What is an E-Money Institution?

An E-Money Institution (EMI) is a legally authorised entity empowered to issue and manage electronic money (e-money). At 3S Money, we operate as a globally regulated EMI under the Financial Conduct Authority (FCA), Commission de Surveillance du Secteur Financier (CSSF), and Dubai Financial Services Authority (DFSA). These licences enable us to provide secure, innovative, and efficient financial services across 190+ countries.


EMIs exist in different forms, but they usually offer some (or all) of the following:


  • Issuance, distribution, and redemption of electronic money.

  • Provision of payment services that facilitate e-money transactions.

  • Distribution of payment cards enabling conversion of e-money into physical currency or cash deposits onto cards for electronic use.

  • As alternative banking providers for non-resident business owners,


What is electronic money?


Electronic money, or e-money, is a digital currency stored on hardware or software platforms, such as prepaid cards, mobile phones, or e-wallets. Unlike cryptocurrencies, e-money is directly backed by traditional fiat currency, offering users the benefits of digital payments without the volatility of decentralised assets. It functions much like cash but does not accrue interest.


What are examples of e-money?


E-money can take various forms, from virtual currencies to central bank digital currencies (CBDCs). Below are some common examples:


Central Bank Digital Currencies (CBDC)


CBDCs represent digital forms of national currencies issued by central banks. Unlike traditional banknotes, these currencies are entirely digital, enhancing transaction efficiency and accessibility while maintaining governmental oversight.


Cryptocurrency


Although both cryptocurrencies and e-money are digital, they differ significantly. Cryptocurrencies operate on decentralised blockchain technology, whereas e-money is regulated and backed by fiat currency, ensuring stability and compliance with financial regulations. By adopting e-money, users access faster, more convenient payment options, often bypassing the need for intermediaries like banks in day-to-day transactions.


Please be advised that 3S Money doesn’t support or accept the sending, receiving or exchanging of cryptocurrency payments.


Cross-border payment platforms


These platforms allow businesses to conduct international transactions by facilitating payments in multiple currencies with competitive exchange rates and lower fees. They enhance global operations by minimising banking delays and streamlining the management of foreign currencies.


B2B payment systems


These systems are designed for company transactions and automate invoicing, payments, and expense tracking. They enhance efficiency, reduce manual errors, and integrate with accounting tools to improve financial management in business operations.


Where can I use e-money?


E-money is versatile and widely accepted. It can be used for:


  • Online shopping through platforms such as Amazon and eBay.

  • Peer-to-peer payments via services like PayPal or Venmo.

  • International money transfers using EMI-supported apps or portals.


Five benefits of an e-money account


  1. Convenience: E-money enables quick transactions without the need for physical cash or cheques.

  2. Global Reach: Users can easily send and receive money internationally, making it ideal for businesses that operate in multiple local markets.


  3. Lower Fees: E-money transactions often incur lower fees than traditional banking methods.

  4. Accessibility: Accounts can be managed from mobile devices, ensuring seamless financial control anytime, anywhere.


  5. Security: EMIs implement advanced security measures, such as encryption and multi-factor authentication, to protect user funds.


Is an Electronic Money Institution a bank? 


EMIs differ from traditional banks in their services and regulatory scope. 


EMIs don't provide investment, deposit, or credit services, while banks typically offer these. Both institutions can provide customers with unique IBAN payment accounts, with EMIs often including debit card options for added flexibility.


Are Electronic Money Institutions Safe? 


EMIs implement rigorous safeguards to ensure the security of customer funds. These measures align with stringent regulatory standards set by regional authorities. 


EMIs must adhere to specific regulations that separate customer funds from the institution's operational capital. This practice safeguards customers' money in unforeseen circumstances, ensuring their funds remain secure and accessible. 


With the oversight of regulatory bodies and robust safety protocols, using EMIs in these regions is a reliable and safe choice for managing and transacting money.

Why choose 3S Money as your EMI partner?


3S Money is the ideal partner for secure and efficient e-money solutions. We specialise in international transactions and multi-currency capabilities, providing dedicated customer support. Our competitive rates and commitment to security make us the perfect choice for businesses looking to optimise their financial operations globally.


Key features:


• Hold multi-currency accounts in USD, EUR, GBP, AED & 61+ other countries.

• Pay up to 10,000 beneficiaries with same-day batch payments.

• Use bespoke APIs to integrate e-money services into your platforms.

• Access dedicated client support in 12+ languages.

• Benefit from competitive exchange rates with instant settlements.

• Use strong security measures, including encryption and multi-factor authentication.

• We accept non-resident directors and shareholders from 190+ countries.



Last updated: 13/12/24



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