E-money is: definition, types, advantages and disadvantages

E-money is a form of technological advancement in the financial sector. In recent years, the use of e-money or electronic money has increased. If in the past you had to carry a lot of cash for payment transactions, now that has changed. What is e-money? See the full discussion below.

What is e-money?

E-money is a means of payment in electronic form. Where the monetary value is stored in certain electronic media. An example is a map. To be able to use electronic money, users must first deposit a certain amount of money with the issuer. The electronic media used to store electronic money is usually in the form of a chip or server. For security reasons, electronic money is very safe because it is difficult to hijack or hack.

After that, the money is stored in electronic media before being used for payment transactions. When electronic money is used for payment transactions, the balance stored in it decreases according to the transaction value. When the credit runs out, users can refill or top up. So if you want to pay for something, you can use a card instead of cash.

Types of E-money in Indonesia

According to BI's official website, the following is a list of e-money that has received permission and can be used for transactions:

• Bank DKI – JakCard

• BCA (Bank Central Asia) – Flazz

• Bank Mandiri – Mandiri e-Money

• Mega Bank – Mega Cash

• BNI (Bank Negara Indonesia) – TapCash

• Nationalnobu Bank – Nobu e-Money

• BRI (Indonesian People's Bank) – Brizzi

• Telkomsel (Cellular Telecommunications) – Tap-izy

• PT Kereta Commuter Indonesia (KRL) – KMT

• PT Mass Rapid Transit (MRT) – MTT

Advantages and Disadvantages of E-money

Advantages

• concise

The first advantage of electronic money is, of course, its brevity.

With an e-money card, you can carry up to one million rupiah without breaking the bank. Apart from that, electronic money also does not require a PIN (Personal Identification Number) code or signature. When paying, all you have to do is connect it to the reading machine.

• Facilitate Transactions

You must have stood in pintu hourly toll while out of town? Since everyone pays in cash, many deliberately overspend doing billing, waiting for change, and more. Even if sometimes there are still long lines, at least it's much better now than cash.

Electronic money is the right solution for places that require fast transactions, such as toll booths.

Deficiency

• Only Used on Specific Machines

The main disadvantage of e-money is that you can only use it with certain machines. This card cannot be used for online shopping, ATMs which are usually located at the checkout, or even ATMs.

• Cannot be Filled Too Much

Even though its use is rare, another drawback of e-money is that it cannot be topped up. This is because electronic money does not require a PIN code or any type of verification. If the card is suddenly lost, the money on the card is also lost.

• Recharging Enough Hassle

If you want to top up electronic money, each bank has its own method. However, the majority can be settled through a bank by entering direct debit and then placing electronic money where provided.

That is a complete explanation of e-money and its advantages and disadvantages.

In short, e-money is a very convenient payment method, although it also has some drawbacks.

We hope that after reading this article you can use e-money wisely.