Last updated on June 11th, 2025 at 02:59 pm
You are probably familiar with digital wallets, also known as e-wallets. With the rapid advancement of technology, the use of digital wallets has become increasingly popular, as they make the payment process easier and faster.
As the interest in digital users grows, numerous types of digital wallets are now available. Let's explore more about e-wallets and what they offer!
What is an E-Wallet?
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An e-wallet, or digital wallet, is an electronic service used to store payment information such as cards or electronic money. Additionally, this service can also serve as a place to store funds and facilitate payment transactions. This is in accordance with the guidelines outlined in Bank Indonesia Regulation No. 18/40/PBI/2016 concerning Payment Transaction Processing.
How Does an E-Wallet Work?
The way a digital wallet works is relatively simple, which is one of the reasons why it has become increasingly popular. To use it, the first step is to download the app and create an account. Typically, the account creation process for each app is easy to follow.
Once the account is created, the next step is to top up or load funds through the available options. Once the balance is loaded, the digital wallet can be used for both online and offline transactions. For online transactions, users can ask customers to select the e-wallet as the payment method. For offline transactions, users can provide a QR code that customers can scan to make the payment.
Benefits of E-Wallet
E-wallets or digital wallets have become a popular payment solution and offer a variety of benefits for both businesses and individuals. Here are the advantages for both business owners and individual users:
For Businesses:
There are benefits to e-wallets for business people, here are the benefits of e-wallets for business people who use e-wallets in their payment methods:
Easy Payments
Receiving payments quickly and easily via e-wallets helps businesses expand their reach and provides customers with more flexible payment options.
Efficient Transactions
Using e-wallets can reduce administrative costs and cash transaction fees, minimizing the risk of losing money and the time spent counting cash.
Marketing and Promotions
Some e-wallets have offers and promotions features that businesses can use to attract new customers or retain existing customers through cashback, discount, or reward programs.
Transaction Analytics
E-wallets often come with transaction reporting features that allow businesses to analyze customer spending patterns, purchase preferences, and shopping trends, which helps in making more strategic decisions.
For Individuals:
The following are the benefits that can be obtained by individuals who use e-wallets as a payment method:
Convenience and Payment Assurance
Using e-wallets simplifies daily transactions such as paying bills, shopping online, or purchasing tickets. It also ensures that payments are accurately recorded.
Transaction Security
E-wallets are equipped with security layers such as two-factor authentication, transaction monitoring, and other security features that protect users' financial information.
Rewards and Cashback
Some e-wallets offer rewards points or cashback each time a transaction is made. This provides added value to users in their everyday usage.
Better Financial Management
With expense tracking and transaction report features, e-wallets help individuals monitor their finances better, understand spending habits, and manage their budget more efficiently.
E-wallets offer ease, speed, and security for both businesses and individuals in everyday financial transactions and facilitate better financial management.
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Advantages of E-Wallets
The use of digital wallets provides significant benefits and convenience in making transactions. Here are some of the main advantages of e-wallets:
More Efficient and Faster Transactions
Unlike other cashless transactions, digital wallets enable quicker and automated transactions. For instance, you can complete transactions both in-app or offline by simply scanning a QR code. The e-wallet system can also detect errors in data or amount inputs to ensure transaction accuracy.
Reduced Risk of Counterfeit Money
Digital wallets help minimize the risk of counterfeit money, a common problem with conventional transactions. The ability to handle digital money ensures that transactions proceed without concerns about authenticity.
Guaranteed Transaction Security
E-wallet services use encryption technology that enhances the security of user data against cybercrime threats.
Detailed Transaction Record
All transactions made via e-wallets are well-recorded with detailed information, including time, amount, payment purpose, and other relevant data. This allows users to track transaction reports clearly.
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Integration with Various Institutions
E-wallets are not only used for shopping but also support payments to various institutions such as utility companies like PDAM and PLN with easy integration.
Disadvantages of E-Wallets
While digital wallets offer numerous benefits, such as convenience and time efficiency, there are also drawbacks that should be considered before use:
Limited Merchant Availability
E-wallet services are still developing, which means the number of merchants accepting digital payments is still limited.
Administrative Fees
Each transaction made via digital wallets typically incurs service fees, which vary depending on the type of transaction and the policies of each e-wallet provider.
Risk of Overspending
The convenience and speed of transactions, along with promotions offered by e-wallets, may encourage users to spend more than necessary. Therefore, users need to be careful and consider every transaction decision when using digital wallets.
How to Use an E-Wallet
The use of digital wallets can vary depending on the platform and service provider. However, here are the general steps you can follow to use an e-wallet:
Download the E-Wallet App
Download the desired e-wallet app from the official app store (Google Play Store for Android or App Store for iOS).
Register and Create an Account
Open the e-wallet app and follow the steps to create an account. Usually, you will need to provide personal information such as your name, email address, phone number, and sometimes identification documents.
Add Funds to Your Digital Wallet
Select the "Add Funds" or "Top Up" option and choose the payment method you prefer, such as bank transfer, debit/credit card, or other available methods in the app.
Choose the Type of Transaction
After the balance is loaded, you can select the type of transaction you want to make, such as paying bills (electricity, water, telephone, internet, etc.), shopping online at stores that accept e-wallet payments, transferring money to other users of the same e-wallet, or making purchases in physical stores that accept e-wallet payments.
Confirm the Transaction
When making a transaction, ensure that the amount is correct and confirm the transaction before completing it.
Security and Verification
Make sure to activate the security features provided by the e-wallet app, such as PINs, two-factor authentication, or other security features offered to protect your account.
Track and Manage Transactions
Use the transaction report features typically available in the app to track your spending, monitor transaction history, and manage your finances better.
7 Popular E-Wallets in Indonesia
You can easily make transactions using e-wallets, and even some pre-employment applications also leverage these apps. If you're still confused about which e-wallet to choose as your daily payment method, consider the following recommended apps:
1. OVO
OVO is a popular e-wallet developed by Lippo Group and SoftBank. Over time, OVO has collaborated with other brands like Grab and Tokopedia. As one of the widely used digital wallets in Indonesia, OVO offers various features to facilitate payment transactions, fund transfers, mobile top-ups, and other services.
2. Dana
DANA entered the Indonesian market in 2018 as a new competitor. Based on iPrice Group's research, DANA climbed the rankings in Q2 2019, surpassing LinkAja.
Known for its popularity in Indonesia, DANA offers features like bill payments, online shopping, money transfers, mobile top-ups, and data package purchases.
3. GoPay
GoPay is one of the most well-known e-wallets in Indonesia, owned by GOTO, a financial technology company. GoPay offers services like online payments, bill payments, mobile top-ups, transportation, and transactions at conventional stores. Additionally, GoPay allows users to transfer money to other GoPay users.
4. ShopeePay
ShopeePay is an e-wallet produced by Shopee, one of the largest e-commerce companies in Southeast Asia. ShopeePay provides various features and ease in digital transactions, including bill payments, online shopping, and money transfers between ShopeePay users.
5. ISaku
ISaku is one of the e-wallets available in Indonesia, offering simple and efficient payment and digital transaction options. ISaku provides features like bill payments, game voucher purchases, mobile top-ups, and money transfers.
6. Jenius Pay
Jenius Pay is an e-wallet app accessible through the Jenius app. Jenius is a digital banking service offered by Bank Tabungan Pensiunan Nasional (BTPN). Besides QR code-based transactions, Jenius Pay also offers payment via $Cashtag, which is a unique username for individual users.
7. LinkAja
LinkAja is a payment service operating using a server-based system, a key product from PT Fintek Karya Nusantara (Finarya), which is officially registered with Bank Indonesia. Since February 21, 2019, Finarya has obtained a license from Bank Indonesia as an Electronic Money Issuer and Digital Financial Services Provider.
E-wallets have become a go-to solution for simplifying digital transactions, both online and offline.
The growing interest in digital payments in Indonesia proves that the public values convenience, speed, and security in their transactions.
