Transaction Acceleration with Electronic Money, Here's an Example!
Transaction Acceleration with Electronic Money, Here's an Example!
In today's electronic age, business transactions no longer need to use cash but instead use cards or even mobile phones. With both tools, transactions are preferred by customers because they are practical, secure, and convenient to use. Banking products are also becoming adaptive to consumers' new habits, thus issuing electronic money or e-money.
What is electronic money? What are its benefits and types? Then, what is the difference between electronic money and digital wallets? Brick will provide complete information for you.
What is Electronic Money
In general, electronic money is a fast, easy, and practical payment tool. This payment tool is electronic in nature and stored on a specific medium. How do you use it? Customers will deposit a sum of money to the card issuer to be stored in chips and servers. Once you are registered and have a card, you no longer need to carry a sum of cash.
Legal Basis of Electronic Money
There are regulations issued by Bank Indonesia to serve as the legal basis for electronic money, namely:
- Bank Indonesia Regulation No. 11 of 2009 concerning Electronic Money
- Bank Indonesia Circular Letter No. 11 of 2009 concerning Electronic Money
With the presence of these two regulations, electronic money can be used for various transactions legally. Electronic money can be issued by banks or similar institutions.
Types of Electronic Money
There are two types of e-money that can be used by consumers, namely:
1. Based on Chip
Chip usage functions as balance recording. If customers want to use this type, they need to purchase a card. Then, to be used, the card must be loaded with a balance.
2. Based on Server
This type of e-money can perform transactions online. Balance records are stored on servers and can be accessed on the internet.
Benefits of Electronic Money
After knowing the types of e-money, you need to know its benefits, namely:
1. No Need to Carry Much Cash
One thing that makes customers willing to use e-money is that they don't need to carry much cash in their wallets. So, customers only need to use cards and transaction security is guaranteed.
2. Save Payment Time
What is most facilitated when all transactions have switched to electronic? Customers no longer need to queue for hours, thus saving payment time. Then, customers don't need to face the cashier to wait for cash change.
3. Can Be Used for Toll Payments
One of the benefits that can be obtained when using e-money is easier toll payments. Customers don't need to bother using cash and then handing it over to the toll booth attendant. Customers only need to tap the card and the transaction can be done.
Examples of Electronic Money
There are several examples of non-cash money that can be used by customers. As explained above, non-cash money or e-money has two types, based on servers and chips. If based on chips, customers can get them from banking services with different names according to their respective policies. Meanwhile, for those based on servers, customers can use them like LinkAja and OVO Cash.
Difference Between Electronic Money and Digital Wallets
There is still confusion between the use of electronic money and digital wallets. However, both are different payment methods. Here are the differences:
1. Form
If the balance in e-money enters the chip and is then materialized into a card. Meanwhile, digital wallets or better known as e-wallets have their own servers, allowing users to simply access them through applications.
2. Usage
Usage between e-money and e-wallets is quite different. If transactions use e-money such as toll fees or other transportation payment tools. Meanwhile, e-wallets are used for BPJS dues, electricity, water, online shopping, data packages, and more.
3. Maximum Balance Amount
There is a significant difference in the balance amount between e-money and e-wallets. If e-money is limited to Rp1 million, e-wallets can have more, up to Rp10 million.
4. Transaction Security
Besides the maximum balance amount, there is another difference you need to know, namely transaction security. If electronic money does not require a PIN or password so anyone can use it. Meanwhile, digital wallets require a PIN and password so that not just anyone can access them.
After understanding the definition, legal basis, types, benefits, examples, and differences between electronic money and digital wallets, you can utilize them in business. To further develop your business, use payment methods that suit customer preferences. Brick can help you accept various payment methods and process them automatically.
