About 6 years ago, namely 14 August 2014, Bank Indonesia launched the National Non-Cash Movement (GNNT) to support Indonesia to become a cashless society. And when the pandemic occured since March 2020, the growth of digital ecosystems and finance is even more vibrant!
Reporting from idnfinancials.com, in January 2021, the value of non-cash transactions increased by 30.71% compared to the previous period in 2020. This non-cash transaction also includes digital payments, which are often used as a solution for the community due to social restrictions during the pandemic.
This non-cash lifestyle certainly makes us often hear the terms fintech such as electronic wallets or payment gateways. But what is the difference between the two? Find out the answer in the review below!
Electronic wallet aka e-wallet is an application that functions the same as our physical wallet, it’s just that this wallet is available online. So, we can save money and buy goods and services using e-wallets.
Transactions with e-wallets can be done via computers or via our cell phones. Usually, e-wallets also contain our data, such as KTP information, shipping addresses, and credit card information. E-wallets also consist of several types, namely:
1. Digital wallet
This one wallet is usually linked to a certain bank account and we cannot use it to store money. However, digital wallets can make it easier for you to transact more quickly and easily, simply by entering your username and password.
We can use e-wallets to save money as well as make transactions. Our personal information and financial records will also be stored here.
3. Mobile wallet
Have you ever heard of the term tap to pay? So when it comes to the store, we just have to choose the items you want to buy and immediately use your cellphones to pay for them. This process is supported by devices that have Near Field Communication (NFC) technology.
Meanwhile, payment gateways are services provided to accept credit card payments online. This service is used to verify credit card holders to ensure there is no fraud in the transaction process.
So, after customers add the products they want to buy to the shopping cart, the payment gateway will make sure that the customer uses their payment card. Hence, when shopping on e-commerce, customers need to enter their credit card details. After the verification process, then the payment can be continued.
Well, besides payment gateways, there is also what is known as a payment gateway aggregator, namely a financial service provider that combines various payment options to make it easier for customers.
To become a payment gateway aggregator, service providers need to obtain permission from the financial regulator in their country. If in Indonesia, of course the regulator is Bank Indonesia (BI). In addition, the payment gateway aggregator also requires Payment Card Industry Data Security Standard (PCI DSS) certification.
Will electronic wallets be the payment of the future?
Indeed, electronic wallets will become increasingly popular in the future. Because before the Covid-19 pandemic, many customers had switched to using digital wallets. This habit continues and over time it will replace cash. Apart from that, physical stores in the future will also have NFC technology that supports the acceptance of digital payments.
However, this may not completely replace our physical wallets. You see, there are a number of things that we must carry, for example, such as ID cards, credit cards, and driving licenses. However, all of this will also depend on future government policies. So, if you are alone, have you entered into a non-cash society?