FinTech | Electronic Money Issuance
What is EMI?
Electronic Money Institutions (EMI) are fast, modern alternatives to traditional banks.
An EMI is an organisation that has been granted a license to issue electronic money; money stored on an electronic or digital device, such as a mobile phone or card, that can be used to carry out transactions.
This license permits the institution to carry out e-money transactions in addition to the list of Payment Services that an Authorised Payment Institution (API) may conduct.
The key services performed by EMI within their regulation include the following:
● Issuance, distribution, or return/refund of electronic money
● Direct debit or credit transfers
● Currency exchange services
● Cash withdrawals from a payment account
● Transfer of funds to third parties
● Money remittance
● Payment cards
● Providing account information
However, EMI cannot provide:
● Bank accounts
● Deposits (or offer deposit guarantees)
Types of E-Money
Hard vs Soft E-Money
● Soft electronic transactions (e.g., using PayPal or credit cards), are reversible (typically up to 72 hours).
● Hard e-money transactions, on the other hand, are non-reversible and typically drawn through a bank.
Identified vs Unidentified E-money
● Identified e-money, such as credit card transactions, allows the e-money issuer (and the user) to track the payment.
● Unidentified e-money transactions mean the user withdraws the money from a bank and uses it like paper money. Once the money is withdrawn, the bank can’t track it.
Online vs Offline E-Money
● Online e-money transactions require an internet connection, alongside a bank to conduct a transaction with a third party.
● Offline e-money transactions use true digital cash, which doesn’t require involving a bank and is generally stored on a chip, card or other media.
With our technical, regulatory and payments expertise, and utilising our partner network, digitify enables companies to perform electronic transactions and/or facilitate their users to transact electronically.