Digital Wallet: Definition, Benefits, and Examples

Digital Wallet: Definition, Benefits, and Examples

According to Bank Indonesia’s official website, a digital wallet or electronic wallet is an electronic service for storing data on payment instruments using cards or electronic money that can accommodate funds to make various types of payments.

Simply put, a digital wallet is an online or digital-based payment facility in the form of an application on a smartphone that allows users to make non-cash transactions. The many conveniences provided by this wallet make it increasingly in demand by anyone. The wallet also provides users with a more effective and secure way to store and use information when shopping online.

The Difference with Digital Money

The general public is originally more familiar with the existence of digital money (e-money) as a non-cash payment method. Although e-wallets in Indonesia have only become popular in the last 10 years, these wallets are still part of e-money, regardless of the differences. If so, what differentiates this wallet technology from e-money?

1. Shape

Digital money is used through chips implanted in cards or other media. Meanwhile, e-wallets use electronic money stored on a server. So, in using this wallet, you must first connect to the server that owns the wallet system.

2. Extent of Use

The next difference lies in the extent of its use. Electronic money generally comes in the form of cards and can be used in everyday transactions. Its use is to pay for toll roads and public transportation tickets, purchases at retail outlets, and payments for tickets to tourist attractions. Meanwhile, e-wallets are used for shopping online and offline, paying electricity tokens, BPJS bills, cable TV bills, and similar bills.

3. Maximum Amount of Balance

The maximum amount of balance that can be accommodated by both is also different. On e-money, you can only fill in a maximum balance of IDR 1 million. As for e-wallets, the maximum balance you can top up is IDR 10 million. However, topping up balances for both can be done at EDC machines, ATMs, internet banking, mobile banking, and retail outlets.

4. Security Features

Both also have differences in terms of security features. Digital money does not have security features so that it can be used easily by other people. Meanwhile, for e-wallets, there is a security feature in the form of profile activation with the user’s mobile number and PIN code to prevent data theft.

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Advantages and Disadvantages

Digital wallet, Digital Wallet: Definition, Benefits, and Examples, Advance Innovations

There are several advantages and disadvantages that you need to consider when using a digital wallet for daily transactions:

1 Advantage

Digital wallet technology tends to be safer for use by the public because the payment process is relatively fast. Users also don’t need to bother preparing denominations of money as a change because the money is automatically deducted from the balance. Transactions are also easier to do by simply clicking on your smartphone screen.

In addition, many promos offered by digital wallet technology are usually given as discounts and cashback for each transaction. These promos can help users to save more. Every transaction made with a digital wallet can be tracked using history. As a result, you can easily monitor how much you spend on various transactions.

2 Disadvantages

Despite the admirable advantages, there are drawbacks that you must understand from using a digital wallet. Because it is server-based, the use of this wallet in Indonesia still depends on smartphone battery power. As a result, the wallet can only be used when the smartphone is on. Another drawback is the transaction limit. There are balance limitations of up to IDR 10 million by various providers, which do not allow users to make transactions exceeding this amount.

Apart from that, you can only make limited transactions at outlets that have been invited to cooperate with the relevant digital wallet company. So if the outlet where you want to make the transaction doesn’t work with the e-wallet you have, you have to choose another payment method. You also cannot withdraw the balance in the e-wallet, because the balance can only be used for cashless transactions.

Read also: Various Examples of Digitalization In Business


Below are ten examples of the most popular e-wallets used by Indonesians:

1. OVO

One of the most popular types of e-wallets in Indonesia is OVO. This digital wallet has controlled more than 70 percent of transactions and shopping centers in Indonesia. Initially, OVO was under the Lippo Group before working with Grab. OVO also has a variety of interesting features ranging from online shopping, transportation, delivery orders, bank transfers, and other features.

2. GoPay

GoPay is a service under GoJek. This e-wallet has received permission from Bank Indonesia, so its security is well guaranteed. GoPay can be used to pay for transportation transactions, order food, pay bills, top-up phone credit, invest, and pay for delivery services. This wallet also has various promo offers, discounts, and cashback for users who use it frequently.

3. Dana

Dana is an e-wallet made in Indonesia with registry permission from Bank Indonesia as an official Digital Financial Institution. Dana is also connected to data from the Population and Civil Registry, so the approval period for this e-wallet is faster than for other e-wallets. Interestingly, Dana is also connected to ATM Bersama and BPJS which can be used for transactions by scanning a QR code for transferring money and other transaction needs.

4. ShopeePay

The Shopee marketplace also launched an e-wallet that we know as ShopeePay. The growth of this e-wallet is quite rapid compared to other e-wallets because ShopeePay is directly connected to Shopee as a marketplace. Interestingly, ShopeePay can not only be used to pay bills or shop at Shopee but can also be used to pay for Shopee Food and other needs.

5. LinkAja

LinkAja is a digital banking product in collaboration with several large companies in Indonesia. These big companies are the Association of State-Owned Banks, Pertamina, and Telkomsel. The strong synergy in the LinkAja e-wallet can support features that make digital transactions easy for its users.

Read also: Dokumen Digital: Pengertian, Keuntungan, dan Contohnya

6. Jenius

Jenius is a digital banking and e-wallet service from BTPN bank and has been registered with the Financial Services Authority. This e-wallet has a security certificate from LPS or the Deposit Insurance Corporation as proof of the security of the system. Every user can use Jenius to create a PayPal account and pay for various transactions using QRIS as well as various other interesting features.


DOKU is an electronic payment application owned by PT Nusa Satu Inti Artha which is well-known in Indonesia. Just like other e-wallets, DOKU has payment services for various purposes. Interestingly, this e-wallet secures the data and privacy of its users by implementing multiple security systems so users can enjoy extra security from DOKU.

8. Sakuku

BCA Bank also issued their e-wallet product under the name Sakuku. This e-wallet makes it easier for users to make digital transactions and other transactions. Sakuku is divided into two types, such as Sakuku and Sakuku Plus. The difference lies in the amount of balance that can be stored in the Sakuku application, which only reaches a maximum balance of IDR 2 million. Sakuku Plus allows users to be able to save a balance of up to IDR 10 million. Sakuku Plus is also equipped with additional features such as cash withdrawals and split bills.

9. OCTO Go Mobile

As a digital wallet product from CIMB Niaga Bank, OCTO Go Mobile has also succeeded in gaining popularity in Indonesia. Slightly different from other e-wallet products, OCTO Go Mobile is here to help its customers with online payment transactions such as m-banking. OCTO Go Mobile comes with a wide variety of features and sophisticated fingerprint and face lock security systems for doing electronic payment applications.

10. i.Saku

Now, the Indomaret franchise also has its digital wallet with the name i.Saku. This e-wallet is an electronic payment service that makes transactions easier for Indomaret customers. The superior feature of i.Saku is its integration with Indomaret Poinku, and various payment services in the form of paying for tickets, pulses, vouchers, and others.

Business owners need to understand the different types of e-wallets as technological developments have changed the way transactions and payments are made. As a result, e-wallets are becoming more and more used by everyone now.

Business owners must be familiar with the use of various types of e-wallets to keep up with emerging payment trends and meet consumer needs. Making good use of e-wallets allows business owners to improve their customer experience, operational efficiency, transaction security, and overall business growth by reaching out to millennials. However, if your business has problems with the right way or method to reach millennials, you can rely on the EKYC service from AdIns. Connected with more than 10 well-known online services such as ride sharing, e-commerce, travel apps, digital wallet, and banks, the EKYC (Know Your Customer) System – Profind service from AdIns allows you to understand the market in-depth and helps you to compete with competitors. other. Contact us via WhatsApp and start using this service to boost your business more than ever before!

Digital wallet, Digital Wallet: Definition, Benefits, and Examples, Advance Innovations

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Published date :

15 June 2023