The development of technology, especially in the business sector, shows that people’s habits in making payments have changed. From usually paying using cash or cash, it has now changed to using digital transactions, especially in terms of online business transactions.
This is evidenced by the results of research from the French global research company, Ipsos in February 2020, which stated that digital transactions in Indonesia have become an integral part of the daily lives of the millennial generation born in 1980 to 1996; and Gen Z born in 1997 to 2002.
The shift in people’s habits in terms of payment using digital transactions is related to promotion, convenience, security, practicality, innovation, customer service, and ubiquity. This can certainly be an opportunity for businesses from micro, small, medium, to large scale to be able to see the growth of digital transactions as an opportunity to increase sales in online business.
As a business owner, especially those who have an online business, this should be a momentum to develop a business payment system to be more flexible. Where it does not only accept cash payments, but can also accept non-cash payments through digital transactions.
Well, before jumping into the use of digital transactions, of course, business people need to understand in advance about the types, advantages and disadvantages, as well as the benefits for their business. Curious? Let’s see the explanation below!
What is a Digital Transaction?
Before discussing further about digital transactions, business actors need to first understand the definition of digital transactions themselves.
By definition, digital transactions are one of the technological developments that make it easier for people to make payment transactions through the devices used, such as through the internet and facilitated through an application, either available on smartphones or in the form of a website.
As time goes by, many transactions can now be done digitally because of the support and protection from the government and official financial institutions. One of the most popular is through e-wallets that can be done through barcodes, cellphone numbers or with the help of banks.
So from this explanation it can be concluded that digital transactions change the way of payment, from usually using cash to non-cash or cashless payment transactions, from direct payments to transfers, from traditional wallets to digital wallets.
Types of Digital Transactions
After knowing what digital transactions are, what are the types? The types of digital transactions that are quite popular in Indonesia are as follows:
- Electronic Money (E-Money)
Electronic money or e-money is money owned in the banking system for use in digital transaction activities. Generally, e-money is issued by banking institutions in the form of cards and has a chip, so that it can be used in transaction activities. Some examples of e-money are JakCard (Bank DKI), Flazz (Bank BCA), Mandiri e-Money (Bank Mandiri), Mega Cash (Bank Mega), TapCash (Bank BNI), and others.
- Digital Wallet (E-Wallet)
A digital wallet or e-wallet is a digital service that serves to accommodate funds, store transaction data, and make payments, either using cards or digital money. Its function is almost the same as a traditional physical wallet that can store money, but digital wallets use a more sophisticated electronic system. That way, users can make payments
cashless. Some examples of e-wallets in Indonesia are Gopay, Ovo, Dana, LinkAja, Jenius, and others.
- Online Banking
Online banking is also a type of digital transaction that is widely used by sellers and buyers in buying and selling transactions. Reporting from the Financial Services Authority (OJK) page, online banking consists of two types of services, namely internet banking and mobile banking. Internet banking is a facility that can be enjoyed by bank customers to conduct banking transactions via the internet network anytime and anywhere. Meanwhile, mobile banking or m-banking is done through smartphones both in the form of applications and applications built into cellular operators.
- QR Code
QR Code or Quick Response Code is a two-dimensional barcode that can provide various information at once. QR codes, which usually consist of 2089 digits or 4289 characters in the form of punctuation marks and special characters, can be opened via a smartphone by scanning. QR codes are widely used as a digital payment method by collaborating with digital wallet companies. So, users only need to scan barcodes via smartphones to make transactions.
- QRIS
QRIS or Quick Response Code Indonesian Standard is the unification of various QR codes from various Payment System Service Providers (PJSP) using QR codes. QRIS was developed by the payment system industry together with Bank Indonesia so that the transaction process with QR codes becomes easier, faster, and safer. Thus, QRIS can be used to make payments at all stores, parking lots, donations, and others with the QRIS logo.
Benefits of Using Digital Transactions
After knowing the types, what are the benefits of using digital transactions both for users and for businesses?
- More Practical
With digital transactions, online business processes and other buying and selling can be done more efficiently and practically, benefiting both parties. Both sellers and buyers can complete their orders much faster with an e-payment application that can be accessed through a smartphone. In the end, business productivity will increase because they can serve more customers. The amount of profit earned will also be greater with the help of a system that makes it easy.
- Facilitate Transaction Bookkeeping
In conventional transactions that still use cash, it may be more troublesome for sellers because they have to make bookkeeping one by one. But with digital transactions, this method can be transferred because of the help of the system automatically and in real-time. As a business owner, you can also book every transaction more quickly and accurately because all the evidence is arranged completely and neatly in the digital system. The process of making a business financial report
becomes much easier and less error-prone.
- Safety Guaranteed
Another benefit of using digital transactions, including in online business, is that the security is more guaranteed. In addition to protecting the seller from the risk of loss, this security can also guarantee the customer so that both will benefit equally.
That is a series of benefits that can be felt by both business people including online business people and customers who use digital transactions. However, behind the convenience offered, the digital transaction system also has several disadvantages, including:
- Requires an understanding of technology, where digital transactions may be considered quite difficult, especially for people who are not too familiar with technology.difficult, especially for people who are not very tech-savvy.
- Online payments are still not free, as there are service fees charged to users.
- Dependence on telecommunications infrastructure, because without the internet, digital transactions are not possible.digital transactions would not be possible.
- Vulnerable to cybercrime, such as hackers hacking into systems, stealing personal data and information, etc.hacking into systems, stealing personal data and information, and so on.
Tips for Safe Digital Transactions
As explained above, digital transactions also have a number of disadvantages, one of which is that they are vulnerable to cybercrime including the theft of personal data and information, which is now also rampant.
For this reason, there are several things that businesses and customers need to consider to maintain security during digital transactions, such as:
- Maintain Data Confidentiality
Never share your pin/password, OTP code, authentication code, and so on when making digital transactions.
- Enable Transaction Notification and Two Factor Authentication
It is important to activate the Two Factor Authentication system and transaction notifications to make transactions safer. Users will get a verification code or OTP code to the number that has been registered. In addition, notifications serve to prevent unknown transactions. Immediately report to the bank if you get a transaction that you did not make.
- Use a Dedicated Email Address
Having a special address for certain purposes will make it easier for you to identify suspicious emails. Distinguish between personal, bank, and work emails, so that it can be easier to identify.Moreover, there are currently many phishing attacks that hack into the personal data of email users. Therefore, if there is a suspicious email, check it first before opening the link.
- Recheck Transaction Purpose
Before making a transaction or transferring money, make sure that you are sure of the intended party to avoid fraud.
- Answer Messages Only to Authorized Parties
Many people fall victim to scams via email, phone or SMS. Therefore, it is important to be more critical in assessing the veracity of the information obtained and the institution or party sending it.
- Change Password and Pin Periodically
The last tip for safe digital transactions is to change your access code regularly. This is important to prevent other parties from knowing your access code, and can increase the confidentiality of your code.
That’s an explanation of what digital transactions are, the types, as well as the benefits for online businesses and users, to how tips for digital transactions can be done safely. Hopefully this information is useful for you as a businessman and user, yes!
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