Consumer & Retail Banking
Consumer & Retail Banking

Cashless Society in Indonesia

Cashless Society in Indonesia

With the rapid development of technology, the need for convenience and efficiency in transactions is increasing. One form of progress is the emergence of a cashless society.

What is a Cashless Society? 

A cashless society is a concept where transactions are made digitally without using cash as a payment method. In this system, transactions can be made using debit cards, credit cards, e-wallets, or other devices connected to the internet.

Since August 14, 2014, Bank Indonesia (BI) has launched the Gerakan Nasional Non Tunai (GNTT) to support a cashless society. GNTT aims to create a safe, efficient, and smooth payment system. Thus, GNTT, which seeks to realize a cashless society, is expected to encourage the national financial system to work effectively and efficiently.

To help create a cashless society in Indonesia, Bank Muamalat has also introduced various digital services such as Internet Banking Muamalat and Muamalat DIN application with complete financial features.

Drivers of a Cashless Society 

The development of the cashless society phenomenon is driven by various factors, including:

Increasing Technological Awareness 

Along with technology's rapid development, people are becoming more educated and quickly adapting. Technological progress allows for easier, faster, and safer payment methods. For example, using a credit card, e-wallet, or mobile banking such as Muamalat DIN, you can pay transactions online or offline without carrying cash.

Ease and Speed of Transactions 

Thanks to this technology, people can experience easier ways of transacting. People can do transactions without cash can be done anytime and anywhere. With the availability of non-cash payment options, you no longer need to search for ATMs too often or carry large amounts of cash.

Providing a Sense of Security 

Non-cash transactions are also safer compared to carrying a lot of cash. The risk of losing money or being robbed can be reduced because there is no need to have a large amount of cash. Thus, people can feel more secure.

Behavioral Changes Due to Covid-19 

People's behavior has changed after experiencing the Covid-19 pandemic. Many people are used to not carrying cash to avoid physical contact with others.

According to the Visa Consumer Payment Attitudes study, 63% of Indonesian consumers carry less cash. The same study also states that Covid-19 can accelerate the creation of cashless societies in Indonesia by 2026, four years earlier than the previous estimate of 2030.

Benefits of a Cashless Society 

Some benefits of a cashless society include the following:


Being a part of a cashless society means you no longer have to carry much cash. You can simply bring your debit card, electronic money, and smartphone with mobile banking apps and various other digital wallets.

As a result, all kinds of transactions will become more practical. You no longer have to wait for change or queue at ATMs.

Safer Transactions 

Non-cash transactions also provide better security. Cash can be easily stolen or lost, whereas digital transactions use PINs, OTP codes (One Time Password), encryption, and even fingerprint verification as security features, making your transactions more secure.

Therefore, you no longer need to worry too much when conducting digital or cashless transactions.

Simplify Financial Records 

With digital transactions, information about every transaction can be automatically recorded.

Being a part of a cashless society means you can easily track all types of income and expenses, from transaction amounts and time to the names of merchants where transactions occur.

Many Attractive Promotions 

In addition to the various conveniences, there are many benefits if you conduct cashless transactions. Merchants compete to offer their best promotions!

For example, Bank Muamalat's partner merchants offer many attractive promotions for customers who transact with the Shar-E Muamalat Debit Card, from cashback to discounts that can make your shopping more cost-effective.

Challenges in a Cashless Society 

In addition to the advantages mentioned earlier, a cashless society still faces problems that must be addressed and become challenges that require solutions.

Challenges in realizing a cashless society include not everyone having access to the necessary digital technology to conduct cashless transactions. In addition, despite having sophisticated security measures, digital transactions are not entirely free of risk. There is also the possibility of additional fees for using credit cards or e-wallets.

How is a Cashless Society in Indonesia? 

The government and private sector efforts to promote non-cash transactions in Indonesia have increased in recent years.

Some digital payment services such as GoPay, OVO, DANA, and LinkAja have become popular in Indonesia and are increasingly used by the public. People are also starting to get used to using QRIS (Quick Response Code Indonesian Standard) as a cashless payment option.

Furthermore, the OJK continuously supports the cashless society program, the Gerbang Pembayaran Nasional or GPN program, and other non-cash national movements from Bank Indonesia that provide payment systems with innovative, efficient, secure, and easy-to-use technology for the Indonesian community in various sectors, including the banking sector, retail, transportation, and public sector.

Although there are still many challenges in promoting a cashless society in Indonesia, by continuing to improve technology infrastructure and education and supporting the adoption of digital payment technology across all sectors, Indonesia is likely to move towards a society that uses less cash.

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