The E-Money Directive or the ''electronic money directive'' (2009/110/EC, originally 2000/46/EC) regulates electronic payment systems in the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
. The aim is to enable new and secure
electronic money
Digital currency (digital money, electronic money or electronic currency) is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet. Types of digital cu ...
services and to foster effective competition between all market participants.
As per Article 2(2) of Directive 2009/110/EC, “e-money” means “electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transaction, and which is accepted by a natural or legal person other than the electronic money issuer”. e-money is “technically neutral” (Article 7) and intended to serve as an “electronic surrogate for coins and banknotes” (Article 13). The European Commission describes e-money as a "digital alternative to cash". The European Central Bank accounts for e-money as "overnight deposits".
Because electronic money is technically neutral, it can be issued on different media including
prepaid cards
A stored-value card (SVC) is a payment card with a monetary value stored on the card itself, not in an external account maintained by a financial institution. This means no network access is required by the payment collection terminals as funds ...
and
electronic wallets. In 2019, Monerium became the first company authorized to issue e-money on blockchains.
According to
PayPal
PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper ...
, UK, "PayPal enables individuals and businesses to send and receive electronic money online".
Revolut
Revolut is a British financial technology company that offers banking services, but did not have a UK banking licence. Headquartered in London, it was founded in 2015 by Nikolay Storonsky and Vlad Yatsenko. It offers accounts featuring currency ...
, UK, is "authorised by the Financial Conduct Authority under the Electronic Money Regulations". And
Wise_(company)
Wise (formerly TransferWise) is a London-based financial technology company founded by Estonian businessmen Kristo Käärmann and Taavet Hinrikus in January 2011.
History
Wise was founded by Taavet Hinrikus (Skype's first employee) and fi ...
, UK, is also "authorised by the Financial Conduct Authority under the Electronic Money Regulations".
See also
*
Payment Services Directive
The Revised Payment Services Directive (PSD2, Directive (EU) 2015/2366, which replaced the Payment Services Directive (PSD), Directive 2007/64/EC) is an EU Directive, administered by the European Commission (Directorate General Internal Market) t ...
*
Digital currency
Digital currency (digital money, electronic money or electronic currency) is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet. Types of digital cu ...
References
External links
Directive 2009/110/EC on the taking up, pursuit and prudential supervision of the business of electronic money institutions(given 16 September 2009)
Payment systems
Digital currencies
Banking in the European Union
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