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Advantages and Disadvantages of Electronic Money

By Isny Dewi R

18 Dec 2018

Advantages and disadvantages of using electronic money.

Electronic money or e-money is a payment system which now is getting popular. E-money is a cashless payment system which now is many used in several big cities in Indonesia, including Jakarta. The existence of electronic money has been replacing the function of  cash. You don’t have to pull out your money from your wallet to paying anything, you only have to use one card and all is done. Although behind its advantages, don’t mean there is no disadvantage. Below are advantages and disadvantages of electronic money.

Advantages

1. More Practical
To use electronic money, you have to charge the balance. You can top up at the merchants and now is easier to find the merchant. The balance in your e-money can be used for any  transactions, wherever and whenever. You only have to use one card and you can pay anything you want as long as you never run out of your balance.

2. Faster Transaction
Payments using electronic money are indeed faster than use cash. As example when you want to pay for a train ticket. you can directly tap in on an available machine, then go to the platform, and wait for your train to come. No need to long queue at the counter, pull out money, or waiting for the change.

3. Global Transaction
For those who love online shopping, e-money also can be useful. Because, it can be used as a payment on any e-commerce sites, including overseas. It is because e-money applies globally. In online transaction, e-money has the same function with credit card. You only have to enter your card number, and the payment is done.

Disadvantages

1. Consumptive
Aware or not, e-money who gives us a lot of convenience has make us into a consumptive person. Why? Because the convenience make us want to buy things a lot, until we don’t realize that the balance almost run out.

2. Low Security
E-money can change hands easily. No need to entering password or something, everyone can use it without any permission. When your card is lost, the people who find your card can directly use it. That is the consequences behind its convenience which incriminating. All you have to do as the owner is keep it very well.

3. The Left Balance Can't Turn Into Cash
Although transaction using electronic money card is very easy, not all payments can be made using electronic money. When you want to pay for something cash, or you are top up your balance too much, the balance that has been transferred can't be cashed or turn into cash. Unless your electronic money card is lost or damaged, you can report it to the bank concerned and the remaining balance can be cashed.

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