When you deposit money into Plum, it is held as ‘e-Money’ by our provider, PayrNet (a subsidiary of Railsbank). PayrNet holds this money for you in a your own e-Money account with the Bank of England 🏦
e-Money is safe-guarded in several ways:
- It must be kept in an individual account and not mixed with other money from other Plumsters
- It cannot be mixed with Plum or PayrNet’s own company money
- It cannot be lent out by Plum or PayrNet at any time
These three things are very important for your safety, because no matter what happens to either business, each individual account will be left completely intact and the money can be returned at any time ⚡️
What happens if Plum goes bust?
Aside from the mess caused by a bust Plum (sorry, we couldn’t resist!)... this would never compromise the safety of your savings 🤝
The safeguarding measures above mean your money can be returned to your bank account electronically using a real-time transfer.
They also prevent any of Plum's or PayrNet's creditors from claiming your money in the event that either business should go bankrupt.
Who checks my money is safe?
Plum is officially regulated by the Financial Conduct Authority (FCA), the UK’s financial watchdog as an Authorised Information Service Provider (AISP).
This basically means we must follow the Electronic Money Regulations (EMRs). You can find our details on the FCA website here.
PayrNet are also authorised as an Electronic Money Institution, with details also available on the FCA website.
How does e-money differ from money in a regular bank?
When you deposit money into a bank, the bank lends some of your savings to other customers. This is how a bank makes some of its money 💰
It also means your money is effectively 'at risk' if the bank goes out of business, and hence there is a need for insurance, covered by the Financial Services Compensation Scheme (FSCS), of up to £85,000.
As Plum is not a bank, and it does not lend out any of your money, it is not eligible for FSCS. You can read more about bank insurance and Plum here.
What technology does Plum use to keep my money safe?
We’re unashamedly a technology-first company, and that means we incorporate advanced security as standard.
We never store (or have access to) your bank login details and get read-only access to user transaction data, so in the unlikely event of a breach no money can be transferred out of bank accounts.
We use symmetric cryptography (AES) to store any sensitive data, state-of-the-art password algorithms and 256-bit TLS encryption to communicate between the browser and our servers.
We are also a registered data controller and always act in compliance with the Data Protection Act.
What can I do to make sure I use Plum safely?
As with any app that handles sensitive info, we’d recommend you connect to secure Wifi, turn off Bluetooth when not using it on your phone, and ensure nobody is looking over your shoulder 🙈
We recently added a ‘Privacy Mode’ setting to specifically help with that! Once enabled, it allows you to hide sensitive account balances from your app home screen. You can read more about this in our earlier blog post.
Or get the Plum app 👇Download Plum