Extract
[...] Another form of electronic money is that used in prepaid cards where users load a certain amount in advance and use that credit to make purchases. However, with the emergence of modern payment solutions such as Apple Pay and other contactless devices, the future of electronic money appears uncertain. In fact, these solutions act as equivalents of bank cards, but in a virtual form. Just like other types of financial institutions, the establishments of electronic money can also outsource certain of their functions. In this case, the electronic money establishment, as the principal, remains responsible for the faults committed by its agent. [...]
[...] This allows us to remove credit institutions that are, by right, payment service providers. Section 1 - Payment Institutions Article L 522-1 of the Monetary and Financial Code defines payment institutions as legal entities that are not credit institutions nor electronic money institutions. On the other hand, they provide, as a regular profession, payment services without being credit institutions. Within the SEPA framework, the goal is to put banks in competition with non-banking actors, although subject to certain regulation. However, this has not led to a decrease in costs for consumers. [...]
[...] payment institutions and credit may resort to payment and credit institutions payment service providers' agents, who act as agents. In accordance with the rules of the mandate, the payment institution or the credit institution that makes use of these agents remains responsible, towards clients, of any shortcomings and faults committed by their agents (article L 523-1 of the Monetary and Financial Code). Section 2 - Electronic Money Issuers Electronic money issuers constitute a final category of payment service providers. Is it necessary to recall that the issuance of electronic money and the provision of payment services are connected activities for credit institutions. [...]
[...] Article L 522-2 II of the Monetary and Financial Code specifies that dWithin the framework of their activity of provision of payment services, payment institutions may grant credits if the following conditions are met : The credit has an accessory character and is granted exclusively within the framework of the execution of payment operations that this payment institution payment carries out; For example, a debit card used at the end of the month constitutes a form of credit. The credit is repaid within a period fixed by the parties, which in no case may exceed twelve months; On the other hand, the concept of overdraft is of a different nature. In fact, a payment facility of 100,000 euros is akin to a credit opening. [...]
[...] Their mission is to issue this currency, to hold it and to execute payment orders. A bank issues electronic money when it links a bank card to an account. The customer indeed deposits cash on their bank account, which is stored on their bank card to be spent. There are, however, electronic money issuers other than banks. A classic example of electronic money issuance is provided by PayPal. When money is deposited into a PayPal account, it is converted into electronic money, which can then be used to make online payments. [...]
