The e-money evolution: a platform-based revolution

Today, digitalization is rapidly transforming the financial services industry. Technology savvy millennials now outnumber baby boomers in the workforce, as payments increasingly shift toward online platforms and mobile applications. These privately run solutions facilitate transactions between users with electronic money or e-money. 

The Monetary Authority of Singapore defines e-money as an “electronically stored monetary value in a payment account that can be used to purchase goods or services, or to transfer funds to another individual.” Technology companies are disintermediating financial institutions at the monetary unit level; cash and bank deposits are giving way to e-money, as it offers consumers a more convenient and personalized means of payment. If current trends continue, the potential implications for payment systems, monetary systems and ultimately the global financial system are quite dramatic.