Understanding E-Wallet: Advantages and Disadvantages

Understanding E-Wallet: Advantages and Disadvantages

Faculty of Computer and Engineering – E-Wallet is one of the technological developments that has significantly impacted the present era. E-Wallet is an electronic service that functions to store information and payment instruments, including payment tools using cards and electronic money, holding funds, and making payments. E-Wallets can be in the form of application programs, apps, or even services created to store digital money and conduct online transactions between users.

Here are some types of E-Wallet applications widely spread in Indonesia:


As we all know, Gopay is one of the E-Wallets available within the Gojek application that can process payments for services within the Gojek app itself.


OVO has successfully ranked second as one of the most widely used E-Wallets by Indonesians.


DANA is an E-Wallet application resulting from a collaboration between Ant Financial and Emtek Group. Users of the DANA E-Wallet can also use it for transactions in the Bukalapak marketplace application.


LinkAja is an E-Wallet originating from a merger of BUMN services such as T-Cash, Unikqu, Mandiri e-cash, T-Bank, and T-Money.

From the function of E-Wallet itself, it has already shown its advantages, but we will explain them in detail. Here are the various advantages of E-Wallets:

Free from Counterfeit Money

The main advantage of e-wallets is reducing the risk of counterfeit money circulation. This issue is still common because many Indonesians have difficulty distinguishing between real and fake money. The presence of e-wallets can reduce this risk.

Faster Transactions

Using e-wallets will make transactions faster. This is different from cash transactions, which require exchanging money first. Additionally, transactions must be conducted in the same place.

E-wallets eliminate all these processes. To make a transaction, you only need to, for instance, scan a barcode or transfer to a virtual account without being in the same location.

Even though E-Wallets have significant advantages, it does not mean they are without disadvantages. Here are some drawbacks of E-Wallets:

Transaction Fees

The first drawback is that some e-wallets still apply administrative fees per transaction. Although the fees are not substantial, they can still be a consideration for users.

Digital Balance Cannot Always Be Withdrawn

Some e-wallet platforms do not provide a service for withdrawing the digital wallet balance. The purpose is to encourage users to spend the money stored in the digital wallet. These platforms do not intend their services to be used merely as a savings account.

Limited Merchants and Markets

The drawback of using e-wallets in Indonesia is that not many merchants can accept digital transactions. This is due to the lack of supporting infrastructure, such as widespread internet access across Indonesia.


  • https://www.freepik.com/free-vector/digital-wallet-abstract-concept-illustration_12291265.htm#fromView=search&page=1&position=0&uuid=149fd4d8-aca3-4f9c-91f9-7cbac0a6e1c0


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