Protecting Customers’ Mobile Money Funds in Civil Law Jurisdictions

Protecting Customers’ Mobile Money Funds in Civil Law Jurisdictions

December 6, 2015 - 06:45 -- nadia.dafir

Mobile money is a payment and storage service that uses ‘e-money’—a form of stored value that is not a bank deposit. This briefing note focuses on mobile money provided by non-banks, such as a mobile network operator (the ‘provider’).

In this non-bank model, customers exchange cash for e-money either with an agent or directly with the provider. The customers’ cash (or funds) are held with the provider, and even if the provider deposits these funds with a bank, the funds are not generally protected by the depositor protection provisions that customers enjoy when depositing funds directly with a prudentially regulated bank. This briefing note explores how regulators can protect such customers’ funds from loss in a civil law jurisdiction.

Publication and Practitioners Guides and Training Tools
Regulation and Digital Financial Services
Programme: 
Mobile Money for the Poor (MM4P)
Practice Area: 
Inclusive Finance
Document Date: 
Dec 06, 2015
Document Download: 

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