Smart Card in e-Payment

Albert Rewin Genesis/ 2301951884

In this modern era, all  human  activities  are very  dependent  on  technology. With  the high  level of dependence  that leads to  technological  advances  increasingly    in  various  fields,one of    which is in the field  of  payment. Today  the  majority of the world’s  people use  e-Payment  as  their payment  method.  E-Payment  is a  payment  mechanism  that  uses electronic  media   that  does not  involve conventional money.  Transactions    using  e-Payment are  often referred to  as cash less transactions.  Currently   cash less transactions  that are  often  encountered  by the people of  Indonesia  is by using  a Smart Card.  Conventional smart cards  are  about  two  decades  old  and are spread  beyond  Europe    and Asia. Smart cards  can be  used  to  purchase  goods  and  services. Smart cards  were invented  in    1972 by Ronald Moreno in  France. Now  smart cars are  designed  to  provide  and  record  information  regarding  users  and  accounts  of  users.

The use of Smart Card  as an e-Payment payment method can be seen in various applications, including in the field of education. Smart cards are used by universities to connect students with campuses with student personalization such as grades, fees, libraries, etc. By using a smart card in which there is also RFID can be used as a method of absence. In transportation and transit, using smart cards can create security and convenience in buying tickets and other payment methods used on public transportation. Companies  can  take advantage of the use of Smart Cards  for their database  purposes.  In  the  smart card there is  information  about  the customer, date, and  as a result  that  the company can  use  for  their  ownbenefit.   Examples  are  what  products  are  often  purchased  by  a  customer, customers  often  come  on  what day, and others. By  looking at these data,  companies  can  determine what  strategies  they   will  use  in the future  for the purposes  or  development of the  company.

So, in  looking at the information  contained    in the smart card, it can be  seen  that there is  a  strong  reason to be able  to  use  this  technology to be able  to  provide  new  solutions  on payment methods.   . Smart cards  offer  a  variety of profitable  benefits  from  various  parties such as  convenience  for  smar card users,  profit  for  card issuers,  merchants, and others.  Using    smart cards  can  slightly  overcome  problems  in  financial  transactions such as admin fees,   fraud,  speeding up  customer transactions,   security,and also  convenience. For  that  managers  or  companies need   tomart    their  markets and  products  to  find the best  strategy  in  using smart cards  or  electronic cards.  Managers need to ask themselves a lot of questions. Does our current payment handling system provide the level of service our customers expect? Is the electronic card payment industry heading in the direction that best suits our business? Otherwise, should we engage in standardization efforts to ensure our interests are taken care of? Is it beneficial to implement our own electronic payment system before multifunctional cards are widely accepted? If we develop our own electronic payment handling system, do we comply with development standards? The answer to these questions can help the company in the development of smart card strategies.

Reference:

Using Smart Cards in Electronic Commerce – by D Mcelroy  and E  Truban

The Potential of Public Transport Smard  Card Data – by  M.Bagchi  and P.R White