THE USE OF DIGITAL WALLET APPLICATIONS FOR FINANCIAL TRANSACTION ACTIVITIES AMONG MILLENIALS IN INDONESIA - OSF
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THE USE OF DIGITAL WALLET APPLICATIONS FOR FINANCIAL
TRANSACTION ACTIVITIES AMONG MILLENIALS IN INDONESIA
Rizky Ayu Khoirun Nisa'
Email : rizky.ayu.khoirun-2020@fib.unair.ac.id
Indonesian Language and Literature, Faculty of Cultural Sciences, Airlangga University
Airlangga Street 4 - 6, Airlangga, Gubeng, Surabaya, East Java 60115
ABSTRACT
At this time human life continues to progress. If examined in depth, this progress has covered
all fields, including technology. Technology itself is not only developing in terms of
communication but also in terms of finance. Advances in technology in terms of finance are
marked by the existence of a digital wallet or e-wallet that can be accessed via gadgets. Since
its emergence, digital wallets have begun to be widely used by the public, especially
millennials. This is because millennials tend to be highly productive, so they carry out many
financial transactions. Writing this article aims to find out what are the ins and outs of digital
wallets so that they attract millennials to use them. The data and results of this article were
obtained from reading journals and sources accessed online. The conclusion that can be drawn
from the data acquisition is that the digital wallet application consists of various types and is
rich in interesting features that facilitate all financial transaction processes so that this is a
factor causing the large number of digital wallet usage numbers in the community, especially
millennials.
Keywords: digital wallet, transactions, millennials.
INTRODUCTION
The emergence of digital wallets in the community is a sign of current technological
advances. Technological advancements here focus on finance which is an important aspect of
everyday life. The development of technology in the financial sector or commonly called
financial technology is an innovation in the financial sector that focuses on modern technology
(Rakhmat Dwi P; 2019, 1). According to Bank Indonesia, financial technology is the use of
technology in the financial system that produces new products, services, technology, and/or
business models, and can have an impact on monetary stability, financial system stability,
and/or efficiency, smoothness, security, and reliability of the system. payment (Permana,
2021). According to The Economic Times, a digital wallet is a type of prepaid account that isprotected with a password where users can save money for any online transactions, such as
payments for food, online shopping for goods, and flight tickets.
Reported from Warta Ekonomi.co.id at first, digital wallets have been around for a long
time but only became known to the Indonesian people in 2007 after Telkomsel released T-
Cash, then Dompetku was followed by Indosat a year later, and XL Tunai from XL Axiata in
2012 for payment methods. digitally. Digital wallets themselves have become increasingly
popular and have been widely used for the past 5 years, especially when two digital payment
startups, namely OVO and GoPay, offer various tempting promos. So it is inevitable that the
use of digital wallets has skyrocketed by 30%, based on the results of a study from the
independent research institute FT Confidential Research. The increasing use of digital wallets
is suspected because this application has many interesting features to simplify the payment
process.
(Aulia, 2020) said that during the Covid-19 pandemic, digital wallets were increasingly
used as a means of payment because they did not need to be in contact with money (cashless).
This is in accordance with the recommendation for physical distancing from the World Health
Organization (WHO) which has inspired many consumers to carry out activities with minimal
contact, including making payment transactions (Aji, Berakon, & Husin, 2020). Digital wallets
are considered more practical than cash payments because people don't have to go to ATMs to
withdraw money. This certainly has many advantages, people can transact anywhere without
having to leave the house so that it saves energy, saves time, and saves other expenses.
Regarding its users, digital wallets are widely used by millennials. This is because
millennials tend to be consumerist and have high productivity, so they need to do a lot of
transactions. Especially now that everything can be paid for online such as markets,
transportation, tutoring, tax payments, and other needs. Please note, the higher the level of
education, the greater the percentage of digital wallet users. The ability to adapt to new
technologies is supported by the level of education. Individuals with low levels of education
tend to have more difficulty operating technology (Sulistyowati et al., 2020). In this case,
millennials are more active and easy to understand updates because millennials are the time to
study and absorb a lot of knowledge, especially when they are happy with instant things, so
digital wallets are considered very useful.Through some of the explanations above, some problem formulations can be made such
as what are the advantages and disadvantages of digital wallets in their use, what kinds of
digital wallet applications are available in Indonesia, and how to use their features. This article
was written with the aim of providing information about digital wallets so that it is hoped that
the results obtained can be useful for readers.
DISCUSSION
1. Advantages and Disadvantages of Digital Wallets
Everything that is created certainly has advantages and disadvantages, digital wallets are
no exception. Some of the advantages of digital wallets include:
a) Faster payment transactions
The payment process using a digital wallet is only done by writing an account number
or scanning a barcode that has been provided by the seller so that people don't have
to bother taking out their wallets and giving money according to the nominal required.
This makes it even easier that the seller does not need to be difficult to give change
when the money given is more than the purchase price.
b) Avoiding counterfeit money
By using a digital wallet, transactions are much safer because this application is
equipped with a strong security system so that it can minimize fraudulent actions and
of course counterfeit money does not apply here.
c) Recorded transaction history
With the transaction history, it will be easier for users to record and track every
expense and income directly from the device and can be checked at any time.
d) There are attractive promos
Digital wallet applications often offer massive promos such as cashback, additional
points, and discounts that can be enjoyed when transacting.
e) Avoid the presence of viruses and bacteria
During this pandemic, with a digital wallet, it will minimize direct contact with other
people so that it is safer for health.
Some of the disadvantages of digital wallets include:
a) Transaction fees apply
Some digital wallet applications do have an administrative fee for each transaction,
which will increase the amount of money spent.b) Limited shop service
Stores or merchants that use digital wallets as a means of payment are still not evenly
distributed in Indonesia. So sometimes people still have to use cash to make
payments, especially at small shops or online stores that do not provide digital
payments.
c) Making society more consumptive
This is because transacting using a digital wallet is considered easier, so the value of
the reduction will not be felt when compared to transactions using cash so that this
will cause waste.
d) Digital wallet balance cannot be withdrawn
Some digital wallet applications do not accept disbursement of funds. This is so that
the money that has been placed in the digital wallet is used or spent online by its
users.
2. Various Digital Wallet Applications in Indonesia
The popularity of digital wallets in Indonesia can be seen from the various online
payment startups including:
a) GoPay
Reported from Gojek.id, GoPay is electronic money that can be used to make payment
and financial transactions online through the Gojek application, GoPay Business
Partner shops or restaurants, PayLater for selected customers, and other financial
transactions such as transfers of GoPay balances to fellow users and to banks. for users
who have upgraded to GoPay Plus.
b) OVO
Launching Fintech Indonesia, OVO is a payment system service provider application
that provides convenience in non-cash transactions, and opens access to other digital
financial products and services that are presented in collaboration with selected
partners. Currently, OVO is accepted by more than 700,000 merchants, including
more than 550,000 MSMEs spread across 373 cities and regencies throughout
Indonesia.
c) Dana
Report from Dana.id, Dana is an Indonesian digital wallet application designed to
make every non-cash and non-card transaction digitally. Both online and offline can
run quickly, practically and still guaranteed security. Dana can also be optimized tosupport the government's commitment to save the cost of producing and distributing
physical money, as well as increasing financial literacy and inclusion of the
Indonesian people.
d) LinkAja
Reported from LinkAja.id, LinkAja is an application-based national electronic money
that is the pride of Indonesia which is the mainstay product of PT Fintek Karya
Nusantara (Finarya) which has been registered with Bank Indonesia, and was formed
from the spirit of national synergy of 10 State-Owned Enterprises (BUMN) and a
private technology company.
e) iSaku
Reported from Bukuwarung.com, iSaku is one of the electronic money that has
received permission from Bank Indonesia. Not much different from other e-wallets,
iSaku makes it easy for various transactions to be done anywhere and anytime, so
there is no need to go to the bank to make transfers or anything else. Even if you want
to shop at merchants such as Indomaret or others, you can easily do it with iSaku.
f) ShoppeePay
Reported from Kompas.com, ShoppeePay is an electronic money service feature that
can be used as a choice of online transaction payment methods, offline transaction
payments at shops or shoppee merchants to receive cashback in the shoppee
application. Just like digital wallets in general, before making online transactions,
ShoppePay must first be filled with money either through M-Banking or through
Alfamart and Indomart.
3. How to Use Digital Wallet Features
In fact, digital wallets are considered to have a myriad of benefits for the payment
process, both buying and selling and billing needs. To be able to have a digital wallet,
people only need to download the application through the playstore, then register by
filling in the requested data, reading the terms and agreeing to it then being able to use it
directly. There are several features available in the digital wallet application including:
1) Features scan QR code, account number, and phone number.
Payments using the QR code scan feature are done by bringing the phone screen
closer to the seller's barcode and the digital wallet will process the payment
automatically. For the account number and phone number feature, users only need
to type in the number and ensure the correctness of the account that appears and isaddressed, then type the nominal amount of money sent, type the pin, then the payment process will occur automatically. 2) Pay bills on time. This feature contains several payment options such as electricity bills, PDAM, internet and cable TV, credit installments, education, building tax, credit, transportation tickets, etc. For the payment procedure, users only need to select these options and then make a payment transaction. In addition, users can also set billing reminders so that they will avoid delays in paying. 3) Standby feature As the name implies, standby has the meaning of being ready which is meant as a backup or guard. In digital wallets, the standby feature is in the form of insurance and BPJS health. People can make payments practically and efficiently so that when they experience an emergency digital wallets are the most reliable. For insurance, there are several package options, namely Bronze (1, 3, and 12 months) and Silver (3, 6 and 12 months). Premiums for life insurance start from Rp. 8,000 per month while inpatient hospital insurance starts from Rp. 9,900 per month. In addition to insurance and BPJS, during this pandemic, digital wallets also provide PeduliLindung services that can be used to scan and check in when people visit public places. This is a practicality, people don't have to bother downloading many applications, they just need to use a digital wallet. 4) Purchase paid games and apps In addition to being able to transact to meet needs, digital wallets also facilitate gamers and users of paid applications to make purchase transactions. Gamers can buy game items such as Mobile Legends, Bang Bang, Free Fire, PUBG and other games. In addition, digital wallets can also be used to buy tickets to watch movies online so that it is easier for people to enjoy their favorite films. 5) Gold investment The next digital wallet feature is gold investment. As we know, the pandemic atmosphere has contributed to the uncertainty in the capital and financial markets. As a result, investment assets such as stocks and mutual funds have a high risk of collapsing. For information, in most digital wallet applications, this gold investment feature is for premium account holders. To have this premium account, users only need to send a photo of their ID card and a photo of themselves (selfie) then follow the next registration steps and you're done. Users can directly buy gold
starting from 0.01 grams or less than IDR 10,000 without additional fees. The presence of this feature is an ongoing effort by digital wallet applications to educate the public about investment and accelerate financial inclusion. 6) Send money free of admin fees Admin fees for money transfers between banks are often a burden, for millennials who are active in sending money. Sending money using a digital wallet can now be a good option because sending money to other banks now doesn't require admin fees. However, keep in mind also that not all digital wallet apps enforce this free feature. According to some experiences, the digital wallet that provides free features is the Dana application. 7) Bank card save feature With this feature, users can save debit or credit cards from any bank. No need to worry about security because some digital wallet applications have been equipped with a high security system. With a bank card in the digital wallet application, it is very helpful to speed up balance top ups, payment transactions can directly use a debit or credit card so that it is more practical to use. 8) Business features The business features in the digital wallet application are designed to help small and micro business owners gain more customers through digital payments. This feature also provides an educational platform for business owners so that they can improve the quality of their business. Business owners can also access learning materials provided in the form of educational videos, and other content such as business management education, business strategies, as well as tips and tricks for business success. 9) Donate This feature provides donations in the form of wallets for the poor, which are useful for channeling donations from the public to those in need, including the poor, orphans, and victims of natural disasters. In addition, it is also available for paying zakat and waqf, so it is not surprising that this digital wallet is very useful for human life.
CONCLUSION
At this time technological advances have covered all fields including the financial
sector. This is marked by the emergence of digital wallet or e-wallet applications in people's
lives. As time goes by, the emergence of this digital wallet application is increasingly diverse,
including GoPay, OVO, DANA, LinkAja, iSaku, ShoopeePay, etc. This digital wallet
application also has many advantages and attractive features to facilitate the online transaction
activities of its users. The available features include a reminder feature for payment due dates,
gold investment, standby features, donations, business, etc.
The majority of users of this digital wallet application are millennials because
millennials tend to be consumerist and have high productivity, so they need to do a lot of
transactions. In addition, millennials are also more active and easy to understand updates and
are happy to explore renewable things.
Rizky Ayu Khoirun Nisa'
Airlangga UniversityBIBLIOGRAPHY
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Wallets. ISOQUANT: Journal of Economics, Management and Accounting, 4(1), 17.
https://doi.org/10.24269/iso.v4i1.323
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