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EU rules foster competition and innovation in e-money services.


Electronic money (e-money) is a digital alternative to cash. It allows users to make cashless payments with money stored on a card or a phone, or over the internet.

EU rules on e-money aim to

  • facilitate the emergence of new, innovative and secure e-money services
  • provide new companies with access to the e-money market
  • encourage effective competition between all market participants

EU rules

The e-money directive (EMD) sets out the rules for the business practices and supervision of e-money institutions. The directive aims to lay the foundations for a single market for e-money services in the EU.

The directive has provisions to

  • align EU requirements for e-money services and put in place coherent set of requirements for obtaining a licence as an e-money institution.
  • facilitate access for newcomers to the e-money market by ensuring prudential rules are proportional to the risks faced by e-money institutions. This includes reducing the initial capital requirement to €350,000 and new rules on calculating own funds.