The Disproportionate Focus on Pure E-Money
By Stan Reuben
There seems to be a disconnect between the payment sector desire to develop innovative solutions to provide fully inclusive payment solutions to all and the lack of focus on providing an environment for those customers who prefer and/or are more comfortable using cash.
The pure e-money sector e.g. the voucher industry, which offers the cash customers the ability to convert cash to electronic money, has certain inherent natural limiting factors which by their very nature reduce the scalability. However pure e-money has been forced to comply with rules and regulations more appropriate for the new payment products which do not have the same natural limits, are significantly easier to scale and therefore pose a greater opportunity for money laundering and criminal activity.
The review would seek to demonstrate that the cash sector has been disproportionately impacted by regulation. Innovation in this niche of the payments market must focus on providing cash customers with an ability to use cash on the internet without the disproportionate invasion of their privacy while still complying with all regulations