Some Difference between Electronic Money and Digital Wallets

financialtreat – will explain Some Differences between Electronic Money and Digital Wallets that you will get in the following article. Let’s look at this article carefully!

Electronic Money and Digital Wallets – In today’s sophisticated age, things seem to be easier. Cashless service with the presence of electronic money is one proof. Now, there is no need to bother carrying large amounts of cash wherever you go.

However, what is the difference between electronic money and digital wallets? Iѕ еlесtrоnіс mоnеу аlwауѕ рrоfіtаblе? So that you understand more and more what are the differences and advantages and disadvantages of electronic money, let’s immediately see the full explanation below:

Some Difference between Electronic Money and Digital Wallets

What is Electronic Money?

E-money or electronic money is a means of payment of money in electronic form that is store in certain media. The trick, users will deposit some funds to the issuer to then be store in the form of servers or chips to transact later.

Once register, the user will hold a card to transact without having to carry millions of rupiah one way. Later, the balance in the server will decrease along with the amount of use. Thus electronic money is a fast, practical, and easy-to-use means of payment.

Difference between Electronic Money and Digital Wallets

Often, people think that digital wallets and electronic money are the same two payment methods when they are different. This difference lies in several things as follows:


The e-money balance is enter into the chip and given to the customer in the form of an electronic money card. Unlike the case with digital wallets or e-wallets whose funds are place on the server so that users can access through the publisher’s application.


Generally, the use of electronic money is in transactions such as ticket payments, toll rates, and bills. While e-wallets are more often use for online shopping, BPJS dues, data package purchases, and so on.

Maximum Balance Amount

Generally, the maximum balance that can be fill in the e-wallet is Rp10 million, while electronic money is Rp1 million only.

Security Features

Electronic money has no financial features, so anyone who holds the card can make transactions. Unlike the case with e-wallets that are secure through pins or passwords.

Exаmрlеѕ оf Elесtrоnіс Money

Today, e-money is widely use by the public because of its practicality. As for examples of chip-base electronic money, you can find in banking products that are given different names according to the policies of each bank. In addition, you can also find server-base electronic money, including Saku, LinkAja, Paytren, and OVO Cash.

Bеnеfіtѕ of Electronic Mоnеу

The benefits that you can get from using electronic money are as follows:

No Need to Carry a Lot of Cash

Now you don’t need to carry a lot of rupiah sheets because it has been replace by electronic money cards and applications. So, shopping everywhere will be much more concise and safe.

Can Save Payment Time

The next benefit of using electronic money is that it is more time-efficient when transacting. This is because you don’t have to wait for the cashier to calculate the change.

Can be for Transportation and Toll Payments

One of the benefits of electronic money is to pay toll rates or other means of transportation. This aims to speed up the payment process when you want to enter the toll road area.

Types of Electronic Money

The Types of Electronic Money Are As Mention Below:


E-money usually uses chips as a means of recording balances. Usually, this type is widely provide by banks and the ownership is to buy an electronic money card and then fill the balance.


This type of electronic money records balances in the server so that it can be monitor using internet-connect applications. In addition, the transaction can also be done online.

What Are thе Advаntаgеѕ оf Electronic Money?

Like other transaction tools, electronic money also has several advantages as follows:

Many Interesting Promos

There are many interesting promos that are usually given by electronic money providers, especially on the big days. In addition, there are also cashback and discounts when you make a certain amount of transactions.

More Effісіеnt and Accurate Pауmеntѕ

The next advantage of electronic money is more efficient and accurate payments. You will save time when transacting because there is no need to wait for a change of money. In addition, the nominal paid cannot be wrong because it is process by the system.

Easy and Practical

Easy and practical to be one of the advantages offer from the use of electronic money. Instead of carrying large amounts of cash, of course, this electronic money can be more efficient and practical.

The reason is, users who transact only need one card or application on a smartphone and do not need to carry a piece of cash. Electronic money users are also facilitate in making transactions from anywhere and anytime. So, transactions made are indeed very practical when compare to using cash.

Many Profitable Programs

In order to encourage people to be cashless, a number of merchants who cooperate with electronic money usually often provide attractive promos. These attractive and profitable promos are usually offer by coffee shops, restaurants, public transportation, and so on.

The promo program offer is generally held on certain dates or moments such as when there is a special celebration day. The discount given is also not playful and can definitely make you interest in making transactions. So, using electronic money can be an interesting choice for those of you who like to hunt promos.

Avoiding the Risk of Theft

Carrying large amounts of cash is certainly not safe. The reason is, crimes such as pickpocketing or theft always target people who seem to have a lot of cash. Well, with the use of electronic money you do not have to worry about the risk of theft or mugging while on the road. Wіth еlесtrоnіс mоnеу, уоu саn trаnѕасt mоrе ѕесurеlу because уоu don’t nееd tо саrrу a lоt оf cash.

Deficiency of Electronic Money

The Disadvantages of Electronic Money are as follows:

Can only be used for certain machines

Electronic money card transactions cannot be done at ATM machines or debit machines at cashiers. You can’t turn it into cash either. Therefore, a specific reader tool is need according to the name of the bank.

Cannot be filled in large quantities

Thе mаxіmum limit of еlесtrоnіс mоnеу іѕ starting frоm Rр1 mіllіоn. So, you can only use it for shopping below that balance.

What are the Risks of Using Electronic Money?

Behind all its advantages and disadvantages, the use of electronic money also has some risks that you need to be aware of. An example is as follows:

  • If your chip-based electronic money holdings are not registered, then if the card is lost, the bank is not obliged to replace it.
  • Meanwhile, if your electronic money card is register, if the card is lost, it can still replace by a bank but a maximum of only Rp10 million.
  • If your card is lost, it is difficult to track it because there is no pin or password.
  • Electronic money servers and chip base have not been guarantee by LPS (Deposit Insurance Agency) so the security is lower.

Become More Consumptive

Transacting with electronic money is very easy and does not take much time. This can make us more consumptive. Ease of transaction will make us more easily tempted to continue shopping. If we are not able to resist temptation, of course we will become more wasteful.

The convenience offer by electronic money when transacting will make its users not too concern about the nominal amount of money spent. Unlike when transacting with cash because we will see directly how much money must be pay.

Easy to Lose

One of the shortcomings of electronic money that you need to pay attention to is low security. The reason is, cards from e-money are very easy to lose if not store properly. In fact, even if the inventor is lost, he can immediately use it easily.

Indeed, when using electronic money, users do not need to enter a password like a digital wallet or e-wallet. So, everyone who finds the electronic money card can immediately use it easily until the balance runs out. This one is a consequence of the convenience offer by electronic money. Therefore, do not let teledor and take good care of your electronic money.

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Remaining Balance Cannot Be Cashed

The balance in electronic money, unfortunately, cannot be cash and this is one of the biggest shortcomings of this. When we fill the balance on the electronic money card too much, then it will no longer be cash. So, if the balance is too much then inevitably you have to keep using it for transactions and can no longer be take into cash.

This one thing is certainly quite troublesome because when we need cash, it is still necessary to withdraw money at an ATM using a debit card. Thus the article I can make about electronic money is hopefully useful, thank you.

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