Cashless Society It's an economic phenomenon in Indonesia that has become more prevalent since the COVID-19 pandemic, as people were encouraged to reduce direct interactions during the pandemic a few years ago so payments were made in a more cashless manner.Cashless) more widespread

However, like any other technology, this cashless payment technology also has its own pros and cons. Here are the pros and cons of this lifestyle. Cashless Society

Understanding the cashless society

Cashless Society It is a situation where people tend to use non-cash payments via digital services rather than paying with cash. These digital services include mobile banking applications. Digital wallet application And the latest is QRIS.

Historically, the cashless society in Indonesia began in 2014 when Bank Indonesia, as the financial authority in this country, launched the National Cashless Movement (GNNT). Since then, various financial technologies related to digital payments have begun to emerge, starting from e-toll, mobile banking. Virtual Account And Curis

Advantages of a cashless society

1. Payments are faster and more practical.

Now to pay for your daily groceries, you don’t need to carry a lot of cash. Just scan the barcode given by the cashier, enter the payment amount, and the payment problem is solved.

You will also avoid the problems associated with paying with cash, such as damaged or missing change, because with digital payments, you can enter the specified payment to the minimum value.

2. Avoid criminal acts related to carrying money.

The second advantage is that by using digital payment methods, you no longer have to worry about theft, pickpocketing, robbery or other criminal activities associated with carrying large amounts of cash at once.

In addition, you will also avoid the criminal practice of using counterfeit money, because even though it is digital and does not contain real money, the money in your mobile banking application is legal.

3. Support the digital economic ecosystem

There is no denying that many digital services nowadays require cashless payments, starting from buying daily necessities in online markets, ordering motorcycle taxis online, and even applying for memberships. Streaming services For example, Netflix and Spotify also use digital payments.

Not only in terms of costs, salaries and fees for freelance work are now distributed digitally. This means that companies only need to transfer employees’ salaries, and their employees can check the salary submission online.

4. Easy to control expenses

Applications used in Cashless Society There are usually automatic recording systems so that you as a user can easily view your monthly expense records. Not only that, some of these financial applications can also be integrated into the system. Financial Record Application In particular, you can view income and expense records, online and offline, all at once.

5. Offer many promotions and discounts.

To attract users, many digital financial applications offer promotions and discounts, such as cashback for new users, discounts on certain events, etc. Unlike cash payments, which often do not have any additional benefits.

6. Increase government income

Cashless Society It can also increase government revenue. With well-recorded revenue data, the government can know which party is taxed and can reduce the risk. Anti-Money Laundering Provisional Unit (TPPU)Criminal Offences (TIPIKOR) and Halting the Flow of Funds for Terrorism

With the financial information well-recorded by banks, the government can more quickly determine if there are irregular flows of funds to individuals. It is no wonder that these types of criminals often keep their money in cash instead of in banks.

Disadvantages of a cashless society

1. Promotes waste generation

With an easier payment method, just scan and click, you can't refuse. Cashless Society Can be pushed Impulsive buying And it makes users spend more. In addition, many services are now available in digital form.

2. Risk of cyber attacks

Cybercrime poses several risks that can target the public. Cashless SocietyStarting from CombingSpoofing, phishing and many more. As we know, this crime is not only aimed at individuals, but also at large institutions such as banks or companies.

Therefore, in addition to the increasing use of digital currencies in Indonesia, campaigns on the dangers of cybercrime, how to avoid them, and legal tools for prevention should also be promoted. The aim is to enable Indonesians to conduct digital transactions safely and without worrying that their personal and financial information will be stolen.

3. There is a management fee that users must pay.

There’s no denying that one of the downsides of a cashless society is the transaction fees that have to be paid for each transaction. Starting from interbank transfer fees with a minimum fee of IDR 2,500 to mutual fund purchase transactions that currently cost up to IDR 3,100 per transaction, QRIS merchants are also exempt from this handling fee.

If you look at the value per transaction, it may not be that much, but if you collect multiple transactions at once, the value is definitely quite large. Simply put, when you buy 10 mutual funds using bank transfer payment, the total management fee you have to pay is IDR 31,000. In fact, the same value can buy more than 2 kilograms of offline rice.

4. The legal framework for non-cash transactions is not strong.

This is especially relevant when it comes to cybercrime. The government has actually passed the Personal Data Protection Act (UU PDP), but there is no denying that the implementation of this law still needs to be questioned and evaluated. After all, theft of personal and financial information is one of the cybercrimes that you should be aware of these days.

Implementing a cashless society in Indonesia also faces other challenges, such as the lack of internet access in the country, which means that only certain areas can enjoy cashless payments. In addition, a large number of Gen X and millennials are not yet responsive and digitally literate enough to use this digital payment technology safely.

In fact, non-cash payment mechanisms have both advantages and disadvantages that need to be addressed wisely. Be careful when making digital payments so that digital payments become a profitable technology and not a threat to you.

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