ArticlesTechnologyFintech Product Advantages : Credit Card vs E-Money

Ratri AdityaraniNovember 11, 2016

Today’s society has many payment options in conducting financial transactions. With the development of digital money, the popularity of credit cards is now almost in parallel with e-money. This could be a consideration for financial institutions to develop their products, which one is more advantageous – credit card or e-money. Let’s look at both comparisons.

Fintech Product Advantages : Credit Card vs E-Money

If you are thinking about expanding your financial company line of business, the product options (credit card or e-money – or even both) could be an interesting point to explore.

Credit card

Credit cards are a popular financial product since the beginning of its use in early 1900. Since then, the payment system using credit card has become a symbol that indicates a person’s financial status. The first finance company that issued the credit card as the form of payment was Western Union, which until now has become one of the largest financial companies in the world.

Currently, the Bank issued a credit card with a solid system and can be received anywhere in the world, which make the medium to the upper-income level of society becomes the largest consumer of this system.

Some of the advantages of a credit card for financial institution:

  1. Using a postpaid system.
    Customers can use a credit card to suit his needs with a predetermined limit. Financial companies that issue credit cards can attract the interest of each transaction, and also from the installment payments made each month.
  2. There is no recording of funds on the card instrument.
    In addition to convenience for consumers, the bank has its own online transaction records at the back end system of the company, and all of the consumer’s transaction history data is owned by the company.
  3. Managed Funds
    Funds entirely within the management of the finance company/bank before any authorization from the customer to make a payment.
  4. Authorization & Secure Process
    At the time of the transaction, a card is used for online access into the issuer’s system to obtain authorization to make payments at the expense of customer accounts. It’s either in the form of a deposit account (the card is used as a debit card) and a loan account (credit card). Therefore, payments using credit cards and debit cards require online communication to the issuer’s software. These systems are in addition to maintaining the security of the card holder, and also provides a layer of security to prevent fraud.

Slightly different from the credit card, e-money has a more simplified system. E-money can be network-based and card-based. Network-based e-money refers to transactions conducted via the Internet. This kind of money can be used to conduct online transactions, online share trading, online bill payment and money transfer to other countries. Meanwhile, card-based e-money is used as a stored value card on the which can be used for transactions. It can be a credit, debit or ATM cards.

Some of the advantages of e-money for financial institution:

  1. Using a prepaid system
    Consumers must first deposit their money into this system so that the velocity of money is bigger than the credit card. Value for money has been recorded in the instruments or e-money stored value.
  2. Consumer-owned nominal value
    Funds recorded in e-money completely in the possession of consumers. The Company does not act as a guarantor but has the data of the consumer’s nominal value.
  3. Quick offline transactions
    At the time of the transaction, the fund transfer in the form of an electronic value of e-money to the merchant terminal can be done offline, in which case the verification is done at the merchant level (point of sale) without having to go online to the computer issuer.

If you’re interested to further explore E-Money implementation within your business, learn more of our E-Money product or contact us here.


With the policies regarding the implementation of electronic money in is now on the go, the current development of the financial institution in developing countries such as Indonesia has full support from the government. Therefore, if you are thinking about expanding your financial company line of business, the product options (credit card or e-money – or even both) could be an interesting point to explore.

To facilitate this digital finance system, WGS has made an app that can help companies to record any payment systems – both from the credit card or e-money. Now that digital technology made finance become more convenience, there should be no hesitation for your company to expand this fintech area. You can contact us for any consultation of discussion regarding these payment systems and the software support.

One comment

  • ปั้มไลค์

    May 24, 2020 at 1:07 pm

    Like!! I blog frequently and I really thank you for your content. The article has truly peaked my interest.

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