Introduction

E-money is defined as any electronically (including magnetically) stored monetary value in the form of a claim on the issuer which is issued on receipt of funds in order to carry out payment transactions and which is also accepted by parties other than the issuer (see section 1a of the Zahlungsdiensteaufsichtsgesetz, the transposition of the E-money directive into German law).

Entities subject to oversight

The Bundesbank's oversight activity is principally directed towards the governance body for e-money schemes, which are headquartered in Germany. Among these was, for example, the GeldKarte: a card-based e-money scheme operated by the “Deutsche Kreditwirtschaft” (The German Banking Industry) which has been overseen by the Bundesbank since the earliest stages of development. In the case of important international e-money schemes, the Bundesbank is engaged in the cooperative oversight within the Eurosystem.

Implementation

The oversight of payment schemes and arrangements used for electronic money payments within the Eurosystem is carried out according to the oversight framework for electronic payment instruments, schemes and arrangements, the PISA framework.

The Bundesbank monitors developments in the area of e-money and assesses the security of e-money schemes on an ad hoc basis, e.g. when major technological enhancements are made. To this end, the Bundesbank collaborates, where necessary, with other authorities, such as the German Federal Office for Information Security (Bundesamt für die Sicherheit in der Informationstechnologie or BSI).