Global Business and Management Research: An International Journal

Vol. 11, No. 1 (2019, Special Issue)

Comparative Analysis of Payment Method between

Digital Money and Non-Digital Money toward the
Process of Customer Purchase Decision: Survey on
Tokopedia Customers in Bandung, Indonesia
Bunga Indah Bayunitri *
Widyatama University, Bandung, Indonesia
Email: bunga.indah@widyatama.ac.id

Fitriani Fajar
Widyatama University

Abstract
At 2016, research data from eMarketer statistics estimates that almost 8.6 million people who
shop in the e-commerce industry using internet. That estimates increased from the previous
year which reached 7.9 million people. With the development of e-commerce industry, has a
impact is emergence of new payment method using digital money or electronic money to ease
the transaction in the e-commerce industry.
Based on statistics from Bank Indonesia, over a period of 3 years (2015-2017) that the amount
of digital money reached 1,777,643,998 instruments with an average increase is 11%.
However, when compared with the total population of Indonesia which reached 250 million,
the penetration of digital money still low eventhough has been introduced since 2009. Digital
money can not yet replace from traditional money such cash and using credit or debit cards. In
fact, industry parties cooperate with the government continue to socialize the program of digital
money. This is possibly caused from business problems models that have not been optimal,
lack of standardized of digital money, and about education, socialization, and technical
development costs of digital money are relatively expensive.
Types of research are kuantitative and descriptive analysis also measuring a comparison
analysis by using a regression analysis and for hypothesis testing using t-test. The result of this
research is digital money payment method is more influential than non-digital money payment
method toward the process of customer purchase decision.

Keywords: Digital Money, Bandung, Indonesia, Non-digital Money, Payment Methode,

Process of Customer Purchase Decision

Introduction
In the e-commerce industry, Indonesia already has a asset that is a very large market volume.
With a population of 250 million (the largest in ASEAN), Indonesia can be a very promising
e-commerce market. In order to encourage online transactions, the government has issued a
special economic policy package to facilitate and protect e-commerce business domestically
(Barhansyah in Kompasiana, 2017).
At 2016, that almost 8.6 million people who shop in the e-commerce industry using internet.
That estimates increased from the previous year which reached 7.9 million people. With the
growing number of people who know the Internet called the Z generation (Gen Z) born in the
digital age make the habit of shopping goods and services switch by online that previously

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conventionally. E-consumer in Indonesia is the most promising in the world. Half of the 250
million population are young people under the age of 30 (Barhansyah in Kompasiana, 2017).
With the development of e-commerce industry, has a impact is emergence of new payment
method using digital money or electronic money to ease the transaction in the e-commerce
industry. Digital money or electronic money (e-money) is money that used to conduct
transactions on the internet by electronic means by using computer networks such as internet
and digital price storage systems. The digital money has a stored-value or prepaid value which
is the amount of money is stored in an electronic media that will be reduced in every payment
process.
In connection with the issuance of Bank Indonesia Regulation (PBI) no. 11/12 / PBI / 2009
dated April 13, 2009 concerning Electronic Money, that started April 13, 2009 the regulation
of Electronic Money separately from Card-Based Payment Instruments arrangements. That
regulation (PBI) consists of permissing of procedures and transfers, administrating procedures,
monitoring, improving technological of security and sanctions (Bank Indonesia 2018). The
potential development of digital money in Indonesia is enormous. Based on statistics from
Bank Indonesia, for 3 years (2015-2017) the amount of digital money reached 1,777,643,998
instruments with an average increase of 11%.
Although viewed from the data above that the digital money instrument from year to year had
been increased, but compared with the Indonesian population (over 250 million), digital money
penetration are still low digital money penetration is still low despite being introduced since
2009. Digital money can not yet replace traditional method such cash and using credit or debit
card. In fact, industry parties cooperate with the government continue to socialize the program
of digital money. This is possibly caused from:
1. The business problems models that have not been optimal. There is no profitable model
for all digital money industry parties in Indonesia.
2. Lack of standardized of digital money. This has led to the difficulty of interoperability
among digital money publishers in Indonesia.
3. The problem of education, socialization, and technical development costs of digital
money are relatively expensive. In this case, regulatory support (goverment) is required in
establishing a pricing incentives scheme for digital money than non-digital money (Al
Hafiz in Marketeer, 2016).

Literature Review
Payment is a fund transfer activity to fulfill an obligation arising from an economic activity.
These payments occur daily, involving thousands of diverse economic transactions, such as
buying and selling of goods and services, purchasing and repayment of credit, involving
billions of rupiahs with various means of payment such as cash payments with currency,
checks, bilyet giro, money orders, other. (Sanjaya Ade, 2015).
Definition of payment system according to Undang-undang no. 23 of 1999 concerning Bank
Indonesia article 1 point 6: "A system that includes a set of rules, institutions and mechanisms
used to implement the transfer of funds to meet an obligation arising from an economic
activity".
According to (Mustafid & Gunawan, 2008) that the method of payment is a customer's
decision-making through which method or method of payment to be selected from various
other alternatives that match the conditions available to purchase a product. In measuring the
effectiveness of payment methods can be seen from:
1. Level of ease in using payment method,
2. The diversity of payment methods, and
3. Level of sophistication in payment methods

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The difference between digital money and non-digital money is money used in Internet
transactions with electronically. Usually, these transactions involve the computer networks
(such as internet and digital pricing systems). Electronic money has a stored-value or prepaid
value in which a certain amount of money is stored in an electronic media owned by a person.
The value of money in e-money will be reduced when customers use it for payments such as
E-cash, E-checks, and E-wallets. (Barhansyah in Kompasiana, 2017).
Meanwhile, the non-digital money is a traditional payment method that is still high and widely
used by Indonesian people specially in Indonesia because of the habit for decades. In this
research, several types categorized as non-digital money are as follows:
1. Payment instruments using cash such as coins and paper;
2. Payment instrument using demand deposit such as check or bilyet giro;
3. Payment instruments using cards such as the use of debit cards (ATMs) and credit cards.

Five steps of the process of customer purchase decision by Kotler and Keller (2012) are as
follows:
1. Identified the needs
The identified of needs arises when the customer faces a problem that is a difference
between the expectation and the actual situation. The need is triggered by the stimulus so
that can be recognized. A marketer needs to identify the circumstances that trigger a
particular need and then gather information from the customers to identify the stimuli which
most often arouse the interest of a product.
2. Searching information
When customers need goods or services to fullfil the needs, the customer will find more
about the existence of products or services which are desired. The more information
received will add more value and more customer satissfaction. When customers get more
information then awareness of the customer's knowledge and the fiture of brands will
change.
3. Evaluate alternatives
Evaluate alternative is a process of recognizing product and brand based on customer
criteria. Evaluation criteria are a set of attributes or characteristics of products and services
used to evaluate and assess alternative options. Customers will look for certain benefits then
evaluate product attributes. More information about company's goods and services will help
eliminate other brands competitors. Marketing mix is very influential here, customers will
choose goods or services that provide the highest satisfaction for himself.
4. Purchase decision
Customers will process information about brand to make a purchase decision. At this step,
customers buy alternative goods or services that are considered to satisfy their needs and
provide the highest satisfaction. Among the two factors between purchase intentions and
purchasing decisions toward the attitudes of customers, the extent to which other people's
attitudes reduce the preferred alternatives will depend on two things: first, the intensity of
others' negative attitudes toward alternatives favored by the customer; second, customer
motivation to obey the wishes of others.
5. Post-purchase behaviour
The customer decision process does not end when the product is purchased, but continues
until the post-purchase period. The customer's decision is a function of how closely the
buyer's expectations of a performance of product than the reality. After using the goods or
services, the customer compares the performance level of a product with the expectation of
the product and determines between the satisfaction or dissatisfaction with the product.
Satisfaction occurs when customer expectations can be satisfied or even exceed by the
performance of product and dissatisfaction occurs when product performance is below

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expectations. When the customer is satisfied then they will make repeat purchase also will
tell the experience of satisfaction to friends or other and vice versa if customers feel let
down then they will leave the product.

Method
This type of research uses descriptive quantitative method according from Sugiyono (2013:13)
that quantitative method is a research methods based on the philosophy of positivism, used to
examine the population or a particular sample, sempel picking techniques are generally done
randomly, data collection using research instruments, quantitative data analysis with the aim
to test the predefined hypothesis.
While the meaning of descriptive analysis method according to Sugiyono (2013: 206) is a
statistic used to analyze data by describing the data that has been collected as it is without
intending to make conclusions that apply to the public or generalization.
The population in this research are the customers who made the respondents with the
limitations or frames as follows:
1. Tokopedia Customers,
2. Have experience in transactions using both digital and non digital money
3. Domiciled in the Bandung.

For the sample size used the theory according to Hair et al (2010) are: "The ratio between the
number of subjects and the number of independent variables in the multivariate analysis is
recommended about 15 to 20 subjects per independent variable."
The sample size used in this research based on the above theory by choosing the ratio between
the number of subjects and the number of independent variables in multivariate analysis is 15,
then the sample size is obtained as:
n = Ratio (based on multivariate analysis of Hair et al theories) x number of variables or
sub independent variables
n = 15 x 6 = 90

From the calculation above, the sample size used in this study obtained a sample size (n) of at
least 90 respondents.
Sampling technique using purposive sampling because not all samples have the criteria in
accordance with the authors specify. According Sugiyono (2014) definition of purposive
sampling is a technique of determining the sample with certain considerations.
Sugiyono (2014) explains that simple regression analysis is based on the functional or causal
relationship of one independent variable with one dependent variable. While to test and know
the influence of independent variable to dependent variable (Ghozali, 2013) by using t
distribution that is compare between t arithmetic with t table with significant level equal to
5%. Hypothesis testing criteria Ho accepted if t arithmetic <t table on α = 5%, Ho is rejected
if t arithmetic> t table at α = 5%.

Discussion and Conclusion

The results and discussion of this research are calculated based on the results of descriptive
analysis, regression, and hypothesis test using t test, are the following details:
1. Digital money payment methods are measured using these indicators: Convenience,
Diversity, and Sophistication. The results show that the average score of 305 is included
in the criteria is "Very High". This indicates based on customer’s assessment that digital
payment methods are now more effectively used especially for transacting in e-
commerce industries such as Tokopedia. Customers are facilitated with the sophistication
and diversity of payment methods using digital money such as e-money, e-wallet and e-

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check. Although initially to be able to apply the digital money is not easy, because it
must go through a gradual process in the installation through the vendor, but it did not
discourage customers to transact using digital money.
2. Non-digital money payment methods are measured using these indicators: Convenience,
Diversity, and Sophistication. The calculation results show that the average score of 287
is included in the criteria is "High". This indicates based on customer’s assessment that
non-digital money payment methods are still widely used (cash, COD, and credit and
debit card usage) because of the habits of people who have used them for decades and do
not need a gradual process in applying these payment methods. In addition, there is no
need for special skills in applying it because it does not need advanced technology in
making transactions.
3. Customer purchasing decision making process measured using these indicators:
Identified the needs, Seacrhing information, Evaluate of the alternative, Purchase
decision, and Post-purchase behavior. The results show that the average score of 280 is
included in criteria "High". This indicates based on customer’s assessment that how
important each process in the customer's decision to buy a product. The highest score is
in post-purchase behavior, which means very influential customer satisfaction in making
a repeat purchase of a product.
4. The results of comparative analysis between digital and non-digital money payment
methods to the customer purchasing decision process were measured using simple
regression. For digital money payment method has an effect of 62%, compared with non-
digital money method has an effect of 18% toward customer's decision making process.
This indicates that many customers are now turning to digital money payment methods
following the development of sophisticated technology. According to Barhansyah (2017)
based on research data from eMarketer statistics in 2016 also estimated to reach 8.6
million people who shop through the internet. So it is not a strange thing if there is a
change of culture of Indonesian people in terms of making payments start using digital
money. And the method of payment is also influential someone in the process of making
a purchase decision of a product. Especially especially for customers who often transact
or make payments on product purchases in the e-commerce industry or online business
such as Tokopedia.

References
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Sanjaya, Ade. (2015). Pengertian Alat Pembayaran Definisi Menurut Para Ahli dan Sistem
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