Summary of E-money and E-wallet.

NAME : BILLY JOHANES COLLIN NUMBER ID :

017201700007
WHAT IS THE DIFFERENCES BETWEEN E-MONEY AND E-WALLET BASICALLY
IN INDONESIA

Basically, e-wallet is also part of electronic money, but there are a number of things that
make it different from e-money. Let's see more clearly:
1. Chip based vs. Server based
Electronic money that first appeared in Indonesia in 2007, appeared in the form of e-
money based chips planted on cards or other media (chip based). Most chip-based
electronic money has so far appeared as a card.
There are approximately 9 chip based electronic money currently on the market, namely
BCA Flazz, Mandiri E-Money, Brizzi BRI, BNI Tap Cash, BTN Blink, Mega Cash, Nobu
E-Money, JakCard Bank DKI and Skye Mobile Money published by Skye Sat Indonesia.
While what is known as e-wallet so far refers to electronic money based on servers.
Server-based electronic money in the usage process needs to be connected first with
the publisher's server. In Indonesia, we know e-wallets such as Telkomsel T-Cash, XL
Cash, CIMB Niaga Mobile Account, BBM Money Permata Bank, DOKU, and so on.
2. Usage range
The echo e-wallet has so far been relatively inferior to the prestige of e-money. This
may be influenced by the range of uses that have a different focus. Card-shaped
electronic money is relatively more widely used for daily transactions. Starting from toll
road transactions, payment of public transportation tickets, purchase transactions at
retail outlets to buying tickets at entertainment venues, and so forth.
Whereas e-wallets like T cash, the range of uses is mostly for online shopping,
shopping at offline retail outlets, purchasing telephone credit. Even so, e-wallet also
provides payment features that are rarely owned by e-money, for example for payment
of routine needs such as electricity tokens, BPJS bills, pay TV bills, and so on.
3. How to top up balance
Fill in the balance of electronic money both for chip or server based, basically the same.
Filling out the balance can be done through an electronic money issuer network starting
from EDC machines, ATMs, internet banking, mobile banking, as well as through retail
merchant outlets. Likewise for server-based electronic money.
The filling can be done through a bank account that is determined by e-money
publishers and at merchants or retail outlets.
4. Maximum of Balance
Another difference between e-money and e-wallet is the maximum balance possible. In
e-money, so far the maximum balance that can be filled is Rp. 1 million. While the e-
wallet can be more than that number, it can even reach Rp. 10 million. As for XL Cash,
the balance can be up to IDR 10 million.
5. Refill fee
Before BI released the e-money refill fee rules on September 21, there were no strict
arrangements regarding top up fees. Generally for refilling on the network owned by the
publisher of e-money, there is no fee. Being outside the publisher network, the fees
vary.
Well, starting October 20, refills are limited to a maximum of Rp. 750 for transactions
above Rp. 200,000 if done at the e-money issuer network. Whereas for refills outside
the publisher network for any value, Rp. 1,500 per transaction is affected.

REGULATION OF BANK INDONESIA ABOUT E-MONEY

Bank Indonesia Regulation , Number 20/6 / PBI / 2018 About Electronic Money

E-MONEY and E-WALLET IN UNITED STATES AND MEXICO

A. Google Wallet
Google has its own well-known mobile/digital wallet. Google Wallet
offers similar mobility, security and utilitarian advantages as Apple Pay does.
The main concern is that it does not make life as easy as Apple Pay. When
making a transaction, it is necessary to insert a PIN Code manually. Even
though it is easy, it means extra work for the user.

B. Softcard
This product was the result of an alliance among several telephone mobile
companies, like AT&T, T-Mobile and Verizon Wireless. This payment

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system only worked with phones from one of these phone companies. The
main concern was that it only worked with certain banks, such as American
Express, Chase and Wells Fargo. To give an example, if American Express
was chosen, user would have been redirected to the American Express homepage
to enter the required security information.

C. Paypal
PayPal is a famous Internet payment system. If the user has an existing
account, it can be linked to the application. As a mobile payment system,
the problem lies in the lack of affiliated establishments. The process is not
so lengthy if the user’s PayPal account is already linked to the user’s bank
account. The security code or PIN that PayPal uses is the password chosen
when the account was created. To make a purchase in a store, the mobile
phone must be linked to the account and have the matching PIN at the checkout.
The PayPal financial procedure consists of first withdrawing the amount
from the PayPal balance and then from the baking account.
D. Starbucks and Subway
Other competitors are trying to replicate the idea of a mobile payment
system, but their designs consist of developing smartphone applications as
rewards programs. These establishments are trying to force customers to
redeem their points only in their stores. The disadvantage at the moment
is not having the freedom to redeem those points elsewhere, due to deficient
affiliations with banks.

E. Samsung Galaxy
The iPhone’s main competitor is Samsung Galaxy. Samsung is developing
a mobile phone that includes a mobile payment system, which will be based
on LoopPay/Samsung Pay. It works by scanning a fingerprint or entering a

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PIN and hovering the phone over the point of sale. Loop Pays/Samsung Pay
uses the tokenization of a credit card as a security system. Unfortunately, at
the moment, this product requires a PIN to authorize purchases.
The rules of economics say that when there is demand, supply will grow.
This is the perfect scenario for mobile payments, especially for the mobile/
digital wallets. It was not until Apple Pay appeared, together with their innovation
and creativity, that a boom in similar apps came from other companies.
It is true that many other companies could do something similar, just as
Google Wallet, PayPal, SoftCard, Starbucks and Subway and Samsung Galaxy
did, but they will never match what Apple has put in the minds of their
consumers. The idea of authorizing a purchase with a fingerprint instead
of a PIN Code makes people feel their phone is an extension of themselves.
This type of implementation is called sensory marketing.
The case of PayPal is different. Since this payment system is dedicated to
online shopping, two issues arise. The first is that people have adopted the
concept of PayPal as an online payment system for shopping on the web,
and not as a payment system with retailers on a daily basis. The second reason
is that since it was built for Internet shopping, the system configuration
to setup an account and perform transactions is lengthier and more complicated.
Adding up all the required steps and the possibility for the system
to red flag irregular sales might be a good idea, but Apple Pay still holds
the lead with its fingerprint authentication, securing its position as a leading
technology company.
SoftCard and other retailers’ phone apps like Starbucks and Subway still
lag behind other competitors.69 The way SoftCard operated made it less attractive
for many users since it took more time and redirected them to the
credit card company´s web page for authorization and authentication. In
the case of retailers, an app exclusively developed for their business does not

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have the same appeal. People are looking for a universal digital payment
method, which helps them make transactions fast, securely and conveniently.
Functioning only as a rewards payment system will not make people see it as
a competitor of Apple Pay or other mobile payment systems.
The Samsung Galaxy is an appealing phone in many ways. It has a great
processor, a long battery life, a good camera, and application possibilities.
One good reason to buy a Galaxy instead of an IPhone would be the cost of
the device. For many people, there is no reason to spend several hundreds
of dollars more for an Iphone, but for others, it is worth it, most probably
for the lifestyle it sells.
Establishing the specifications of each competitor for the purpose of this
research makes it possible to identify the similarities of the products. These
similarities are consistent with security and user identification. Each company
seems to have a favorite user identification method: fingerprinting in Apple
Pay, linking it to a web account like PayPal, redirecting to the bank´s web
page for SoftCard, and finally inserting a PIN for the card like Galaxy. A
fitting solution would be to introduce a uniform user identification system.
Considering these user identification rules in guidelines or amendment issued
by federal authorities would be of great value to unify the mobile/digital
wallet payment system. Biometric factors would be the best choice. Other
countries like Mexico use it and criminologists find it very safe.