From funding in euros to earmarked electronic money
Electronic money is monetary value issued on receipt of funds, stored in electronic form and accepted by recipients other than its issuer. It is the object that MAP places at the service of a funding programme.
A funding programme follows five moments. Distinguishing them avoids shortcuts: funds being paid in does not mean they are usable, and an operation being authorised does not mean it has been posted.
1. Funding
The funder pays in funds in euros. This payment is the origin of the whole arrangement: nothing is issued without funds received.
2. Issuance
MAP issues electronic money up to the amount of the funds received and allocates it to the programme. The amount issued corresponds to the amount received; issuance creates no additional value.
3. Holding
The electronic money issued is held by the persons or organisations designated by the programme. The holder has a balance usable within the defined scope, and a right to redemption under the conditions set out in the contract.
4. Use
For each operation, the system checks the programme’s rules and then accepts or refuses. An accepted operation passes through distinct states, authorised and then posted, which do not have the same effect on the balance.
5. Redemption
Electronic money is redeemable in euros under the terms settled in the contract: who may request redemption, within what period, under what conditions, and what happens to a balance at the end of the programme.
What should not be confused
| Often confused | Distinction |
|---|---|
| Electronic money and bank deposit | Electronic money is not a deposit: it bears no interest and is not covered by a deposit guarantee scheme. |
| End of a programme and right to redemption | The possible expiry of a programme and the rights attached to the redemption of electronic money are two distinct questions, dealt with separately in the contract. |
| Authorised operation and posted operation | An authorisation reserves an amount; posting debits it. The two events are recorded separately. |
Check the fit with your funding
Together we examine the origin of the funds, the intended holders and the redemption conditions to be set out in the contract.