PSD Bond

PSD Bond is the first and currently only insurance contract to meet the safeguarding requirements of the revised Payment Services Directive (PSD2) and second Electronic Money Directive (EMD). It was launched mid-2019 in the United Kingdom and has since been accepted for use in Lithuania and Ireland.

Pioneered and offered exclusively by Protean Risk, PSD Bond is underwritten by major insurers, including Lloyd's of London, and all providing Standard & Poor’s or equivalent ‘A’ rated financial security.  

It is being used by an increasing number of APIs and EMIs, including some of the world's largest and well-known brands. With a credible and acceptable insurance option on the table, payment service providers are well advised to re-examine their safeguarding alternatives. 

Key contacts

Tristan Sargeaunt, Dip CII
Managing Director

020 3763 5352
[email protected]

Hugo Thorp
Team Leader - Fintech & Payment Services

020 3763 5343
[email protected]

Fergus Bracher, Cert CII
Account Manager

+44 (0)20 3763 5364
[email protected]


New enquiry

We are members of the Emerging Payment Association and the Association of Foreign Exchange and Payment Companies:

 AFEPEPA Full Logo smaller JPG


Overcoming key challenges

Double safeguarding 

Segregation is difficult to do properly and efficiently where there is uncertainty or complexity associated with the payment flow e.g. involving banks, agents or distributors. In some cases firms are having to tie up even more cash than they need to – maybe twice what they need to. 


As the payments and E-money universe becomes more complex, it is becoming harder to know which funds to segregate and for how long – with 100% confidence. Examples can be found in areas such as foreign exchange and involving non EEA balances.

"Firms need to consider safeguarding as one of their key controls and make sure they are doing it correctly, so that consumers are protected. Using insurance can help them get it right in some of the more difficult areas and allow them to improve capital efficiency especially when used to complement segregation."

John Burns
Technical Director, Payment Services
Compliancy Services Ltd

Request a call back

Benefits of PSD Bond

Benefits of PSD Bond

  1. Reduces operational costs
  2. Improves capital efficiency
  3. Alleviates regulatory risk – smooths over some of the more challenging aspects of segregation.
  4. Simplifies compliance – solves some of the grey areas
  5. Retains flexibility – can move to other options in future
  6. Strengthens consumer protection – transferring risk to insurance underwriters
  7. Enhances regulatory compliance – the underwriting due diligence process

Our guide uses real life case studies to give insight into where and how PSD Bond can make a difference.

Download now

Latest thinking

Protean Risk joins AUKPI
11 MAY
News / by Tristan Sargeaunt, Dip CII
Protean Risk joins AUKPI

AUKPI represents Payment Institutions regulated by the FCA

Association of Foreign Exchange and Payment Companies
21 OCT
News / by Tristan Sargeaunt, Dip CII
Association of Foreign Exchange and Payment Companies

Protean Risk join AFEP

See more