Electronic money is nothing new. Most of us have grown so accustomed to spending money digitally that we don’t even notice the novelty anymore. E-money represents a further step towards a truly digital economy. A relatively small group of pioneers is driving this new and exciting industry.
What Is E-Money?
The Financial Conduct Authority (FCA) defines e-money as any electronic money that has a monetary value. E-money is stored electronically or magnetically. It is also issued upon receipt of conventional fiat funds. It must also be accepted as a payment method by individuals and businesses other than the issuer of the e-money. Generally speaking, electronic money can be used to pay for online transactions or in real life if an appropriate device is used.
It is important to note that e-money is different from cryptocurrencies. Usually, Cryptocurrencies are built upon distributed ledger technology and have very specific characteristics. E-money is not dependent upon an underlying blockchain. Or any other technologies. However, e-money can run on a blockchain as well.
The businesses that we have identified below are among the most important players in this new market.
🏆
The 2024 Creative Retail Awards are open for entries.
The Creative Retail Awards are much more than a mere accolade; they represent the pinnacle of achievement in the retail industry. Garnering a nomination or winning one of these awards is a testament to innovation, excellence, and leadership.
www.creativeretailawards.com
PSP Lab
PSP Lab is not an electronic money institution itself. However, they are essential to other UK electronic money institutions. PSP Lab assists electronic money institutions in obtaining the appropriate regulatory authorisations that they need to operate in the UK. PSP Lab is one of the most reliable regulatory compliance consultants for helping companies to obtain an E-money License in the UK. Check out this link to learn more about e-money license from PSP LAB. Anyone considering establishing their own e-money business in the UK needs to know about PSP Lab. They are providing a wide range of services, from assistance with the licensing to ongoing regulatory compliance, management consulting and external auditing.
The litany of rules and regulations surrounding the money market in the UK can be difficult to navigate if you have no previous experience and in-house legal counsel who is experienced with the FCA regulatory regime for payment and e-money services. You will save time and money engaging a professional regulatory compliance firm like PSP Lab which can assist any entrepreneur in establishing their own FinTech unicorn, getting authorised by the FCA and ensuring their compliance with Electronic Money Regulations 2011 and Payment Services Regulations 2017 (cornerstone legislation that governs the e-money and payment industry in the UK).
Revolut
Revolut is probably the best-known of all the e-money businesses operating today in Europe. Revolut has a global profile and expanding their operations to Asia and USA.
Users can sign up for a free UK account. This free account not only supports GBP – it also supports Euros. Thanks to Revolut’s interbank exchange rate, this account enables you to convert your money in over 150 different currencies, seamlessly.
Every account also comes with a free Revolut bank card. This card enables the holder to convert and spend their money into five separate cryptocurrencies. As with a standard bank card, Revolut customers can withdraw cash from ATMs for free. However, for a free account, there is a limit of £200 every month with Revolut. This limit contrasts with the £200 a day limit that most UK banks operate with.
DECTA
DECTA is another rising star in the nascent e-money industry. They have already established a reputation as one of the most technologically advanced and reliable e-money institutions that also helps other financial institutions to offer their customers cards and payment acceptance. As a principal member of the Visa International and Mastercard Worldwide schemes, DECTA is well-positioned to flourish in the e-money marketplace. At the core of their brand are experience and flexibility. DECTA is operated by individuals who have extensive track-record working in the financial services industry.
TransferWise
TransferWise has built a reputation on the back of its seamless currency conversion service. Before branching out into the e-money sector, TransferWise helped customers to send money from the UK to other countries as cheaply and simply as possible.
As well as Revolut, TransferWise serves both individual users and businesses. TransferWise for business is one of the most well-established multi-currency business-focused services available in the UK. They make it simple for businesses to send and receive payments in a multitude of currencies. They also guarantee the proper exchange rate on every conversion, ensuring that you always get the most bang for your buck.
Opening an account with TransferWise is free and straightforward. Once your account is up and running, you can start sending and receiving multi-currency payments immediately. However, they are able to offer foreign currency conversions up to 14 times cheaper than PayPal. Given that PayPal used to be the benchmark for overseas currency exchange and conversion, this accolade counts for a lot.
The businesses listed above are the key players in the e-money industry today. As the UK’s e-money industry continues to grow, we expect these businesses to flourish. Within the next decade or two, you will almost certainly be hearing their names on the lips of every financial services professional.
