being provided and the nature of the funds involved.
What happens to safeguarded funds if Mercuryo becomes insolvent?
Safeguarding is designed to keep eligible customer funds separate from Mercuryo's own funds if the company becomes insolvent.
This means safeguarded customer funds should be identifiable separately from the company's own assets and available for distribution to eligible customers through the applicable insolvency process.
However, safeguarding is not the same as FSCS protection. The return of funds following the insolvency of an EMI may take time, and applicable insolvency costs or other deductions may affect the amount ultimately returned.
Who regulates Mercuryo's electronic money and payment services?
Monetley LTD, trading as Mercuryo, is authorised and regulated by the Financial Conduct Authority (FCA) as an Electronic Money Institution.
Company number: 10978538
FCA Reference Number: 900921
This authorisation allows Monetley LTD to issue electronic money and provide payment services subject to applicable FCA requirements.
You can learn more about the FCA's safeguarding requirements for payment and electronic money institutions on the FCA website:
Safeguarding requirements for payment institutions and electronic money institutions
What is the difference between safeguarding and FSCS protection?
The key difference is that Mercuryo safeguards eligible customer funds but does not provide FSCS deposit protection.
Banks generally protect eligible deposits through the Financial Services Compensation Scheme, subject to the scheme's eligibility requirements and limits.
Electronic Money Institutions such as Monetley LTD instead follow regulatory safeguarding requirements designed to keep eligible customer funds separate from their own money.
Still have questions about safeguarding?
If you have questions about how your funds are protected or whether safeguarding applies to a particular Mercuryo service, please contact Mercuryo Support.
Our Support team will be happy to assist you.
Here you will find information about how we protect your money held with us.
Please read the information carefully and do not hesitate to contact us if you have any questions!
Monetley LTD (herein referred to as Mercuryo) is a non-banking payment provider authorised to issue electronic money and provide unrelated payment services to its customers; in which case, we are considered an Electronic Money Institution (EMI). In the UK, we’re authorised and regulated by the Financial Conduct Authority (FCA) and in the EU we are regulated by the European Central Bank (ECB). Within the EU there are also national regulators for individual countries responsible for the licensing and supervision of EMI’s.
We have many responsibilities, but one of the most important elements (alongside being a legal obligation) is protecting your money and keeping it safe. Here are some frequently asked questions (FAQ’s) in relation to our safeguarding responsibilities.
How is Mercuryo different from a bank?
The main difference between Mercuryo, an EMI, and a bank is that an EMI focuses on issuing electronic money and providing payment services like e-wallets, prepaid cards, and online payments, but cannot offer loans or interest-bearing accounts. In contrast, a bank provides a full range of financial services, including lending, deposit accounts, and credit, which distinguishes it from EMIs.
When your money is held by a bank, your money is protected under the Financial Services Compensation Scheme (FSCS) in the UK or the European Deposit Insurance Scheme (EDIS) in the EU. However, because Mercuryo is not a bank your money is not protected by either of these bodies. Nevertheless, Mercuryo must comply with specific safeguarding requirements to protect customer funds.
How does Mercuryo protect customer funds?
Mercuryo are required to protect your funds in case we face financial insolvency. Mercuryo does this via segregating your funds from Mercuryo’s operational funds, ensuring customer money is kept in separate accounts (Safeguarding accounts). A safeguarding account is used for the storage of your funds in case Mercuryo were to go bankrupt or face insolvency. Having this safeguarding account ensures your funds are protected and are not treated as part of Mercuryo’s assets. A safeguarding reconciliation of customer funds is completed daily (Mon-Fri).
Where is money safeguarded?
Your money is deposited into a safeguarding account held at an authorised credit institution – currently Incore Bank AG, which is a member of the European System of central banks. We keep sufficient portion of money to satisfy all customers claim for the money owed.
Mercuryo's safeguarding obligations begin as soon as we receive your money and remain in effect as long as the money is held with us. These obligations end when the money is either paid out to the intended recipient (payer or payee) or transferred to another electronic money institution or payment service provider.
Safeguarding risk monitoring is regularly conducted, as well as regularly revising any safeguarding issues is they arise.
Who regulates Mercuryo?
Monetley LTD (Mercuryo) (Reference Number: 900921, registered company number 10978538) is licences as an authorised E-Money Institution (EMI) and regulated by the Financial Conduct Authority (FCA). This enables Monetley LTD (Mercuryo) to issue e-money to its customers, hold customer funds in safeguarded accounts and provide payment services to customers.
For further information on the FCA regulatory requirements regarding FCA authorised firms safeguarding obligations: https://www.fca.org.uk/firms/emi-payment-institutions-safeguarding-requirements
In case of any questions or further need to understand funds held with compensation mechanisms, please contact us by sending your questions to our Customer Support by using the chat in the bottom right-hand corner.
