How Mangopay holds and safeguards funds within the wallet ecosystem

When a company is entrusted with holding money, it carries a responsibility close to that of a bank. From a regulatory point of view, holding money means having the right license, being closely supervised, and following strict rules that are there to protect customers. From a customer’s point of view, it comes down to trust that their money is available when they need it, and safe no matter what.

As a platform, you deal with multiple parties: users who pay through your platform, and users who earn from it. The movement and storage of those funds must happen in a secure and compliant environment. Mangopay helps you provide that environment. Our regulated infrastructure protects your users’ money by ensuring it is safeguarded, a practice distinct from how banks handle their clients' funds. As a regulated Electronic Money Institution (EMI), we're fully committed to safeguarding your platform users' money by following the required financial regulations.

Let's dive into the key aspects of how we keep your users’ funds safe, providing you with a comprehensive understanding of our practices and how we stand apart from other EMI-licensed companies.

Understanding safeguarding

Safeguarding is a regulatory requirement for all EMIs in the EU/EEA, as mandated by PSD2 and EMD2. This rule also applies in the UK, according to specific UK laws: the Electronic Money Regulations 2011 and Payment Services Regulations 2017. 

EMIs such as Mangopay are required to safeguard Relevant Funds, ensuring that appropriate and well-managed arrangements are in place to protect customer funds from the risk of EMIs becoming insolvent. 

Mangopay safeguards Relevant Funds by using the Segregation Method. This is the most commonly used approach and involves EMIs holding funds in a designated bank account with an authorized credit institution. This account, known as the 'Safeguarding Account', is set up just to protect users' funds and is not part of Mangopay's business assets. 

Here’s what that means for your platform’s users:

• Their money is kept separate from company funds. It’s not touched, not used for our operations, and not exposed if anything happens to us. In the unlikely event of insolvency, the money we’re safeguarding can’t be claimed by other parties.
• You don’t need to take any extra steps. Safeguarding is built in by default, so you can rest assured your users’ funds are protected from day one.

How Mangopay safeguards funds within the wallets

Mangopay’s wallet infrastructure is the foundation for secure, compliant fund management on your platform. Our wallets function as virtual money containers, enabling platforms to hold, move, and manage funds for both users and the business itself. As a Mangopay customer, you can trust that all funds held in these wallets are safeguarded in accordance with the EU and the UK regulations, as stated below. 

EU/EEA

When Mangopay provides you with payment services and/or e-money services, the funds are received by Mangopay. It's important to note that these funds are not considered deposits. This aligns with the status of other electronic money institutions and payment institutions across various EU/EEA Member States.

The law requires us to protect the funds through allowed safeguarding measures, primarily by segregating them into dedicated accounts, often referred to as safeguarding accounts, as described above.  

In the rare event of insolvency, bankruptcy, or a similar situation, the safeguarded funds remain distinct from Mangopay's assets or will be covered by a guarantee. Safeguarded funds cannot be used as collateral to cover our obligations or those of third parties, nor can they be seized by our creditors.

United Kingdom

In the UK, Mangopay is authorized and regulated by the Financial Services Conduct Authority (FCA) under the Electronic Money Regulations 2011 to issue e-money and provide payment services.

Just like in the EU and in accordance with PSD2 and EMD2, in the UK, Mangopay is required to safeguard users' funds by keeping them in a separate bank account, distinct from the company's funds. 

Licensed, regulated, and purpose-built for platforms

Holding an EMI license is table stakes for operating legally in Europe and the UK. But not every licensed provider is built to serve the complex needs of platform-based businesses.

Mangopay’s wallet infrastructure goes beyond compliance. It’s engineered specifically for platforms, where multi-party flows, fund segmentation, and real-time control aren’t nice-to-haves, but critical to running your business.

In today’s ecosystem, not all wallets are created equal.  Some providers focus narrowly on FX and treasury. Others offer basic balance tracking or currency holding for sellers. Few are designed to support both sides of your platform,  payers and payees,  with flexible, programmable money movement.

With Mangopay, you get:

• Dedicated wallets for every user, enabling storage, transfers, conversions, split payments, and more
• Support for advanced flows like cashback, loyalty, and vouchers, without custom dev work
• Funds held  for an unlimited period of time, and reused within your platform, driving long-term engagement and value
• Real-time control and full regulatory compliance, backed by our EMI licenses in the EU and UK

This infrastructure powers platforms like Vinted, ManoMano, Sorare, Malt, and many more, helping them scale faster, stay compliant, and create better experiences for their users.

If you want to learn more about how we safeguard funds, please feel free to contact us. 

Frequently Asked Questions

This section is especially relevant to users who make or receive payments on a platform powered by Mangopay. But as a platform, it’s equally important to understand how these protections work, so you can inform and support the users you serve.

How is Mangopay regulated?

Mangopay operates through two licensed entities to serve clients across the UK and the EU:

Mangopay U.K. Limited is authorised as an Electronic Money Institution (EMI) by the Financial Conduct Authority (FCA) in the United Kingdom. You can view Mangopay UK’s licence here. The FCA requires us to meet strict standards around fund safeguarding and to undergo regular, independent audits of our safeguarding processes.

Mangopay S.A., based in Luxembourg, is authorised as an EMI by the Commission de Surveillance du Secteur Financier (CSSF). You can view Mangopay S.A.’s licence here. The CSSF sets standards around our safeguarding operations and requires Mangopay S.A. to conduct periodic and independent audits of its controls.

How does Mangopay protect user funds? 

Users' funds remain protected in these accounts indefinitely from the moment we receive them until users clear them by requesting a payment transaction from their wallet, which they can do at any time. The funds are safeguarded from misappropriation and unauthorized use and aren't accessible by creditors, banks, or third parties. In the unlikely case of insolvency/bankruptcy or similar cases, users' funds remain separate and prioritized over other creditors. 

Is there a limit to how much of the funds are protected?

There are no limits or lower/upper caps. Unlike banks, which protect deposits up to a fixed amount £85,000 under the FSCS in the UK, or €100,000 under the Deposit Guarantee Scheme (DGS) in Luxembourg for individuals and small businesses, Mangopay’s safeguarding protection covers 100% of users’ funds. 

Do I need a business account to benefit from protections? 

Regardless of the type of platform user you are, business or individual, safeguarding is designed to protect your funds, and the measures taken are the same.  Your funds are in a secure and segregated account.

Is there any action I need to take to ensure funds are protected? 

Users don't need to take any action to benefit from this level of fund protection, and neither does the platform. We provide this information to offer complete transparency, ensuring all parties are fully aware of how funds are being safeguarded. If you have any questions, please don't hesitate to contact us.