Who is Apron?
Apron Payments Ltd (“Apron”) is an electronic money institution (“EMI”) (FRN: 1004915) authorised and regulated by the Financial Conduct Authority (“FCA”) to issue e-money accounts and provide payment services in the UK. The EMI license became operational from 14 January 2025.
How Apron keeps customer funds safe
Apron is required by law to use a process called Safeguarding to protect customer money.
We segregate the funds received for e-money from all other company funds. These safeguarded funds are held in specially designated customer accounts at credit institutions approved by the FCA.
As an EMI, we must hold an additional 2% of the total value of safeguarded customer funds in our own separate funds. This 2% acts as a protection mechanism to ensure enough funds are available for an orderly business wind-down and the return of customer funds, if necessary.
Where is money safeguarded?
In line with FCA Safeguarding Rules, all Apron customer funds subject to processing are kept in a separate Safeguarded Account with a chosen safeguarding bank, entirely separate from Apron's own company funds. Apron deposits the value of all e-money issued to customers with top UK banks for this purpose.
Safeguarding processes are subject to an independent external audit annually.
What is the FSCS, and is it applicable to Apron?
The Financial Services Compensation Scheme (FSCS) is an independent organisation that pays compensation if authorised firms fail. It protects bank deposits up to a maximum of £120,000, or £240,000 (£120,000 per person) for a joint account, in the event of a bank failure.
The FSCS scheme only applies to certain institutions, such as banks, and its protection does not extend to electronic money institutions (EMIs) such as Apron. However, as mentioned, our safeguarding requirements mean that all customer money held at Apron, regardless of the amount, is segregated from all other funds that we hold and cannot be used for any other purpose.
So while the FSCS scheme does not cover e-money or Apron, the regulatory requirements detailed above offer protection for the entire balance of customer funds.
What would happen in the event of Apron or safeguarding bank’s insolvency?
In the event that Apron becomes insolvent, your funds are separate from the funds of operational funds of Apron and held with our safeguarding bank. Therefore, the accounts will not be affected. As a result, creditors of Apron (other third parties that are owed money from Apron) are not able to make a claim against safeguarded funds, and this would not affect your entitlement to your funds.
In the event that Apron’s safeguarding bank fails, the FSCS will protect your money up to £120,000 across your accounts (and any other accounts you hold via the safeguarding bank).
For more information on how to make a claim, please visit the FSCS Website.