Civil Liability of Electronic Money Issuer: comparative study

Authors

Hashim Naser Al-Din Mahmoud Sweidan, Ali Mohammad Musleh Sartawi

 

Abstract

Driven by the Fourth Industrial Revolution and the rapid technological advancements across various sectors, the financial industry has undergone a significant transformation in recent years. A prime example of this evolution is the growing trend among institutions to introduce electronic payment methods that align with the nature of E-commerce. Electronic money, in particular, have gained significant traction, becoming the most common means of settling obligations. This is largely due to the desire of parties involved in electronic contracts to find payment methods that suit the nature of online transactions, as it complies with the requirements of e-commerce and provides privacy and security for individuals. As a result, Electronic money has surpassed traditional currencies in importance and outperformed other electronic payment methods. The rise of Electronic money has given rise to a number of legal relationships. A central figure in these relationships is the issuer of digital currency, who is subject to numerous regulations and obligations imposed by legislations. These obligations cover both technical and legal aspects. Any breach of these obligations can result in liability. This underscores the importance of civil liability rules, which provide a legal remedy for individuals whose rights have been infringed. Given the evolution of transactions towards electronic formats, it has become necessary to define the civil liability of electronic money issuers in the absence of specific legal provisions. Consequently, such liability falls under the general principles of civil liability. This allows those harmed by the actions of issuers to seek compensation. Hence, the importance of this study lies in clarifying the civil liability of electronic money issuers by examining the legal nature of electronic money issuing institutions and the contractual relationships they establish to provide digital payment services. Furthermore, the study examines the types of civil liability of electronic money issuers, specifically contractual and tortious liability.

DOI: 10.51958/AAUJBL2026V10I2P6