E-money account
E-money account (electronic money account or e-wallet) is a term related to e-money, or electronic money, which is explained as a summary of different electronic payment systems, used for purchases and transactions globally.[1][2]
An e-money account is used to store user’s money for future payment transactions, such as online and in-store payments and cash withdrawals.[3]
E-money accounts are provided by licensed e-money institutions as defined under the 2009/110/EC Directive of the European Parliament and Council.[4]
The European Union has been at the forefront of defining terms related to e-money - since 2000, which longer than other countries or regions.[5]
E-money Account Funding and other features[edit]
An e-money account can be funded in one of the following ways:
- One method is to send money transfer from another bank account to the e-money account. Respectively, money transfers can be sent from the e-money account to any bank account in the world.[6]
- Another method is to link the e-money account to a payment card and transfer funds from the card.[7]
Development of e-money legislations[edit]
While there hasn’t been a substantial regulation between the first EU E-money directive in 2000 and the second one in 2009, there has been a recent development in e-money legislation in the face of the fourth Anti-Money Laundering (AML) Directive from 2015.[8] The new AML rules requires issuers to undertake far greater customer due diligence in order to stay compliant and raise a big question for the sustainability of the e-money model.[9]
Companies providing e-money accounts and services[edit]
E-money accounts are services are offered by most banks today. In addition, there are fintech companies offering only e-money accounts and related services, the most popular amongst them being PayPal, Skrill, Payoneer and more.
See also[edit]
References[edit]
- ↑ "Electronic Money". Investopedia.
- ↑ "Electronic Money Definition from Financial Times Lexicon".
- ↑ "E-Money – Mobile Money – Mobile Banking – What's the Difference?". The World Bank.
- ↑ "Electronic Money". European Central Bank.
- ↑ "Electronic Money" (PDF). European Commission. 2008-09-10.
- ↑ Sophie Johnson (2013-10-22). "How a Virtual Bank Account Works". Pocket Sense.
- ↑ "E-payments – why, when and how to use them". Money Advice Service.
- ↑ "European Union Fourth Anti-Money Laundering Directive". ACAMS.
- ↑ "The Future of e-Money". 2017-02-05.
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