Electronic Money Supervisory Commission

Book Information

E-Money and Regulation in the EU: Lessons from Japan.  What Does the Future Hold for E-Money in Europe?

E-Money and Regulation in the EU: Lessons from Japan. What Does the Future Hold for E-Money in Europe?

Author: Yue Liu

Date published:


This research illustrates that electronic money has grown to become the major method of payment in Japan. Jean J. Luyat details the case of Kozo Matsuoka, a Japanese information technology worker who travels regularly between Fukuoka to Tokyo. His cell phone is probably the most important item he takes on his trips. This is because it contains a contactless integrated circuit (or IC) chip programmed with data from three separate electronic money issuers.

This paper will explore the underlying factors as to why electronic money has been languishing as a method of payment in Europe, while it has been enjoying its current success in Japan.

This research or paper illustrates what e-money is and why it is important as a means of payment. Then, it examines statistics from both Europe and Japan in an effort to compare the growth trends and adoption rates of e-money in each area. The chapter continues to evaluate the various factors, such as payment culture, technology, business strategies and legal environment that could account for the success of electronic money or the lack of it.

It further investigates the impact of the regulatory environment on e-money development in the European Union. The original E-Money Directive is reviewed in detail. The review includes the Directive’s background, the reasons for its adoption, its main features, and the achieved results weighed against the Directive’s goals. The chapter concludes with a discussion of the regulatory problems pertaining to mobile network operators in Europe and the issues arising from PayPal’s activities as a globally successful e-money issuer.

Discuss the central features of the Japanese regulatory framework. The emphasis in this chapter falls in the Prepaid Card Law, which regulated prepaid instruments in Japan for a period of 20 years. The chapter continues