IMF Course Explores E-money and Mobile Payments

Secure, smooth-functioning payments systems allow money to move freely to support economic activity. In the digital age, new forms of money and payments have developed to meet consumers’ demand for fast and convenient digital payments that can happen anywhere, at any time. For instance, electronic money (e-money) systems have rapidly taken off in many jurisdictions. These systems have supported financial and digital inclusion, and enabled new business models to flourish through a re-bundling of services. These systems, however, also raise potential challenges for financial stability, competition, and consumer protection, which need to be mitigated effectively, especially if these risks were to become systemic. 

A one-week course in September, led by the IMF’s Monetary and Capital Markets Department, provided an overview of the ongoing and emerging considerations for policymakers working with e-money service providers in their jurisdictions, or looking to further encourage their development, particularly in the context of emerging trends and alternative or complementary solutions, such as fast payment systems and central bank digital currencies (CBDCs). The workshop also covered practical issues on licensing, supervision, and regulation of e-money as well as payments oversight. 

Participants who came from national authorities across Europe and Central Asia discussed the distinct considerations for their jurisdictions including their outlook for the future of cash, digital payments, and potential national strategies. The EU’s approach to e-money and discussion on Payments Services Directive (PSD3) were of particular interest to attendees looking for examples of robust regional practices. Given the pace of change in this field, participants also noted the wider focus of the payments landscape was valuable to support their thinking of long-term developments.

Alongside regional training, the IMF’s Monetary and Capital Markets Department also provides bilateral capacity development on topics, such as financial market infrastructures, payments oversight and CBDC. 

Manisha Patel, Financial Sector Expert, IMF