14 October 2008

A meeting of the European Parliament

The European Commission hopes to stimulate the electronic money industry with a proposed revision to rules governing the issue of e-money in the European Union.

Following extensive consultation, the Commission found that some provisions in the current rules, dating from 2000, have hindered the take-up of the electronic money market and hampered technological innovation. The revised rules will facilitate market entrance for new providers and help to develop an industry whose expected volume could reach €10 billion by 2012.

Internal market commissioner Charlie McCreevy said: “The e-money industry has significant untapped growth potential. I believe that the new rules will accelerate the uptake of electronic money in Europe. These modern rules will foster competition and innovation, while ensuring market confidence and a high level of protection for consumers. This will be an important contribution to our broad objective of creating a single market for electronic payments.”

The e-money industry has significant untapped growth potential. The new rules will accelerate the uptake of electronic money in Europe, and foster competition and innovation

Charlie McCreevy , Internal Market Commissioner, European Commission Among the proposed innovations is a simpler, technologically neutral definition of ‘electronic money’, to include e-money held on payment devices in the holder’s possession (pre-paid cards or electronic purse) or stored remotely at a server (network or software money). In addition, the application of redemption requirements is clarified, especially in relation to mobile telecommunications. Consumers would have the right to claim back their electronic money at any moment, under conditions laid down by the new rules.

The proposal, which entails a repeal of the the existing E-Money Directive (2000/46/EC) and its replacement with a new one, will now be considered by the European Parliament and the Council of Ministers.

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