Last updated on July 9th, 2025 at 11:17 am
According to Bank Indonesia Regulation No. 18/40/PBI/2016, e-wallets are part of the electronic payment system, which is monitored and licensed by financial authorities. So, not only is it practical, but its use is also safe and guaranteed.
How Does an E-Wallet Work?
List of contents
If you're still confused about how e-wallets work, here's a step-by-step guide:
- Download the e-wallet app from the App Store or Google Play Store.
- Register an account using personal data such as your phone number, email, and identity.
- Top up your balance using a bank transfer, debit card, or retail outlets.
- Use the e-wallet for various transactions like online shopping, bill payments, or sending money.
- All transactions are automatically recorded and can be checked via the transaction history in the app.
Benefits of E-Wallet
The use of e-wallets or digital wallets has now become an essential part of modern life, being practical and efficient. E-wallets not only facilitate transactions but also provide several benefits for both individual users and businesses. Here's an explanation:
For Individuals
- Faster and More Convenient Transactions With an e-wallet, users no longer need to carry cash or physical cards. Just use your smartphone, and transactions such as shopping in stores, paying for transportation, or buying mobile credits can be done in seconds.
- Enhanced Security E-wallets come equipped with advanced security systems like PINs, passwords, and OTPs (One-Time Passwords), making them safer than carrying cash, which is prone to loss or theft.
- Attractive Promotions Many e-wallet providers frequently offer promotions, cashback, and reward points for every transaction. These can help save on daily expenses, especially when shopping online or dining at partner restaurants.
- Better Financial Management Every transaction through an e-wallet is automatically recorded in the app. This feature is especially helpful for those who want to live more frugally and manage their finances more systematically.
Read Also: 12 Most Used Malaysian E-Wallet List
For Businesses:
- Improved Transaction Efficiency By accepting payments through e-wallets, the transaction process at the cashier becomes faster and more efficient. This reduces queues and increases customer satisfaction, especially during busy hours.
- Expanded Payment Methods Providing various payment options, including e-wallets, makes businesses more flexible and customer-friendly. Many consumers now prefer cashless transactions, so businesses that accept e-wallets have a competitive advantage.
- Reduced Risk of Counterfeit Money Since payments are made digitally, the risk of receiving counterfeit money is eliminated. This gives business owners peace of mind.
- Supports Digital Marketing Strategies E-wallets often collaborate with merchants to run promotional programs, such as special discounts or cashback during transactions. This can be an effective promotional tool to reach more customers and enhance loyalty.
Advantages and Disadvantages of E-Wallet
As technology advances, e-wallets are becoming increasingly popular. However, it is important to understand their advantages and disadvantages before using them:
| Advantages of E-Wallets | Disadvantages of E-Wallets |
|---|---|
| Transactions are faster and more efficient. | Not all merchants or places accept payments via e-wallets. |
| Reduces the risk of carrying cash that can be lost or stolen. | Sometimes administrative fees are charged for balance transfers or withdrawals to bank accounts. |
| Offers many promotions, discounts, and cashback from various merchants. | The risk of overspending due to transactions being very easy and quick to complete. |
| Can be used for various needs: transportation, shopping, bill payments, etc. | Limited access if there's no internet connection or if the server experiences issues. |
Read Also: 11 Best E Wallet List in the Philippines
Popular E-Wallet Apps in Indonesia
Here’s a list of popular e-wallets that are widely used in Indonesia:
1. OVO
OVO is one of the most popular e-wallets in Indonesia, used for transactions at various merchants, online shopping, and transportation payments. OVO also offers OVO Points as rewards.
2. DANA
DANA is a multifunctional e-wallet for bill payments, mobile top-ups, online shopping, and peer-to-peer transfers. DANA also frequently offers attractive promos and cashback.
3. GoPay
GoPay is an e-wallet service from Gojek, making payments for services like GoRide, GoFood, and payments at partner merchants easier. Users can also transfer balances to other GoPay users.
4. ShopeePay
ShopeePay is an e-wallet owned by Shopee, which can be used for online shopping, payments at offline merchants, and getting special cashback for Shopee users.
5. LinkAja
LinkAja is a digital wallet owned by Indonesia's state-owned enterprises (BUMN). LinkAja supports various payments such as electricity, BPJS, taxes, and transportation ticket purchases.
6. Jenius Pay
Jenius Pay is a service from the Jenius digital banking app (BTPN). With the $Cashtag feature, users can make payments or receive funds easily.
7. iSaku
iSaku is an e-wallet from the Indomaret Group. Besides being used for shopping at Indomaret, iSaku also supports bill payments, mobile top-ups, and game vouchers.
Read Also: Recommendations for Widely Used Money Transfer Applications
Conclusion
E-wallets like OVO, DANA, GoPay, ShopeePay, LinkAja, Jenius Pay, and iSaku have now become an integral part of the digital lifestyle of Indonesians. With digital wallets, all types of transactions become more practical, fast, and secure. For those who frequently make digital transactions, choosing an e-wallet that suits your needs is certainly a wise step.
If you also need to send money abroad, there's another equally practical digital solution: Easylink! Easylink makes it easy to send money to over 170 countries safely and quickly, whether for personal or business needs.
