Segregated Accounts
Your funds held separate from paype's operating money. paype's business finances cannot touch your balance.
Segregated accounts — a custody structure in which customer funds are held in accounts entirely separate from an institution’s own operating capital.
What this means at paype
Your paype balance is held in segregated pooled accounts at correspondent banking partners. paype’s operating costs — payroll, infrastructure, everything — are funded from a completely separate set of accounts. The two pools do not intermingle.
The protection it provides
If paype encountered financial difficulty, your balance could not be used to cover paype’s debts. The segregation provides a contractual firewall between your money and paype’s money.
What it does not provide
Segregated accounts are not FDIC insurance. If the underlying correspondent bank were to fail, customer funds would be subject to that bank’s insolvency proceedings — there is no government deposit guarantee. This is distinct from a bank account, where each depositor is insured up to $250,000 by the FDIC.
paype is an MSB, not a bank. We disclose this clearly because honesty matters more to us than a marketing-friendly summary.