Europees Parlement: Elektronisch betalen moet veiliger en gemakkelijker worden (en) - Montesquieu Instituut

The offer of e-money services should be enhanced by boosting innovation and improving consumers' confidence, according to a report adopted by the European Parliament. Updating the existing legislation on e-money business to achieve a true single market allowing this industry to expand is the objective of the report drafted by John Purvis (EPP-ED, UK) and adopted on Friday in Strasbourg by 364 votes in favour, 30 against and 1 abstention.

Mr Purvis, during the debate before the vote, said the new legislation is a "significant step forward" to "facilitate the use of electronic money for online payments". He also stressed that the agreement reached with the Council allows this legislation to be enacted before the end of current parliamentary term.

E-money: room for market expansion

Members, while welcoming the substance of the Commission proposal, amended the text to improve, particularly, the provisions related to the safeguard of individuals' savings.

As the Belgium "Proton, the French "Moneo" or the German " Geldkarte", electronic money is simply the storing of cash in an electronic form, e.g. online payment account, pre-paid mobile phone account or electronic gift voucher. E-money represents also a payment option for those normally without access to bank account, such as children or immigrants.

In July 2007, e-money issuers in the EU carried €1053 million outstanding, compared to €670 million in 2005.

Facilitating innovation and increasing business

Decreasing the required initial capital can help innovation in this field. In fact, Members reached an agreement with the Council to diminish the required threshold to start up an e-money institution (EMI) from €1 million to just €350.000.

In addition, EMIs will have to guarantee that their own funds amount at, at least, 2% of the average outstanding e money.

Moreover, to encourage e-money growth, MEPs backed the proposal to allow EMIs to provide other services other than that of e-money.

Increasing consumers' confidence in e-money services

Ensuring that all consumers can convert their electronic credit into cash is necessary to boost citizens' confidence and thus increase business in e-money, according to MEPs.

Therefore, Parliament approved provisions to oblige e-money issuers to give the costumer, upon his request, the monetary value of his electronic credit at any moment during the validity of the contract.

Nevertheless, EMI will have the possibility to charge a fee for the redemption, if the request comes before the end of the contract, but only in case the charge is clearly provided in the contract.

Member States will have 18 months to implement the approved legislation. The Commission will have to present a report on its application by November 2012.