E-Money_Directive
E-Money Directive
Regulation of electronic payments in EU
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 aim is to enable new and secure electronic money services and to foster effective competition between all market participants.
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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".[1] The European Central Bank accounts for e-money as "overnight deposits".[2]
Because electronic money is technically neutral, it can be issued on different media including prepaid cards and electronic wallets.[3] In 2019, Monerium became the first company authorized to issue e-money on blockchains.[4]
According to PayPal, UK, "PayPal enables individuals and businesses to send and receive electronic money online".[5] Revolut, UK, is "authorised by the Financial Conduct Authority under the Electronic Money Regulations".[6] And Wise_(company), UK, is also "authorised by the Financial Conduct Authority under the Electronic Money Regulations".[7]
