Application of Payment Link

Apriyani Dwiyanti 2301903506

1. 1. ATM, Automated Teller Machine, or Mandiri Cash Bridge, is the most popular e-Banking channel we are familiar with. In addition to transacting through ATM machines, ATM cards can also be used to shop at shopping places, serving as debit cards. If we know ATMs as machines to make money, later it appears that ATMs can accept money deposits, also known as Cash Deposit Machines / CDM.
   2. Phone Banking is a channel that allows customers to make transactions with banks via phone. This facility is arguably more practical than ATMs for non-cash transactions because simply using the phone / HP wherever we are, we can make various transactions, including transfers to other banks.
   3. Internet Banking, includes the latest e-Banking channel that allows customers to make transactions via the internet using a computer / PC or PDA. The advantage of this channel is the convenience of transacting with a full menu display and information displayed on the computer / PC screen or PDA.
   4. SMS/m-Banking, this channel is basically a further evolution of Phone Banking, which allows customers to transact via HP with SMS commands. Transaction features that can be done are account balance information, transfer between accounts, payment (a.l. credit card, electricity, and telephone), and voucher purchases. This channel is actually practical but in practice rather troublesome because customers have to memorize transaction codes in SMS typing, except in banks that cooperate with mobile operators, providing access to banking menu – Sim Tool Kit (STK) on their sim card.

    

   The importance of industry interconnectedness, both past and present innovations, for the development and spread of innovation – ATM/Cash card, Credit Card, EFTPOS/Debit Card, and Smart Card. Diffusion of payment innovation in a competitive environment requires collaboration between financial services industry players. Rothwell’s 5th generation innovation model was witnessed as a way to widely accept innovation. There is an argument in the business strategy literature that suggests that collaborative strategies offer the opportunity to exploit industry relationships to the fullest.

   I predict that banks will not need a much physical presence in the future as technology advances and as people become more accustomed to using technology. For now, “stone to click” banks will have an edge over other banks when it comes to offering customers what they want.

Reference:

Alder, E. (2002), “Smart Card Technology – Hong Kong, Legal Issues in Smart Card Technology” Computer Law & Security Report, Vol. 18, No. 2, pp. 120-123.

Argy, P. and Bollen, R. (1999), “Australia: raising the e-commerce comfort level” IT Professional, Vol. 1, No. 6, pp. 56–57.

Barney, J. (1986), “Firm Resources and Sustained Competitive Advantage” Journal of Management, Vol. 17, No. 1, pp. 99-120.

Barras, R. (1986), “Towards a theory of innovation in services” Research Policy, Vol. 15, pp. 161-173.