Member States or competent authorities must require payment institutions providing services listed in points (1)–(6) of Annex I and electronic money institutions (Article 2(1) of Directive 2009/110/EC) to safeguard all funds received for execution of payment transactions. Safeguarding is to be achieved either by (a) preventing commingling and, if funds remain held at the end of the business day following receipt, depositing them in a separate account in a credit institution or central bank (at the central bank's discretion) or investing them in secure, liquid low‑risk assets as defined by the home Member State competent authorities, and insulating them under national law against other creditors (notably on insolvency); or (b) covering the funds by an insurance policy or comparable guarantee from an insurer or credit institution outside the same group, for an amount equivalent to that which would have been segregated and payable if the institution cannot meet its obligations.

Where safeguarded funds are to be partly used for future payment transactions and partly for non‑payment services, the portion intended for future payment transactions must be subject to the safeguarding requirements. If that portion is variable or not known in advance, Member States may allow application on the basis of a representative portion reasonably estimated from historical data to the satisfaction of the competent authorities.