Is my money (cash) held with an E-Money Service Provider covered by the Financial Services Compensation Scheme?

No. The Payment Services Directive and the 2nd E-Money Directive both specifically state that funds taken by Payment Institutions (PIs) and E-Money Institutions (EMIs) are not to be classed as deposits. As such, the Financial Services Compensation Scheme does not protect these funds in the event of the failure of the PI or EMI.