Contactless Credit Cost

Annisa Miftahul  Jannah 2401989612

Over time, the changes and growth of technology and innovation developed are increasingly diverse. Technology brings many benefits since it was first discovered, from facilitating daily activities to even the precarious. Cash is still one of the most well-known payment methods in point-of-sale (POS) in various developed countries, especially at low transaction values (von Kalckreuth et al. (2014)). Indonesia is also included in it, most people still often use cash as a means of payment, probably because of the habits made from the beginning and it is easy, just have to return the money if there is a return. However, there is actually something easier than paying with cash. There are various innovations applied as well as various researches conducted by experts in the field of IT, emerging contactless payment innovation or wireless payments. This innovative payment tool seeks to emulate the cash features we commonly use on a daily basis. How to work that tends to be easy and simple, this is believed to be more efficient and comfortable to do especially for daily activities, therefore payment This wireless is worthy of being a payment alternative and may later replace all traditional payments. Just change the patterns and habits of the community later to get used to wireless payments. This wireless payment is connected to a credit or debit card owned which contains a chip to be able to detect its presence. This wireless payment is based on Near Field Communication (NFC) technology. This radio communication technology allows payment within 4cm by waving or tapping the payment card. These wireless payments offer an instant system, speed, and accuracy compared to traditional cards let alone through cash. Then with all the convenience that has been tested in one card what about the cost to produce it? According to an article from Payments Journal, the cost of publishing a single card will decrease in 2020, this is due to the economies of scale that are encouraged by international card issuers. Today, wireless cards cost less than $1 per card, and when compared to the previous year which tends to be more expensive i.e. more than $ 1 per card. 2. In various developed and developing countries, wireless payments are also widely used. However, it is not uncommon for people in Australia and the US to still use traditional cards or even cash as a means of transaction for transactions. certain.

Reference
von  Kalckreuth, U., Schmidt, T., Stix, H. (2014). Using cash to monitor liquidity – Implications for payments, currency demand, and withdrawal behavior. Journal of Money, Credit and Banking, 46(8), 1753–1785.