Although there is much evidence that access to financial services correlates positively with economic development, basic convenient transfer and payment services are still unavailable for low-income segments of the Peruvian population. The experience of Kenya, the Philippines, and other countries has shown that electronic money (e-money) products can be effective in extending payment services. However, in Peru, the absence of regulation for the provision of schemes based on e-money prevents good investments and at the same time encourages fraudulent activities. This policy memo discusses the main elements of establishing a regulatory framework for e-money. It recommends that policymakers first define e-money, taking into account the laws and regulations of a particular country. If e-money is not defined as a deposit, then it follows that financial institutions may provide e-money products, along with telecommunications companies and similar operators. This will provide contestability in the market and more efficiency in the provision of e-money-based products for the benefit of consumers, particularly the poor.
CITATION STYLE
Sotomayor, N. L. (2011). Setting the Regulatory Landscape for the Provision of Electronic Money in Peru. Innovations: Technology, Governance, Globalization, 6(4), 105–116. https://doi.org/10.1162/inov_a_00105
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