Electronic Money

This paper will attempt to identify the issues that need to be addressed in order for stored-value cards and other electronic money systems to become a major payment mechanism in the global financial market. These new payments devices require a thorough evaluation of the appropriate regulatory, legal, and policy responses, as well as an estimate of the market acceptance (diffusion of this technology) throughout the financial and social system. These types of cards have the potential to have far reaching effects, if they are accepted by both consumers and merchants.