A computer mouse resting on a bundle of euro banknotes, representing electronic money or e-money, respectively

What Is E-Money – Definitions, Processes, Challenges

E-money, short for Electronic Money, is the electronic alternative to cash. Since it started as a concept in the 1980s and rose to prominence during the Dot-Com era, it has acted as one of the biggest game-changers in the financial industry. In a matter of only four years, from 2014 to 2018, the number of electronic money transactions in Europe alone doubled to more than 4 billion. 

This aspiring form of money deserves our attention. To provide a starting point, this article will give an overview of: 

  • The definition of e-money as a whole
  • The subtle distinctions in its applications
  • The process of electronic payment with e-money
  • The potential downsides of e-money
  • And finally, e-money licencing and who should apply for such a license  

Let’s start!

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