Electronic money on the rise thanks to European Parliament vote
Posted, April 24, 2009 @ 13:00
Purvis shows us th'E'-Money
Electronic money products such as the Oyster card for London Underground could soon be used for making far more payments, thanks to a new directive adopted by the parliament today, driven by Conservative MEP for Scotland, John Purvis.
Types of electronic money include online payment accounts, pre-paid mobile phone accounts, a top-up travel card or a gift voucher. In July 2007 e-money issuers in the EU carried €1053 million, compared to €670 million in 2005.
The directive seeks to make it easier for smaller operators to enter the market by reducing the amount of initial capital needed from €1 million to €350,000. It will also enable providers to extend the outlets where the e-payments can be made so that, for example, a company offering e-payments for transport services could also enable the consumer to purchase a coffee or newspaper.
Mr Purvis has also proposed measures to protect consumers using E-money, for example when trying to redeem money stored electronically.
Mr Purvis said:
"Electronic money is growing at a pace for many smaller items such as transportation and food. However with this directive we could see far more smaller businesses providing electronic money solutions and offering consumers more choice in how they pay for their goods.
"Entrepreneurs who will lead the payments revolution are currently shut out of the E-money market. By reducing the capital required to get started in E-money we can allow these entrepreneurs to find innovative new products.
"The potential benefits to the consumer could be vast, with payment cards and mobile phone handsets used as an alternative to a purse or wallet. Consumers will also be able to easily retrieve money they have stored.
"E-money institutions will be able to offer a wide range of payment services that are not viable at the moment."