E-Money Directive

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.

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".<ref>{{cite web|url=https://ec.europa.eu/info/business-economy-euro/banking-and-finance/consumer-finance-and-payments/payment-services/e-money_en |title=E-money |access-date=22 August 2022 |publisher=European Commission}}</ref> The European Central Bank accounts for e-money as "overnight deposits".<ref>{{cite web|url=https://www.ecb.europa.eu/stats/money_credit_banking/electronic_money/html/index.en.html |title=E-money |access-date=22 August 2022 |publisher=European Central Bank}}</ref>

Because electronic money is technically neutral, it can be issued on different media including prepaid cards and electronic wallets.<ref>{{Cite web|title=E-money {{!}} Electronic Money Institution {{!}} Licencing & Compliance {{!}} UK|url=https://www.buckinghamcapitalconsulting.com/authorised-emi-uk|access-date=2022-06-09|website=BCC UK|language=en}}</ref> In 2019, Monerium became the first company authorized to issue e-money on blockchains.<ref>{{cite news |last=Billing|first=Mimi |url=https://sifted.eu/articles/monerium-challenges-facebooks-coin/ |title=Monerium gets licence to issue e-money on blockchains |date=18 June 2019 |work=Sifted |access-date=14 January 2024 }}</ref> By mid-2024, blockchain-based spending accounts linked to Visa debit cards were available in Europe for initial customer testing.<ref>{{cite news |url=https://www.finextra.com/pressarticle/100941/gnosis-pay-partners-visa-to-connect-web3-ecosystems-with-traditional-payments |title=Gnosis Pay partners with Visa to connect Web3 ecosystems with traditional payments |work=Finextra |date=28 May 2024 |access-date=14 January 2025}}</ref><ref>{{Cite web |title=Blockchain Development Services |url=https://evacodes.com/blockchain-development-services |access-date=2025-09-10 |website=EvaCodes |language=en-US}}</ref>

According to PayPal, UK, "PayPal enables individuals and businesses to send and receive electronic money online".<ref>{{cite web|url=https://www.paypal.com/uk/webapps/mpp/ua/servicedescription-full#2 |title=What is the PayPal Service? |date=28 March 2022 |publisher=PayPal}}</ref> Revolut, UK, is "authorised by the Financial Conduct Authority under the Electronic Money Regulations".<ref>{{cite web|url=https://www.revolut.com/money-transfer/ |title=International money transfers |access-date=4 September 2022 |publisher=Revolut}}</ref> And Wise_(company), UK, is also "authorised by the Financial Conduct Authority under the Electronic Money Regulations".<ref>{{cite web|url=https://www.wise.com |title=Wise |access-date=4 September 2022 |publisher=Wise}}</ref>

==References== {{Reflist}}

==External links== *[http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32009L0110&from=EN Directive 2009/110/EC on the taking up, pursuit and prudential supervision of the business of electronic money institutions] (given 16 September 2009) *[http://ec.europa.eu/finance/payments/emoney/index_en.htm E-money - European Commission]

Category:Payment systems Category:Digital currencies Category:Banking in the European Union