Digital Payment in Indonesia
The earliest means of payment was a barter system between goods that were traded. However, problems arose when two people wanting to exchange could not agree on the exchange value, or one party did not really need the goods to be exchanged.
The payment system continues to evolve following the evolution of money, with 3 driving elements: technological innovation & business models, community traditions, and authority policies. The earliest means of payment was a barter system between goods that were traded. However, problems arose when two people wanting to exchange could not agree on the exchange value, or one party did not really need the goods to be exchanged.
Payment instruments in Indonesia have developed very rapidly and advanced. Payment instruments have continued to evolve from cash-based instruments to non-cash instruments such as paper-based instruments, for example checks and giro slips processed using clearing/settlement mechanisms. In addition, paperless payment instruments are also known, such as electronic fund transfers and payment instruments using ATM Cards, Credit Cards, Debit Cards, and Prepaid Cards (card-based).
In the last decade, a wave of digitalization and its penetration into people's lives has drastically changed public behavior. Payment instruments have become increasingly varied with the presence of card-based (chip based) and server-based electronic money. Consumption patterns have also begun to shift and demand payments that are fully mobile, fast, and secure through various platforms including web, mobile, Unstructured Supplementary Service Data (USSD), and SIM Toolkit (STK).
A cash payment system is a payment system that uses currency (banknotes and coins) as the means of payment. Meanwhile, non-cash payment instruments include cards, checks, giro slips, debit notes, and money
The digital payment era began with payment cards, both credit and debit cards. The popularity of the payment card era began in the 1980s. In Indonesia itself, throughout 2016, Bank Indonesia recorded transactions of Rp. 5,623.91 trillion from the use of ATM/debit cards, while credit card transactions reached Rp. 281 trillion. Since then, payment method development in Indonesia has progressed, marked by the emergence of m-banking. At almost the same time, e-money and e-wallets began to appear. The difference between e-money and e-wallets is the balance limit that can be topped up, namely 1 million for e-money and 10 million for e-wallets.
In the following years, many types of digital-based payments emerged, such as OVO, GoPay, Dana, PayPal, Shopee Pay, and many more. This is inseparable from the many startups that also began to emerge, so each company tried to create its own digital payment method. The development of digital payments has many benefits for Indonesian society and can certainly increase payment efficiency in every line of business transactions or economic sector.
ADVANTAGES and DISADVANTAGES
| Advantages | Disadvantages |
| Faster Transactions | More Consumptive |
| Many Tempting Promos | Needs a Strong Internet Signal |
| No Problems with Change | There Are Limits |
References:
- https://www.bi.go.id/id/fungsi-utama/sistem-pembayaran/default.aspx
- https://www.digination.id/read/01513/3-era-perkembangan-digital-payment-di-indonesia
- https://bayarind.id/news/sistem-pembayaran-digital-mengulik-kelebihan-dan-kekurangannya
Group Name: DigiSix
Group Leader: Wahid Nur Hamid (1101228081)
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- Tigar Isya Prasta (1101228083)
- Ilham Mu’tashim Billah (1101228085)
- Erico Eko Nugroho (1101228102)
- Fadhillah (1101228098)
- Edwin Nugroho (1101228106)
