Nowadays almost everyone knows what E-money is, as it is an electronic form of money that has become a must-have item to carry anywhere. E-money serves as a replacement for cash with its more modern and practical existence.
With its convenience and space-saving form, the public has switched to using electronic money because it offers easier services. It is not surprising that the implementation of E-money is the best choice for more practical and simple payment transactions.
What is E-Money?
E-money or electronic money is money that is stored in the banking system and is supported by electronic transactions usually in the form of a chip card to support transaction activities, and issued by banking institutions.
Although its value is equivalent to the amount of cash that can be used for daily buying and selling, the nominal value of E-money cannot be cashed back.
This is because the purpose of using this card is only to support electronic transaction activities, and E-money is different from e-wallets.
The difference between the two is in the fundamental payment method used. E-money is based on a chip that can only be used on card readers, while e-wallets are more server-based.
Uses of E-Money
The availability of E-money also has many uses, such as supporting payment for toll fares, and train tickets, especially for the KRL commuter line, paying for parking, paying for bus tickets, or even shopping at mini markets and supermarkets.
This is similar to using a debit, but with E-money, you can support transaction activities for the value inside the card, which will decrease and increase when recharged.
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Advantages of E-Money
1. Provides Transaction Convenience During Travel
Using electronic money is very simple and makes transactions much easier, especially when traveling and waiting in toll queues.
This is because many people still use cash payments, which often require large bills to be broken and waiting for change. Although long queues can still be found at times, using E-money is much better than using cash, especially when needing to make quick transactions at toll gates.
E-money is the best solution for vehicles that require high speed and faster transactions when passing through toll gates.
The advantage of E-money is its compactness because users only need to carry a card instead of a thick wallet with at least 1 million rupiahs in cash.
Using E-money also does not require a PIN or signature when making transactions, making it very practical and not causing congestion when traveling on toll roads or supporting other payment transactions that only require tapping the card reader, and the balance in the E-money will decrease according to the purchase payment made.
Disadvantages of using E-Money
1. Inconvenient Refill
When refilling E-money, each bank has its own method, but it usually involves depositing money and then tapping the E-money card on the provided device. Refilling can also be done through mobile banking, but the phone used must have NFC service.
This is because, like other refill methods, the E-money card must be tapped to update the balance inside. Therefore, a refill can only be done if there is a need for electronic money to make certain payments.
2. Only Usable on Specific Machines
The main disadvantage of E-money is that it can only be used on specific card readers. This type of card cannot be used for online shopping, debit machines at cashiers or ATMs.
E-money is in the form of a chip card, and the amount loaded onto the card cannot be transferred or refunded in cash but must be used for transactions.
3. Limited Refill Amount
Although E-money is very convenient, it also has a disadvantage that users cannot refill it with large amounts of money.
This is because E-money does not require any PIN or verification when making transactions. If the card is lost, the money on the E-money card will be lost as well. Therefore, owners need to adjust their refill amount according to their needs when using E-money.
That is an introduction to what E-money is, which is now widely used by people for various payment needs as very compact electronic money that can be taken anywhere. While using E-money has advantages and disadvantages, users can refill their card balances to support their transactions, but the amount cannot be too large.