The growth of payment instruments has increased rapidly, in line with developments in technology in the payment system sector which is currently developing. One of them is the emergence of a payment instrument known as electronic money (e-money).

Electronic money emerged as an answer to the need for micro payment instruments that are expected to be able to process payments quickly at relatively low costs and can be accessed quickly and safely.

The use of electronic money as an alternative to non-cash payments has considerable potential to reduce the growth rate of cash use.

Electronic money offers a faster and more convenient transaction, especially for transactions of small value, because with electronic money these transactions can be done more easily and cheaply and guarantee the security and speed of transactions, both for consumers and for merchants.

In Indonesia, there are two types of electronic money, namely, chip or card-based electronic money and server-based electronic money which is accessed through an application on a smartphone.

To use electronic money as a means of payment, the user first deposits an amount of money to the issuer, either directly, through an issuing agent, or by debiting an account at a bank and the value of the money is entered into the value of money in the electronic money medium (card or server), which is stated in the currency (for example: Rupiah) used to make payment transactions.

In Bank Indonesia Regulation Number 16/8/PBI/2014 in article 1 paragraph 3 and 4 states that Electronic Money is a payment instrument that meets the following elements:

  1. issued on the basis of the money value previously paid up to the issuer;
  2. the value of money is stored electronically on a server or chip media;
  3. used as a means of payment to merchants who are not the issuers of the electronic money; and
  4. the value of electronic money managed by the issuer is not a deposit as referred to in the law governing banking.

Electronic Money Value is the value of money stored electronically on a server or chip that can be transferred for the purpose of payment transactions and/or fund transfers.

Meanwhile, the type of electronic money according to Bank Indonesia Regulation Number 16/8/PBI/2014 in article 1A paragraph 1 to 3 states that based on the recording of the identity data of the holder, electronic money is divided into 2 (two) types, namely:

  1. Electronic money in which the identity data of the holder is registered by the issuer (registered).
  2. Electronic money where the identity data of the holder is not registered by the issuer (unregistered).

Facilities that can be provided by the issuer for the registered electronic money are in the form of:

  • registration of holders;
  • top up;
  • payment transactions;
  • bill payment;
  • transfer of funds;
  • cash withdrawal;
  • distribution of government assistance programs to the community; and/or
  • other facilities based on approval from Bank Indonesia.

Facilities that can be provided by the issuer for the unregistered electronic money are in the form of:

  • top up;
  • payment transactions;
  • bill payment;
  • other facilities based on the approval of Bank Indonesia.

Electronic money has different characteristics from card-based payment instruments such as credit cards, charge cards and debit or ATM cards.

Table 1. Difference of Electronic Money and Card-Based Payment Instruments

No.Electronic MoneyCard-Based Payment Instruments
1The value of money is recorded in the electronic money instrumentThe value of money is not recorded in on the card instrument
2The funds are fully in the control by the holderThe funds are fully in the control by the bank
3Payment transactions are carried out offline to the issuerPayment transactions are carried out online to the issuer

 

In its use, chip/card-based electronic money can be used by attaching a card to a device called EDC (Electronic Data Capture). The card that functions as a substitute for the money has an RFID (Radio Frequency Identification) chip embedded in it that is connected to a computer network and the internet, as a digital storage medium using EFT (Electronic Funds Transfer).

Meanwhile, server-based electronic money can be used by transferring via a virtual number and scanning a barcode using an application on a smartphone.

Based on data from Bank Indonesia, it is stated that electronic money issuers in Indonesia that are registered with Bank Indonesia are as follows:

Table 2. Electronic Money Issuers in Indonesia

No.

Issuer Name / Operation Date

Electronic Money Product Name

Information

1

BPD DKI JAKARTA

3 July 2009

Jak Card (Card)

Jak One (Server)

Starter Pack: IDR 20,000,

Minimum Balance: No Limits

Maximum Balance: IDR 1 million

2

BANK MANDIRI

3 July 2009

e-Cash (Server)

 

 

 

e-Money and e-Tollpass (Card)

Cash on Mobile

Minimum Balance: No Limits

Maximum balance: IDR 1 million

IDR 5 million

Card Closing:    IDR 5,000

Minimum Balance: No Limits

Maximum balance: IDR 1 million

3

BANK CENTRAL ASIA

3 July 2009

Sakuku (Server)

 

 

DUITT (Server)

 

 

 Flazz (Card)

Cash on Mobile

Minimum Balance: No Limits

Maximum balance: IDR 1 million

IDR 5 Million

Cash on Mobile

Minimum Balance: No Limits

Maximum balance: IDR 1 million

IDR 5 million

Minimum Top Up:  IDR 20,000

Minimum Balance: No Limits

Maximum balance: IDR 1 million

4

PT. TELEKOMUNIKASI INDONESIA (PERSERO) TBK

3 July 2009

Flexi Cash (Server)

iVas Card (Card)

 Starter Pack: IDR 100,000

Minimum Top Up: IDR 2,000

5

PT. TELEKOMUNIKASI SELULAR

3 July 2009

tcash (Server)

Tap Izy (Card)

Minimum Balance: No Limits

Maximum balance:

IDR 1 million

IDR 5 million

6

BANK MEGA

3 July 2009

MegaMobile/MegaVirtual (Server)

MegaCash (Card)

 

7

PT. SKYE SAB INDONESIA

3 July 2009

SKYE Mobile Money   (Server)

SKYE Card (Card)

Maximum balance:

IDR 1 million

IDR 5 million

8

PT. INDOSAT

3 July 2009

Dompetku and IMKas (Server)

Maximum balance:

IDR 5 million

9

BANK NEGARA INDONESIA

3 July 2009

TapCash (Card)

UnikQ (Server)

No Minimum Transaction

Maximum balance:

IDR 1 million

10

BANK RAKYAT INDONESIA

29 December 2010

Brizzi (Card)

 

MoCash and T Bank (Server)

Maximum balance:

IDR 1 million

11

PT. XL AXIATA

29 March 2011

XL Tunai (Server)

Maximum balance:

IDR 1 million

IDR 5 million

12

PT. FINNET INDONESIA

1 June 2012

t-money (Server and Card)

Finpay Money (Server)

Starter Pack: IDR 100,000

Minimum Top Up: IDR 2,000

13

PT. ARTAJASA PEMBAYARAN ELEKTRONIK

21 November 2012

ARTAJASA and MYNT E-money (Server)

14

BANK PERMATA

23 January 2013

BBM Money  (Server)

Maximum balance:

IDR 1 million

IDR 5 million

15

BANK CIMB NIAGA

27 March 2013

Rekening Ponsel  (Server)

Maximum balance:

IDR 1 million

IDR 5 million

16

PT. NUSA SATU INTI ARTHA

25 March 2013

DokuPay (Server)

17

PT. BANK NATIONAL NOBU

29 April 2013

Nobu e-Money (Card)

 

Nobu Pay (Server)

Maximum balance:

IDR 1 million

18

PT. SMARTFREN TELECOM 16 June 2014

Uangku (Server)

Maximum balance:

IDR 1 million

IDR 5 million

19

PT. MV COMMERCE INDONESIA

29 September 2014

PonselPay (Server)

20

PT. WITAMI TUNAI MANDIRI

5 January 2015

truemoney (Server)

Initial Deposit: IDR 20,000

Minimum deposit: IDR 20,000

Maximum balance:

IDR 1 million

IDR 5 million

21

PT DOMPET ANAK BANGSA

17 June 2014

GoPay (Server)

Maximum Balance:

IDR 1,000,000 (Unverified User)/IDR 5,000,000 (Verified User)

 

Minimum Top Up: IDR 10,000

Maximum Top Up per month: IDR 1,000,000 (Unverified User)/IDR 10,000,000 (Verified User)

22

PT ESPAY DEBIT INDONESIA KOE

5 December 2018

 

Dana (Server)

Maximum balance:

IDR 2,000,000 (Regular) /

IDR 10,000,000 (Premium)

23

BANK QNB INDONESIA TBK

Dooet (Server)

24

BPD SUMSEL BABEL

BSB Cash (Server)

25

PT BUANA TEKNOLOGI

Gudang Voucher (Server)

26

PT BIMA SAKTI MULTI SINERGI

Speed Cash (Server)

27

PT VISIONET INTERNASIONAL

OVO Cash (Server)

28

PT INTI DUNIA SUKSES

iSaku (Server)

29

PT VERITRA SENTOSA INTERNASIONAL

Paytren (Server)

30

PT SOLUSI PASTI INDONESIA

KasPro (Server)

31

PT BLUE PAY DIGITAL INTERNASIONAL

Blue Cash (Server)

32

PT EZEELINK INDONESIA

Ezeelink (Server)

33

PT E2PAY GLOBAL UTAMA

M Bayar (Server)

34

PT CAKRA ULTIMA SEJAHTERA

DUWIT (Server)

35

PT AIR PAY INTERNASIONAL INDONESIA

Shopee Pay (Server)

36

BANK SINARMAS TBK

Simas E Money (Server)

37

PT TRANSAKSI ARTHA GEMILANG

Otto Cash (Server)

38

PT FINTEK KARYA NUSANTARA

Link Aja (Server)

39

PT MAX INTERACTIVES TECHNOLOGIES

Zipay (Server)

40

PT SARANA PATCTINDO

PAC Cash (Server)

41

PT DATACELL INFO MEDIA

PayDia (Server)

42

PT NETZME KREASI INDONESIA

Netzme (Server)

43

BANK BNI SYARIAH

Hasanah Ku (Server)

44

PT MNC TEKNOLOGI NUSANTARA

SpinPay (Server)

45

PT KERETA COMMUTER INDONESIA

KMT (Card) (Server)

46

PT MAS RAPID TRANSIT

KMT (Card) (Server)

47

PT ASTRA DIGITAL ARTA

Astra Pay (Server)

48

BANK OCBC NISP

One Wallet (Server)

49

PT RPAY FINANSIAL DIGITAL INDONESIA

Your Pay (Server)

50

PT VISI JAYA INDONESIA

EiduPay (Server)

51

BANK JABAR DAN BANTEN

DigiCash (Server)

 

The development of the use of electronic money in Indonesia during the last ten years had increased significantly, this increase can be seen from the figures for electronic money in circulation as shown in the following table:

Table 3. The Amount of Electronic Money in Circulation

YearAmount
20107,914,018
201114,299,726
201221,869,946
201336,225,373
201435,738,233
201534,314,795
201635,876,523
201751,204,580
201890,003,848
2019167,205,578
2020292,299,320

Source: https://www.bi.go.id/

From the table, there was a slight decrease in 2014 and 2015, but in the following year it increased by around 40%. In fact, in 2020 the amount of electronic money circulating in Indonesia is 37 times higher than ten years ago.

Then the development of the use of electronic money in Indonesia can also be seen from the transactions that have been made as shown in Table 4.

Table 4. Electronic Money Transactions

YearVolume (Transaction)Nominal (In Million Rupiah)
201026,541,982693,467
201141,060,149981,297
2012100,623,9161,971,550
2013137,900,7792,907,432
2014203,369,9903,319,556
2015535,579,5285,283,017
2016683,133,3527,063,688
2017943,319,93312,375,468
20182,922,698,90547,198,616
20195,226,699,919145,165,467
20204,625,703,561204,909,170

Source: https://www.bi.go.id/

From this table, the electronic money transactions have increased significantly in the number of transactions and the nominal amount of money.

With the development of the use of electronic money, the infrastructure for electronic money has also increased every year, as shown in Table 5.

Table 5. Electronic Money Infrastructure

 

YearReader Machine (Unit)
2013139,157
2014206,826
2015281,988
2016374,861
2017691,331
2018923,624

Source: https://www.bi.go.id/

From these data it can be concluded that the use of electronic money is very helpful for the community in terms of payment transactions, especially during a pandemic, where people are asked to reduce contact with other people, either physically or through means (banknotes). This is evidenced by the increase in the money supply and the number of transactions both volume and nominal throughout 2020.