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Digital financial literacy needed for new payment methods
Gen-Z, born between 1997 and 2012, is characterized by a love of shopping, even though they do not yet have an income.
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Improving literacy: Children read a book together in front of a mural warning the public of the lure of online lending platforms in the Tempurejo area of Surabaya, East Java, on Sept. 7, 2021. (Antara/Didik Suharton)
The COVID-19 pandemic has provided a blessing in disguise for accelerating financial digitalization in Indonesia. The large-scale social restrictions and the implementation of restrictions on community activities significantly reduced direct interaction among economic actors.
Accordingly, “manual” buying and selling activities have since been shifting toward virtual transactions. The face-to-face buying and selling model has been quickly replaced by e-commerce platform facilities. The existence of physical markets is being eroded by electronic markets.
The payment methods for each transaction have also adapted to digital innovation. Cash payments have been greatly reduced by non-cash media. Debit cards, electronic money and Quick Response Indonesian Standard (QRIS) codes are available as options for non-cash payments.
The tsunami of financial digitalization does not stop there. Different payment methods are also continuously evolving. Online loans offer a supply of fresh funds to those in need. Along with credit cards, online financial companies provide financing.
Customers who previously made purchase transactions pay their bills at a later time to the financial company that covers them. The term “buy now, pay later” is very popular across all social levels. Moreover, purchase and payment transactions can be done just by pressing a few buttons on a gadget.
Up to this point, financial digitalization offers a number of conveniences in many activities. Its presence at the right time ensures optimal efficiency of time, energy and costs.
However, the story of financial digitalization is a little different for millennials. The millennial generation was born at the same time as the emergence of information and communication technology, which has meant they are familiar with gadgets, accessing the internet and having social media.
