1. De instelling voor elektronisch geld Wat staat ons te wachten ? 11 Juni 2002

2. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld

3. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Programme Welcome n Market and regulatory developments n E-money in the UK: suggestions Tea break / Thee pauze n Toelichting op Nederlandse wetgeving n Wetgeving in de praktijk n Vereniging 1.1a2

4. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld

5. Market and regulatory developments How did we get here? 11 Juni 2002

6. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld

7. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Outline n Introduction n How did we get here? n Main players n Chronological overview of developments n Some remarks

8. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Introduction n Business Administration (1989) n Postbank (1990-1995) n De Nederlandsche Bank (1995 - june 2001) n S. Lelieveldt Consultancy (july 2001 - ) –research ePSO project European Commission –report with Electronic Commerce Platform –workshops NIBE/SVV on e-payments –consultancy (e-Back, Privver etc)

9. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld How did we get here? n Legislation on e-money as a result of interaction between: market developments: –chipcard, internet-money, mobile telephony and regulatory responses: –local regulators, European Central Bank, European Commission

10. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Main players n Large retailers (Shell, Ahold, Telco) n Postbank (former postal giro) n Bankgiro banks (ABN AMRO, RABO) n Small and foreign players (Danmønt, Mondex, Primeur, Digicash) n De Nederlandsche Bank (central bank) n Ministries of Finance and of Economic Affairs, Ministry of Transport, EC, ECB

11. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Chronological overview - POS n 1985: Shell threatens with own card-system n 1987: joint POS-system of Dutch banks n 1988: authorities leave it to the market n 1988: chipcard-initiative small retailers n 1989: joint chipcard pilot banks/retailers n 1991: chipcard-pilot ended succesfully n 1991: Albert Heijn supports POS -> success

12. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Chronological overview - 2 n 1993-1994: market initiatives –Primeur Card (smaller retailers, chip) –KPN with phone card + –Proton, Mondex: foreign purse-systems –Digicash with e-cash n Concern for banks and regulators

13. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Chronological overview - 3 n 1994-1995: first reactions –Banks start joint chipcard pilot, based on Proton –DNB initiates EMI report on electronic money loading is actually ‘attracting deposits’ e-money issuance needs to be supervised –Statement by working group of public authorities: e-money requires supervision (note: Ministry of Economic Affairs disagrees)

14. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Chronological overview - 4 n Eind 1995-1997: further developments n Postbank and KPN Telecom develop and roll out Chipper while other banks roll out Chipknip n Joint banks develop I-pay (after digiclash) n Regulators study/consider their roles –BIS-, G-10 and ECB studies on e-money –possible EU directive on e-money

15. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Chronological overview - 5 n 1998-1999 Chipcard war ends;rules appear – retailer loyalty cards met chip (Edah etc) – interoperable Chipper/Chipknip terminals – risk management for electronic banking (BCBS) – report on electronic money (ECB) e-money issuers need to be a bank ! – Dutch Competition authority set up

16. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Chronological overview - 6 n 2000: steady progress – Chipcard use slowly increases – Shell pilots Easypay payment product – Postbank sells Chipper (international) – Directives on e-money finalised supervision necessary issuing organisation not necessarily a bank lighter regime of supervision envisaged

17. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Chronological overview - 7 n 2001: chip moves, mobile payment starts – Pre-paid chip-only card for parking/vending – Postbank - Telfort trial M-payments – Nedap pilot mobilepay at as station (GSM) – Tripper-pas Groningen (proximity) – Increasing number of interventions on NL and EU-level – Start of work on implementation directives

18. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Chronological overview - 8 n 2002: chip works, more intervention – Chipcards take off – A number of mobile initiatives ahead – Investigation ‘pinnen’ (Nma) – Investigation Wellink (DNB) – Investigation entry barriers and switching costs (Ministeries of Finance and Economic Affairs) – Draft supervisory legislation and rules

19. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Conclusion n Legislation on e-money is the result of market developments and response by regulators n The challenge is now to allow innovation and competition under an ‘old’ regulatory framework

20. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Some remarks - 1 n Market –Banks respond swiftly to external threats (chipknip, I-pay) –Large users come up with dedicated systems –New m-payments (incl internet use) arrive n Dutch regulators –Speedy implementation (definitions…) –Late consultation of the market

21. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld Some remarks - 2 n Differences with the UK: –UK had no specific regulation in place before EMI-directives; in NL Act on Supervision ‘applied’ ; -> different starting point for a representative organisation –UK regulators tend to consult market in time

22. © S. Lelieveldt Consultancy 11 Juni 2002 De instelling voor elektronisch geld