Electronic Money Directive

The Electronic Money Directive establishes the regulatory regime for electronic money, that is electronic cash replacements. A typical example that falls under this regulation is a payment card, but the directive is deliberately vague so as to not exclude functionally equivalent schemes that operate in an unforeseen manner. This Directive is highly relevant in the Fintech startup space as it is the basis for a large number of new payment-related business models. The directive requires that e-money providers must be authorised, and that there is a prudential regulation scheme in place, notably that there is an ongoing minimum capital requirement. Authorisation is passported across the Single Market. Third-country providers can also be given access to local markets, but it cannot be on better terms than providers operating under the Single Market passport.