Deutsche Telekom is looking into the development of electronic money facilities following a recent E-Money Directive, which increased the scope of bodies able to operate as banks to include any electronic money institution.
The Directive, which was passed by the European Union last month, has prompted several telecommunications companies to consider the possibility of offering their own forms of electronic money.

This would allow the companies to profit from the high commissions that credit card companies make from on-line retailers. Proposals already suggested would mean that consumers purchasing goods over the telephone would be billed for the cost of the goods along with the charge for the call, rather than receiving a separate credit card bill.

Some observers have suggested that the telecommunications companies would benefit from joining forces with existing banks in order to establish these new systems. Such an arrangement would provide the companies with essential knowledge and experience in dealing with financial services, particularly with regards to preventing fraud.

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