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Safeguarding your money

How your funds are protected

PayNovo operates as a consultancy and works in partnership with trusted, fully licensed UK and EU partners to deliver regulated payment and e-money services. All regulated activities are provided exclusively by these authorised partners in accordance with applicable regulatory requirements. All customer funds are safeguarded by our regulated payment partner, Gemba Finance Ltd, in line with applicable payment services and e-money regulations.

In simple terms: when you send money to us for a payment, those funds are held in safeguarded client accounts at our regulated partner Gemba Finance Ltd, separate from operational money, until they are paid out to your beneficiary.
Safeguarded client funds illustration
Safeguarded funds are kept in segregated client accounts at authorised institutions, away from operational funds.

What “safeguarding” means for you

When you fund a payment via PayNovo, the money is received by our partner Gemba Finance Ltd, which is authorised and regulated as an Electronic Money Institution. Your money is treated as relevant funds for payment services and is safeguarded accordingly.

  • Your funds are held in designated client accounts, separate from the partner’s own operational money.
  • Safeguarded funds are not used for lending, investment, or to run the business.
  • If PayNovo or our partner were to become insolvent, safeguarded funds are protected from other creditors.
  • Safeguarding applies until your funds have been paid out to your chosen payee’s account.

How our partner safeguards funds

Our partner maintains dedicated safeguarding accounts with authorised credit institutions. Incoming funds are monitored, classified as relevant funds, and segregated quickly. Daily reconciliations are performed to ensure that the balance of safeguarded funds matches client records.

Governance and oversight processes are in place to ensure that safeguarding methods, banks used and controls are reviewed regularly, and that any discrepancies are identified and resolved promptly.

How it works

From deposit to payout

  1. You fund a payment. You send money to the account details provided to you during onboarding.
  2. Funds are safeguarded. Our partner allocates your funds as relevant client money and holds them in safeguarded client accounts.
  3. We execute your payment. Once your payment instruction is confirmed, your safeguarded funds are used to fulfil the payment to your beneficiary.
  4. Safeguarding ends on payout. When funds reach your beneficiary or their payment provider, the safeguarding protection for that payment ends.
Flow of safeguarded funds from client to beneficiary
A clear flow from your bank to safeguarded client accounts at our partner, and from there to your beneficiary.

What is covered

  • Funds received for the purpose of executing payment transactions on your behalf.
  • Funds held temporarily while a payment is being processed or an FX conversion is being completed.
  • Balances that have been identified as client “relevant funds” and recorded on our partner’s client ledger.

What is not covered

  • Fees, charges and any profit or interest belonging to the partner or to PayNovo.
  • Funds that have already been paid out to your beneficiary’s account — once paid out, safeguarding ends.
  • Any funds that are not related to payment services (for example, margin for FX forwards, if applicable).
Important: Safeguarding is different from a deposit protection or compensation scheme. Safeguarding is designed to protect your funds by keeping them separate from operational money and by applying strict reconciliation and oversight processes, so that in the unlikely event of insolvency, safeguarded funds can be identified and returned to clients in priority to other creditors.
Need more detail?

Questions about safeguarding

If you would like more information about how safeguarding works for your account or a particular payment, our team can walk you through the process step by step.

Contact us if you need written confirmation of how your funds are safeguarded, or if you have concerns about a specific payment.
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