The money you hold in your Kroo account is protected through “safeguarding”, and not through the Financial Services Competition Scheme (FSCS). That’s because the Kroo card is an e-money product and not a bank account. It is issued by PayrNet Limited and uses Modulr FS Limited’s platform. Both of these companies are e-money firms authorised by the Financial Conduct Authority.

PayrNet and Modulr hold your money and follow a set of regulatory safeguarding rules to keep your money safe. These rules require them to place your money in separate and secure accounts. PayrNet and Modulr do not use your money for anything else: for example, they cannot use your money to pay their own staff salaries.

This means that in the unlikely event of PayrNet or Modulr becoming insolvent, you should get most, if not all of your money back, even if it takes a bit longer than it would with a bank.

To decide if this is the right level of protection for you, please visit the FCA website or get in touch if you have any questions.

Even though Kroo has recently been authorised as a bank, we are still working on setting up our banking operations, so we don’t yet offer bank accounts - see also Is Kroo a bank?.

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