Mobile e-money regulations overview
If you’re looking for an overview on where we are with mobile phones and the e-money regulations, here’s some text written by Nick Ris of MX Telecom. It was originally published on the Mobile ForumOxford discussion as a response to a question from Ajit Jaokar of FutureText.
I thought it was worth republishing to all and sundry here as a reference and republish with Nick’s permission.
The highest profile [e-money related] service to date was the LYNX campaign to puchase a ‘clicker’. The service required the user to text into the code 78888.
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The concept of e-money is relevant to the mobile industry further to the Financial Services Authority (FSA) implementing the requirements of the E-Money Directive.
In brief, a service is deemed an e-money service where:
1. It is provided to an end user by a party other than the mobile network.
2. The service provided is not delivered and or consumed on the mobile handset, yet is charged to the handset.
3. The service is provided to a pre-pay mobile user.
The networks do not have the ability to readily distinguish between pre-pay and contract users on a per transaction basis, and therefore where criteria 1. and 2. are fulfilled, the service should be considered as an e-money service. Examples include:
– digital services charged for using premium rate charges e.g. music downloads provided via the Internet.
– digital token services charged for using premium rate charges e.g. parking tickets.
Until Q3 2005, no e-money services were allowed to operate in the UK. Further to the EU reviewing the Directive, the situation is now that e-money services can operate, subject to a cautious approach being taken by the networks.
To summarise the main features:
1. E-Money services should be MT billed only, up to a tariff of 5 GBP.
2. Non-adult services must be in the 7xxxx number range.
3. Adult services must be in the 79xxx number range.
4. No subscription e-money services are allowed (there must be one MO per MT).
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Since the directive is an EU one, theoretically E-Money on mobiles is an issue all over Europe. In practice it is up to the carriers in each country to decide how to interpret the regulations and how as in the UK to create the market..
I have a summary doc about this, and if anyone wants a copy, do drop me an email!
best
Nick
You can contact Nick at MX Telecom on +44 20 8987 8855.
