Electronic Money
Electronic Money (e-money) is a digital store-of-value product where all e-money issued by a e-money issue backed up by fiat currency stored electronically and with equivalent monetary value represented by a claim on the issuer. EMI accounts, often referred to as Virtual Accounts, are digital accounts that hold e-money. EMI accounts come with sort codes/account numbers and IBANs and have access to payment schemes.
Applications
E-wallets:
Stores e-money for online and mobile payments.
Prepaid cards:
Loads e-money onto prepaid cards for spending.
Advantages
- Convenience: Offers a convenient way to make digital payments.
- Accessibility: Provides access to financial services for unbanked populations.
Challenges
- Regulation: EMIs are subject to strict regulatory requirements.
- Security: Requires robust security measures to protect against fraud.
