financialtreat – will explain about Mobile Payment; A Financial Services Trend in the Digital Age that you will get in the following article. Let’s look at this article carefully!
Just like the name suggests, mobile payment is a cashless payment using a mobile device. This type of payment is often chosen by modern and urban communities to answer various problems that occur due to the use of paper currency or coins. These problems such as small refunds, misse wallets, not carrying cash, or blocke ATMs.
Such conditions are often experience decades ago. Therefore, everyone should carry a wallet containing cash, debit cards, or credit cards.
Mobile Payment; A Financial Services Trend in the Digital Age
However, the current conditions are different, because currently payments can be made with a smart phone only, such as by scanning a QR Code or entering a phone number, then the user just has to enter the pin number and select confirmation.
With that convenience, everyone can choose food, clothing, or other needs quickly by using mobile payment.
Well, on this occasion, let’s discuss in full about mobile payment and the current trend of mobile payment development in Indonesia.
What is Mobile Payment?
So, mobile payment is a non-cash payment tool using smart phone devices that use various technological media such as QR Code, NFC, OTP code, etc.
In making payments digitally using smart phones, each user must have digital money or e-wallet first. Some of the e-wallets that are currently famous in Indonesia are GoPay, Dana, Ovo, FlexiCash, Dompetku, Mandiri e-Cash, ShopeePay, etc.
Then on an international level, some well-known e-wallets are PayPall, PayPass MasterCard, Google Wallet, Alipay, and also WeChat Pay which is currently successful as the king of e-wallets in Asia.
The Development of Mobile Payment in Indonesia
Base on one of the surveys relate to Global Consumer Insight in 2019 conducted by PricewaterhouseCoopers (PwC), complete data was obtaine that mobile payments are currently ingraine in the midst of people’s lives in Indonesia.
As many as 47% of respondents from indonesian people reveale that they already use their mobile devices as a means of payment. This figure is proven to increase by 9% from 2018 which was still 38%. Then, the results of this PWC survey also further strengthene the position of digital-base businesses as one of the economic drivers in Indonesia.
Then, MDI Ventures and Mandiri Sekuritas have conducte a study whose result is that the volume of transactions using mobile payments in Indonesia reache USD 16.4 billion in 2019.
In addition, world research institute Statista state that the mobile payment market as a whole touched USD 154.4 billion in 2019 and even the figure is predicte to increase to USD 274.4 billion by 2021.
This indicates that this business opportunity is in fact very tempting. No wonder if now there are many local companies that cooperate with foreign parties to enter the mobile payment business.
In order to be able to embrace many consumers, they are competing to be able to create a comfortable ecosystem. By paying attention to the mobile payment market share in Indonesia which is very large and also potential, various companies are also competing in providing the best features and promos that are certainly interesting.
3 Mobile Payment Trends in Indonesia
1. Server-Base Electronic Money VS Chip
Before the introduction of chips, there was already a USSD technology or Unstructure Supplementary Service Data which was introduce by Telkomsel and Indosat through Tcash which is currently LinkAja and Dompetku which is currently PayPro.
That is, USSD is a short message technology that bridges communication between smart phones and mobile operator services. The technology on this USSD message generally begins with an asterisk and ends with a fence sign.
For example, by using My Wallet, you will be able to pay bills, charge credit, send money, etc. You just have to type *789# and follow the next instructions. However, USSD technology is not able to run optimally.
Then, various local major banks began to make mobile payment services by utilizing cards, which containe chips. Examples are BRI with Brizzi products, Mandiri with e-Money, and BCA with Flazz.
In fact, these chip-base digital payments are very easy to use and also effective. All users only have to attach the card to the scanner and the balance will be deducte automatically.
So, many users take advantage of this carut at toll gates, stations, or TransJakarta.
However, currently more and more users are switching to using server-base electronic currencies, where they can use smartphone applications only.
MDI Venture reporte that in 2016, GoPay recorde a very high Gross Transaction Volume than Mandiri e-Cash and TCASH.
2. QR Code Feature So Prima donna
In 2018, the digital payment business in China could touch the USD 5.5 trillion mark. One of the drivers is the implementation of QR Codes led by Tencent Pay and Alipay. Both are players who control about 90% of mobile payments in China.
This example of real success was immediately use as an opportunity by Bank Indonesia. On the 74th Anniversary of Indonesia on August 17, 2019, Bank Indonesia has officially launche the QR Code Indonesia Standard or QRIS, a STANDARD QR that can be use for various payments in Indonesia.
The code develope by BI and the Indonesian Payment Association is able to facilitate every merchant if there are consumers who want to make payments with a mobile application. Because, QR Codes are able to accept various payments electronically.
The method of use is the same. Every consumer only has to scan the QR Code at each merchant by utilizing their smartphones.
For information, this QRIS has been prepare using emc co international standards, which are classifie as safe. What’s more, this standard has also been use by South Korea, India, Malaysia and Singapore.
So, what are the true benefits of using QRIS? Base on the press release with the theme “QRIS, one QR Code for all payments” issue by the BI Communication Department on August 17, 2019, BI Governor Perry Warjiyo explaine that QRIS has a SUPERIOR spirit, namely Universal, GampanG, Untung, and Direct, whose purpose is:
UNiversal: QRIS can be use by all communities and not only for domestic payments, but also for abroad.
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3. Application of big data
The trend of mobile payment in Indonesia that is no less important is the implementation of big data. MDI ventures and Mandiri Sekuritas report that in fact it also emphasizes the application of big data in mobile payments. Big data is a very large, complex and growing data set every time. This data is generate from internet activities that are increasingly routinely carrie out, both for personal and business purposes. For example, initially important information from you may be in the form of name, address and phone number data.
At a minimum, there are several things that every entrepreneur or business person can do in utilizing this big data. What’s more, the implementation of big data can produce many benefits, such as improving credit scores, detecting fraud, determining transaction risk, etc.