Electronic Money License

Electronic money is something that most banking customers and online purchasers will be familiar.

Note, we are not talking about Cryptocurrencies, but electronic money. Electronic money (e-Money) can be defined as a digital form of cash since it has many of the characteristics of cash.

So, what is e-money? Customers buy the electronic equivalent of coins and notes.

The customer, in effect, has exchanged cash for another means of payment. Instead of using a debit card (which requires a bank account) or a credit card (which requires a contract agreement) the customer has purchased a non-cash means of payment, which can be used in much the same way as cash or other forms of card payment but without the requirement of third-party authorisation. e-Money can therefore be defined as monetary value as represented by a claim on the issuer, which is:

 
  • electronically store;
  • issued on receipt of funds for the purposes of making
  • payment transactions;
  • accepted as means of payment by a natural or legal person other than the issuer.