The development of transaction methods is increasingly rapid day by day. Paying for anything is now easier and faster. In Indonesia, Indonesian people's way of transacting continues to change.

Do you still remember that non-cash or cashless transactions actually started with the arrival of debit cards, credit cards and payments via EDC machines? According to a review from Kumparan, this change in transaction form began with Bank Indonesia regulations regarding electronic money in 2009. Furthermore, in 2014, Bank Indonesia launched the National Cashless Movement (GNNT) to encourage electronic money transactions. After a number of these payment methods became part of people's daily lives, mobile banking and internet banking slowly appeared. Recently, electronic money has emerged, followed by various e-wallet services that only require a smartphone for all transactions. As of 2019, Bank Indonesia (BI) data recorded 38 digital wallets (e-wallets) with official licenses. The presence of various e-commerce services in Indonesia is also one of the factors causing the rapid growth of cashless transactions. With the presence of this facility, recorded in January 2019, the growth of cashless transactions in Indonesia managed to increase by around 15.3%.

Even though the development seems very rapid, the plan for a cashless society (cashless society) does not seem to be realized in the near future. According to Detik, Bank Indonesia data shows that in 2018 around 99% of the money circulating in society was still in physical form, and the rest was cashless. This means that the road to a cashless society is still very long.

There are several things that make it difficult for Indonesian people to switch completely. From the same article, the Financial Services Authority (OJK) found that the financial literacy index of Indonesian society in 2019 was still around 38.03% of the entire population. In fact, more than half of Indonesian people do not have a good level of financial literacy, so non-cash products are difficult to adopt as a habit. Traditional markets, stalls and small kiosks which accommodate so many daily transactions also still find it difficult to implement a non-cash payment system. There needs to be learning, technology adoption, and system adjustments to be able to switch to cashless transactions. This certainly requires a fairly long adaptation process.

Safe, Convenient, and Still Making Money with a Digital Wallet for Payments

So, what are the actual advantages of switching to cashless? Why do we need to take part in the movement towards a cashless society in Indonesia?

1. Safe and Practical

It is common knowledge that storing cash is a big risk because it is more prone to theft. Cash also obviously takes up more space, both in your wallet and in your trouser pockets. This is very different from non-cash payment tools, such as debit cards which rely on chips, or digital wallets which make it easy for us to check and access accounts only through smartphone applications. Technological developments also now present a QR payment feature in e-wallets which is easier to use and more responsive than electronic money or e-money.

Ipsos survey in the media Merdeka shows that people choose to use payments non-cash people feel confident, safe and comfortable because they can control their spending. Digital payments present a fun new experience in making transactions. Transactions become more practical because you don't need to think about change and change.

2. There are Promos and Rewards for Users

Have you ever looked for cashback promotions at certain restaurants or food outlets when you just got paid? Yes, promos and rewards are one of the benefits that e-wallet users can get. Similar companies such as OVO, GoPay, and so on often hold cashback promotions of up to 50% discounts for customers who want to make transactions. In fact, now there are special applications that provide various types of vouchers and cashback.

Katadata reviews various promos and cashback this is a "burn cash" strategy used by almost all fintech companies. Not only to compete between fintech companies, this strategy is used to educate the public to use digital payments. Apart from that, this strategy aims to increase public trust, experience convenience and security in transactions, and foster the habit of using non-cash payments.

We know that most people will always be interested in discounts and promotions. It seems that this strategy will continue to be used until people are accustomed to using non-cash transactions and become a cashless society. Therefore, not only customers benefit, business owners also benefit because they bring in more customers. So it's a win-win solution, right?

3. Making Online Shopping Transactions

One ​​of the things that makes online shopping increasingly popular is the existence of non-cash payment services. With this facility, shopping becomes even easier. Imagine, with just the touch of a finger, voilà, the goods arrive home a day later! This change in shopping behavior has resulted in the proliferation of online shops, e-commerce and marketplaces. As explained in Media Indonesia, the circulation of money through this digital platform is extraordinary, with the number of e-commerce transactions per month reaching IDR 11 trillion to IDR 11 trillion. IDR 13 trillion in 2019. The existence of e-commerce also shows a contribution to Indonesia's economic growth, although it is still on a small scale.

Unfortunately, although several e-commerce services already provide payments via e-wallet, the use of mobile banking and credit cards for online shopping still dominates. In fact, non-cash transactions via digital wallets are one of the most efficient ways of carrying out various transactions. Without having to bother making transfers with additional administration fees or worrying about including credit card data in the e-commerce application, we can make online shopping payments more comfortably and practically via e-wallet. For the Indonesian economy, fast and easy non-cash transactions also support increased public consumption, so that the circulation of money runs faster.

4. Financial Flows Are Better Monitored

Every time you make a non-cash transaction, all transactions will be recorded in the system accurately. The e-wallet application is equipped with a feature that records every transaction made, so you can check the flow of your expenses. This is quite useful for those of you who have difficulty making a budget or monthly expenses. However, it is also important to take other steps to use e-wallets carefully. For example, you can pay various PLN, cable TV and BPJS health bills, which usually have the potential to provide cashback if used appropriately. Apart from that, you can also limit the money allocated in this electronic wallet. This way, your expenses will become more organized.

5. Cashless Transactions Already Accepted in Many Places

Well, you don't need to worry about switching to cashless because now almost all businesses, including retail, restaurants and services already provide cashless transactions. From something as simple as providing an EDC machine, to digital transactions using e-wallet. For example, businesses that use Qasir as a point of sales can now accept transactions using DANA. Payments via other e-wallets such as OVO, GoPay, and LinkAja will also follow soon.

In the process, non-cash payment methods are not completely perfect. One example is electronic money and digital wallets which have the potential to make people more consumptive in shopping. Transaction success is also determined by the gadget and the quality of the network we have. As a result, our daily lives are increasingly dependent on technology. Even so, cashless transactions actually have many advantages on a national scale. If we are able to use it well, this will not only benefit society collectively, but also us individually, namely by providing a much different experience and ease of transaction than before.

So, how is BossQ? Are you ready to be part of the cashless society?