A report by Dsruptiv reveals that electronic money accounts in the UK have surpassed traditional bank current accounts, with over 250 licensed electronic money institutions (EMIs) and nearly 1,000 payment institutions (PIs). The number of e-money accounts has reached 76 million, growing by 108% in two years, and holding £16.3 billion, up by 191% in the same period. Despite the industry’s rapid growth, consumers using EMIs and PIs are not protected by the Financial Services Compensation Scheme (FSCS), calling for greater transparency, regulatory focus, and improved consumer protection.
Facts
- Over 250 electronic money institutions (EMIs) and almost 1,000 payment institutions (PIs) are licensed by the Financial Conduct Authority (FCA) in the UK.
- The number of e-money accounts in the UK stands at 76 million, outnumbering traditional current accounts.
- £16.3 billion is held in e-money accounts, representing 7% of all non-interest-bearing bank deposits in the UK.
- 2.7 billion e-money transactions worth over £630 billion were conducted in 2022, marking a 169% increase in two years.
- Consumers using EMIs and PIs are not protected by the Financial Services Compensation Scheme (FSCS).
- The report calls for greater sector transparency, enhanced regulatory focus, and improved consumer protection in the EMI and PI industries.
- The UK financial services landscape has seen explosive growth in e-money and payments, requiring stakeholders to maintain trust in the sector.
