When advanced countries like the United States, Britain, Japan and South Korea have long used cashless transactions in their daily activities, some developing countries such as Indonesia and Thailand are still promoting this program.
Why are developed countries prefer digital money rather than hard cash? There are several reasons which actually refers to the issue of practicality. This is supposed to be the work of financial firms in developing countries to promote cashless lifestyle in their country. There are a few things to consider to better use the cashless system than conventional money, including:
With the population growth rate is increasing every year, the problem of environmental security has always been an unavoidable social issue. When using the conventional money (hard cash), people would be worried if the money is stolen or lost, therefore with the presence of digital cash, the risk of loss can be suppressed. While security in e-money system was further increased, so that the risk of money fraud can also be minimalized.
When we consider the use of public transport (buses, trains, taxis) is a large area of financial transactions every day. You can imagine how big the transactions that occur on a single bus route that operates throughout the day. That's why financial traffic will be easier if the transport system combined with electronic payment methods. Where people do not have to bother with the cash to pay for transportation services, but with just one tap on the e-money cards in one go. Reflecting on other countries that already use e-money, the developing countries should be able to take the practical side of this system.
With digital transaction, the company can track the traffic history of money, either from the merchant and issuer. Thus the company is able to monitor the use of electronic money for the development of systems and programs that can help increase usage. This also will help the state finance to conduct better, more transparent and controlled financial turnover.
With the presence of the electronic money regulation in developing countries, it should be easier for financial companies to jump in and play in this pond. WGS has helped some of the largest financial companies in Indonesia in the development of e-money products. We will be happy to help you to discuss the best steps in creating financial products that suit your company. Contact us or leave a comment below.