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The Issuers PerspectiveThe Issuers PerspectiveThe Digital Money
Forum
April 2002Dr Thaer SabriChief Executive
The Electronic Money Association
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E-Money experience
E-money initially conceived as a more efficient substitute to
cashSeveral models piloted throughout 90s Learnings:
Consumer reluctance unless discernable advantageSuccess in
Niches
E-commerce (EMT) offers unique opportunities
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E-Money StatusUnattended terminals established in some
countriesE-commerce
Person to Person successful led by PayPalUnder 18s targetedSmall
value payments still not resolved
Packaging & cultureMobile payments
Network delivered services successful, limited content Transport
products planned in the UK
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Issuers Challenges
Regulatory uncertainty, now addressedBusiness
challengesCompetition from other payment products
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EMA inception & workThe implementation of the e-money
Directive provided the impetus
Issuers found areas of common interest & benefits in
cooperating on regulatory issues
Built trust and shared knowledge
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EMA inception & workImplementation was a two stage
process:
HMT Consultation on amending legislationDefinition of
e-moneyAspects of FSMA which apply
FSA Consultation on implementationSupervisory regimeDefinition
of rules and guidance
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Regulatory workSatisfied with HMTs proposals; submissions on
Definition of e-moneyApplication of the compensation &
ombudsman schemesCriteria for small issuers
Also with the FSAs proposals; greater detailInterpretation of
definition & scopePurse limitsOmbudsman schemeLimitations on
investments & activities
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Current ItemsApplication of Money laundering legislation
Know your customer requirementsPossibility of an anonymous
product
Using regulatory publications & standards, develop criteria
for voluntary best practice in:
Legal, reputational & operational risk
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Future ItemsSome of the issues are:
PassportingPrivacyThe business barrier - creating a marketplace
for products & services
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The EMAs Objectives EMA Objectives:
Represent the joint interests of industryPursue such
interestsDevelop minimum standards wherever requiredVehicle for
communication within industry and with third partiesSharing of
information
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The IssuersEMA members include:
Payment companiesTelcosTransport companiesSpecialist E-money
issuers Other miscellaneous sectors
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Future DevelopmentProvide a forum for all issuers all issuers
are invitedEuropean issuers encouraged to form own (or affiliate)
organisationsWiden or create new types of membership
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Thank you
Thaer SabriChief ExecutiveThe Electronic Money Association
DirectorFlawless Money [email protected] 0797 111
2066
