Payment systems continue to evolve from time to time, followed by the evolution of payment instruments. Payment instruments that used to be cash-based have evolved into paper-based and card-based ones.

In fact, when the Covid-19 pandemic struck, the use of virtual payment instruments from electronic fund transfers to virtual accounts was increasing. MarkPlus Insight reports that the increase was due to consumer shopping activities shifting to online shopping.

This is also in line with Bank Indonesia reports which predict that Indonesia's e-commerce transactions will reach Rp 403 trillion in 2021, growing 51.6% from the previous year. It aligns with digital banking transactions in 2021 that is also projected to grow 46.1% (yoy) to Rp 40 thousand trillion. It is expected to continue to increase in 2022.

Thus, dramatic changes in payment systems and instruments require all players, including MSMEs (Micro, Small and Medium Enterprises) to evolve and be more flexible in providing payment options.

Benefits of Non-Cash Payment Instruments for MSMEsPebisnis UMKM memanfaatkan kartu debit untuk bertransaksi

Using non-cash payment instruments provides various benefits for MSMEs, such as:

1. First-rate customer experience

Enhancing customer satisfaction is the ultimate goal of providing non-cash payment instruments. They will be pleased as they go through an amazing transaction process. 

This is one of the keys to a business's success regardless of its size. As an MSME, you want customers to have a pleasant experience so that they come back to do business with you.

2. Faster transaction

Using non-cash payment tools such as debit cards, e-wallets, and e-money can reduce your customers' transaction time.  

It certainly provides convenience for MSME business customers. From the operation perspective, service fees can be cut as well and your employees can work more efficiently.

3. Easier transaction recording

By using non-cash payment instruments, all transaction recordings also become digital. They will be recorded automatically in the system, which includes transaction date and time, type of product or service, the amount of capital issued, and the amount of customer payment.

Complete transaction records also make it easier for MSME to create financial reports and organize overall business' cash flow.

4. Accurate customer data

As mentioned in the previous point, all transactions by non-cash payment instruments are recorded automatically in the system.

It provides information about products or services customers are most interested in. So, the information can be used to predict the amount of stock adjusted to the demand data.

To get all the benefits above, you can provide fast and convenient payment options by adding cashless payment instruments, providing flexibility for your customers. 

Types of Non-Cash Payment Instruments for MSMEs

Pelanggan Bank BRI menggunakan kartu debit untuk bertransaksi

MSME owners can benefit from various types of non-cash payment instruments, ranging from paper-based, card-based, to electronic-based. The following are the non-cash payment instruments.

1. Virtual Account

A virtual account is a non-cash payment instrument in the form of a virtual account with an open payment system (does not have a definite billing amount). For every transaction, each customer will receive an ID number consisting of a unique combination of numbers or letters. It will change according to different types of transactions. 

Bank BRI provides access to virtual account payments through BRI Virtual Account, also known as BRIVA. It simplifies and accelerates financial activities. Besides, you don't need to confirm payments manually since BRIVA verifies every transaction automatically.

2. E-banking (Electronic Banking)

There are two types of e-banking: internet banking and mobile banking. Those two can be used anywhere as long as the user is connected to the internet.

Through e-banking, MSMEs can track transaction history through account mutations. It enables you to see details of every transaction you have made.
By using Account Statement API from BRIAPI, you can access all banking activities without ever leaving your business dashboard.

3. Debit Card

Debit cards are a very popular means of non-cash payments. Various business sectors, including MSME business, have used this payment system.

Bank BRI also supports debit card convenience with BRI Direct Debit API. Your customers only need to register once in the first transaction. Then, for the next transactions, they simply enter the OTP (One Time Password) code they receive.

4. E-money (Electronic Money) 

Maybe some of us think that e-money cards are only for paying tolls, commuter lines, and other transportation. But, they can actually be used for in-store payments, with the help of an EDC machine.

There are many e-money cards in Indonesia, one of which is BRIZZI from Bank BRI. With it, you can receive payments from your customers without cash.

The use of non-cash payment instruments will thrive in Indonesia. Through open API services from BRIAPI, Bank BRI fully supports MSME business to apply non-cash payment instruments within its system. Start now and get all the benefits of BRIAPI.