Is my money safe with a save now, buy later app?

It depends on the provider. Reputable SNBL providers hold savings at a partner bank or safeguard them as a licensed payment or e-money institution. Check who holds the money, whether deposit protection applies, and how quickly you can withdraw it.

Questions to ask

• Who holds the funds? A bank, an e-money institution or the app itself?
• Is the provider licensed, and by which regulator?
• Does deposit insurance apply, or are funds safeguarded in segregated accounts?
• Can you withdraw at any time, and how long does it take?
• What happens to your savings if the merchant goes out of business?

Deposit protection and safeguarding

Money held in a bank account may be covered by deposit guarantee schemes up to a limit. Money held as e-money is not covered by these schemes, but licensed institutions must keep customer funds separate from their own and protect them. Both models can be safe, but they protect in different ways.

Warning signs

Unclear terms, no license information, savings locked to one merchant without refund rights, or difficulty withdrawing.

What it means for payment operators

If your merchants partner with SNBL providers, the provider's licensing and safeguarding model matter. Reviewing these elements during partner onboarding, as with any payment provider, protects your merchants and their customers.