Developments in electronic money regulation – the Electronic Money Directive: A better deal for e-money issuers?

The recent adoption of the new E-Money Directive by the Council of the European Union has introduced key changes to European e-money legislation. The adoption of the new directive follows the European Commission's review of the original e-money directive and the market that it was intended to facilitate, which found that e-money has yet to deliver the benefits that were anticipated.In addition to discussing the perceived shortcomings of the original directive against its objectives, this article highlights the key regulatory changes introduced by the new directive and considers the success of e-money in Japan.Whilst recognising that the new directive removes a number of regulatory barriers to issuing e-money, the authors conclude that significant investment in technologies and infrastructure, combined with supplier collaboration to develop attractive and innovative services for consumers, will be essential to the successful growth of e-money in Europe.