electronicmoney

Electronic money, or e-money, refers to monetary value that is stored electronically and can be used to execute payments. It is issued by a licensed e-money provider or financial institution and is accessed through electronic instruments such as cards, mobile devices, or online accounts. E-money represents a claim on the issuer and is typically used for consumer payments, transfers, and sometimes cash withdrawal, rather than as a direct deposit at a traditional bank.

E-money takes several forms, including stored-value or prepaid cards, mobile money, digital wallets, and online wallets. Funds are usually prepaid and stored either on a device or in an account with an e-money issuer. Transactions can be conducted online or at points of sale, and some systems also support offline use or interoperability with other payment networks.

Regulation and supervision of e-money vary by jurisdiction but commonly fall under either dedicated electronic money rules or broader payment services regimes. Requirements often include licensing or registration for issuers, customer due diligence (KYC/AML), consumer protection provisions, capital and safeguarding rules for customer funds, and incident reporting. In the European Union, e-money is regulated under the Electronic Money Directive, with national authorities supervising licensed issuers. Other regions have similar frameworks, with oversight by central banks or financial regulators.

History and use trends show e-money evolving from early stored-value experiments in the 1990s toward widespread digital wallets and mobile payments in the 21st century. E-money facilitates fast, low-cost microtransactions and transfers, while regulatory and security considerations shape its adoption and acceptance.

See also: digital wallet, mobile payment, prepaid card, electronic payment system.