This is the reason why cashless payments are liked by the public
Here is the Reason Why Cashless Payment is Preferred by Society
When translated into English, "payment" means "pembayaran." In the Indonesian Dictionary, "pembayaran" refers to the process, method, or act of paying. The meaning of "pembayaran" can be very broad, used for everyday transactions or business transactions between companies.
The presence of payment coincides with the emergence of money as a channel of exchange in service, goods, or financial transactions. To understand more about payment, here is an explanation of the definition of payment, its types, and its development in Indonesia.
Definition of Payment
Generally, payment is the process of transferring funds in economic transaction activities. There are three elements encompassing payment: innovation and technology, societal traditions, and regulatory policies.
History and Development of Payment
When there were no money-shaped tools, society used a barter system involving traded products. Over time, problems arose when two individuals did not agree, necessitating a better means of exchange.
Subsequently, society developed commodity money, referring to basic goods such as salt, sugar, tea, or coffee. Around 900 to 600 BC, the use of livestock began. After the emergence of agriculture, vegetables and plants were included in commodity money. Around 100 BC, animal hides started being used as commodity money, dyed in various colors to appear attractive.
The era of paper money began around the 1100s. The first country to use it was Sweden in 1661. Meanwhile, Indonesia, formerly known as the Dutch East Indies, only began using paper money in 1783.
Nowadays, the payment methods used by Indonesian society are not only cash payments but also non-cash payments. There are payment instruments such as checks or promissory notes. Additionally, there are those who use debit cards, credit cards, mobile banking, internet banking, and the newest one, QRIS.
The digital era has transformed society's payment habits from paper-based to non-paper-based. Even electronic cards are chip and server-based.
Types of Payment in Indonesia
As explained above, payment is a system involving both parties (seller and buyer) in fund transfers. There are two types of payments: cash payment and cashless payment.
- Cash Payment
This conventional payment method has been present in Indonesia since 1946. Cash payments are still used by some Indonesian communities for small nominal purchases. Some small kiosks and eateries still accept cash payments. - Cashless Payment
The digital era has brought about many changes, including the emergence of cashless payments. These payments do not require the use of cash. Their presence is supported by the National Non-Cash Movement in 2014. Some available cashless payments in Indonesia include:- Debit and Credit Cards
Two frequently used non-cash payment instruments in Indonesia are credit and debit cards. Both cards are issued by banks. The function of a debit card is for savings. It can be used when there is a balance in the account. If there is no savings balance, users cannot use the debit card for transactions. On the other hand, a credit card does not require a balance like a debit card. The bank will only charge a certain fee later (usually at the end of the month). This means the bank lends money to the credit card user. Both credit and debit cards use EDC machines to complete transactions. - Virtual Account
A virtual account, or commonly known as a virtual account, is a payment instrument often used by companies. The virtual account has a special ID issued by the bank. To make a payment, the buyer only needs to enter the company's virtual account number. After completing the transaction, the company will receive information without confirmation. - E-Wallet
An e-wallet or digital wallet is an application installed on the user's phone for transactions. E-wallets are like debit cards, but the balance storage is in the application. There is a password that provides transaction security for users. - QRIS
QRIS is the latest payment instrument and is starting to be used in some offline stores. For business owners, QRIS is quite convenient because they don't need to provide many codes. QRIS is accepted in various payment services, allowing business owners to receive and check payments through the application.
- Debit and Credit Cards
After understanding the definition, history, and types of payment, you can utilize them in your business. To further develop your business, use payment methods that align with customer preferences. Brick can assist you in accepting various payment methods and processing them automatically.
