When you send money to top up your account balance, AF Payments gives you the value to spend in your account (e.g. by making a transfer to another circle member). The money held in your account is known as ‘electronic money’ or ‘e-money’. While this may sound similar to what a bank does when money is received into a bank account, neither we nor AF Payments are a bank and therefore:
we do not take your money as a deposit to use for our own purposes or lend to other customers; and
your e-money is not covered by the FSCS.
Instead, to ensure your money is safe, your funds in your Bloom Money account are held and safeguarded by AF Payments in accordance with the Electronic Money Regulations 2011. This involves keeping your money separate from AF Payments' own money, ensuring that in the event of insolvency or financial difficulties, your funds remain secure and retrievable.