People Needs Incentives Switch to E-Money
By : Herry Barus And Aldo Bella Putra | Thursday, September 21 2017 - 19:00 IWST
Ilustrasi e-money. (Foto: Istimewa)
INDUSTRY.co.id - Jakarta- People needs more incentives from Bank Indonesia and the banking industry to switch to non-cash payments using electronic money, rather than policies that impose additional costs, an economist said.
Bhima Yudhistira Economist Institute for Development of Economics & Finance (INDEF) in Jakarta, Wednesday (20/09/2017), cited in Hongkong, the company or the bank of electronic money issuers and transport service operators bear all the investment costs of electronic money infrastructure through the scheme of "sharing cost ".
The scheme of "sharing cost" with the transport operator is actually reducing the burden of the card issuing bank costs, so the bank can provide a price discount to the consumer.
"Even with the 'sharing cost' the consumer can get a rebate. This incentive makes 95 percent of Hong Kong residents use electronic money Octopus card," said Bhima via telephone.
Therefore, Bhima said, it is not appropriate if the community will still be charged the contents of electronic money balances, both on off-us routing transactions (outside the issuer's bank infrastructure) and on-us routing.
The reason, he said, when buying electronic money, people have to spend. The cost of purchasing the initial electronic money also includes the margin enjoyed by the bank as revenue.