More people shift to cashless lifestyle

Riza Roidila Mufti


Carrying out daily transcations has never been easier for Dndhee Yuwono, a 29-year-old in Surabaya, as he only needs to open a digital wallet on his smartphone to make payments.

"I have gone days where I spend no cash since I'm able to pay for everything via my phone [using mobile payment]. From paying for transportation, buying food and purchasing other stuff, all using cashless payment system" Dundhee told The Jakarta Post recently. 

Dundhee, who said he went cashless most of the time, is utilizing a wide variety of cashless payment options such as Go-Pay and OVO, to a debit card and e-money card.

According to a study on consumer payment by Visa Worldwide, Indonesians have become more aware of cashless payment benefits. Visa Worldwide Indonesia President director Riko Abdurrahman said the wide variety of cashless payment oprions had made Indonesians more confident in going cashless. 

"Leading a cashless lifestyle is becoming easier and more attractive due to the numerous payment options available such as card payements, contactless payment and QR payments. Consumers are demanding a faster, more convenient and more secure payment experience," said Riko recently.

"People are now more confident without cash. This makes sense as there are many basic daily transactions that can be made through cashless payment options, from paying a toll, parking fees, paying for a meal when eating at restaurants and many more"said Riko

The study also shows that 77 percent of Indonesians expected their use of cashless payment options to increase in the next 12 months. Forty-one percent were also confident that Indonesia would become a cashless society within the next three years, up from the 2017 study when 15 percent of respondents thought that way. 

The cashless campaigns was launched for the first time by the government in August 2014 as an effort to make Indonesia a less-cash-society (LCS) country and within five years. Data from Bank Indonesia (BI) indicates how the cashless payment culture is rising as the volume and nominal trasaction of e-money has seen a significant increase. 

As of today, there are 24 e-money issuers from nonbank institutions and 12 issuers from banks, BI data shows. The number of e-money users from nonbank issuers has reached 113.5 million, while bank e-money users number at 60.3 million. 

One of the market leaders of cashless payment systems among non-bank institutions is PT Dompet Anak Bangsa (Go-Pay), the digital payment exists in ride hailing app Go-Jek. Go-Pay corporate communications head Winny Triswandhani said Go-Pay had experienced rapid growth in users, transaction and number of merchant partners introduced in April 2016.

BI's payment system policy depertment head, Filianingsih Hendarta, said despite the significant growth of e-money users, the penetration of cashless payment systems had ample room to grow. 


Source: The Jakarta Post