Three-quarters of emergent European e-money providers are headquartered in London and licensed as British providers of financial services.
One of the biggest advantages of European e-money services is that they can easily be provided across international borders. If British financial licences become invalid within the EU, e-money providers will find themselves in a similar situation to banks.
Their only option will be to obtain a new licence in the EU, a process that involves additional regulatory requirements, duplicating infrastructure, and – most importantly – additional cost. This could put a dampener on the development of e-money in Europe.
Despite this, e-money promises to be a key future issue for the financial industry as innovative companies seek out other options, including options outside the UK.
Source: FT Adviser
