Current technological developments can affect many human activities. If the past people used to barter, over time this began to be replaced by money. But money has also gone through many changes, one of which is electronic money, which allows users to carry money very easily. Then not only electronic money but also known as e-wallets.
What is an e-wallet?
A digital wallet or e-wallet is an electronic device, service, or even a software program (application) that allows users to make online transactions with other users to purchase goods and services. The way to top up e-wallets can be done by linking a bank account to a digital wallet account or going to a minimarket that provides services to top up the balance for an e-wallet.
How does the condition in Indonesia?
E-wallet has become an innovation in payment methods that are useful for new style transactional or payment, especially for Indonesian. Surprisingly 52% of Indonesia people are still unbanked, they are used to pay with cash only because the transaction is faster rather than using cards. Rather than make a bank account, lots of people use an e-wallet to replace them. Also, many entrepreneurs use digital payment option services. So that many e-wallet services have emerged.
Moreover, Indonesia is a country that is ranked the fourth-largest smartphone economy in the world. Based on data from Bank Indonesia, which regulates all transactions in Indonesia, report that the development of e-wallet in the last 2018 has increased by 209,8% up to 2,9 billion rupiahs compare to 2017 in 943 million.
See this good growth. Then in the earlier month, the government is concern about the potential of e-wallet. Then to create a sense of security, the central bank has changed the QR code with standardized QRIS (Indonesian Standard QR code) to avoid a large number of barcodes, making it easier for entrepreneurs such as small and middle-scale enterprises (SMEs) who are required to provide many e-wallet payment models, with total 37 local payment methods (LPMs) in Indonesia.
Let’s take a look at several famous e-wallets in Indonesia, it is based on the highest number of active users in the second quarter of 2019 and 2020. There is at least four biggest company which participated well for society. They are Go-pay, Link Aja, OVO, and Dana. They compete to gain local customers as much as possible by providing practical payment methods and discount warfare.
There is foreign digital payment. Facebook’s plan to make an e-commerce ecosystem in collaboration with GoJek’s company uses WhatsApp as a popular messaging application to get interaction easily with the customers. Also, PayPal’s company is committed to GoJek to gain customers with Go-pay users. It might be the users can buy products in the merchant global using Go-pay as the payment.
Along with the entry of various choices of digital wallets, both domestic and foreign, offer a variety of different discounts to attract customer’s attention. Indonesia made new regulations for e-commerce and entrepreneurs who want to start their business in the online market, as well as hopes of creating an infrastructure to facilitate an efficient digital payment market share which will apply in the next year, 2021. Indonesia should be ready for the next digital payment battleground in Southeast Asia.