Feeds

UK leads e-Money revolution

E-Day

  • alert
  • submit to reddit

Internet Security Threat Report 2014

It is not everyday that the United Kingdom is seen to be leading the European Union (EU), never mind the rest of the world, but on Saturday April 27 2002-E Day--Britain became the first member state to implement the EU directive covering the issuing of electronic money. The British, of course, responded to this momentous event with traditional disinterest.

E-Money is one of those areas of business whose public profile waxes and wanes with little rhyme or reason. However, it is clear that there is a real need for safe and secure methods of handling money in an electronic format to be both devised and, more importantly still, widely deployed at both national and international levels. Thus one would think that E Day would be greeted with at least a modicum of fanfare, but the reality was somewhat different. Indeed, a quick poll indicated that there was a near uniform ignorance of the event.

As of E-Day, anybody that wishes to issue electronic money can do so as long as they satisfy a number of core criteria specified by the Financial Services Authority (FSA), without having to first obtain a banking license. In essence this means that as long as the issuers of the e-money can meet the capital requirements of one million Euros or 2 percent of the e-money to be issued, they are free to do so. There is a limit of one thousand pounds sterling on the maximum 'purse' value; the e-money must be redeemable within five days and the currency must be usable for at least one year.

It is widely expected that a number of companies, from mobile phone giants, credit card organisations and even the Post Office, are actively considering launching their own e-money offerings. However, any organisation meeting the basic FSA criteria can set up e-money for themselves. Indeed, at the small scale end of the market some of the more onerous requirements can be waived. Such a waiver could make it possible for a school or small business to set up cashless payment systems internally without having to possess a million Euro worth of capital in the first place.

It will be interesting to see how things develop from here and how swiftly e-money offerings make it on to the streets of Britain. Any organisation entering the market will certainly face a stiff user credibility test. After all, whom would you trust to issue you with money, electronic or otherwise? If e-money is to become a reality there is clearly a potential for fraud to take place unless the public at large are brought up to speed on the basics, such as "Who to trust?", "What to look for?", "How does it work?".

Beyond this there is a need to let potential issuers know the benefits they could obtain through the use of e-money and any pitfalls to avoid. We shall have to keep an eye out to see if any of the marketing machines of the big brand names jump onto the e-money bandwagon.

© IT-Analysis.com. All rights reserved.

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.