The Use of Contactless Payment in Indonesia

Cash, Card or Mobile Phone ?

Right now, retailers need to get to grips with the down of contactless payment. In the past week there has been a raft of announcements and news on alternative payment methods. Technologies everywhere are still convinced that they can come up with something better than cash for smaller transactions.

The alternative method that retailers must consider in the immediate future is contactless payment. A few stories in London have gone live with the Barclaycard Business. Contactless payment system already more than 1.000 other sites have signed up to use it and 3.000 consumers have registered their interest in the system’s One Pulse contactless card.

I am standing on the pro side. Here I am trying to answer questions that given to me:

1. Could we use it/ apply it in Indonesia?

Sure we could. The existence of e-money in Indonesia can be something new that brings a big change for this country. It will bring a huge progress of the nation. The problem is, not all people in Indonesia live in the big city, there are also in suburbs, which makes it a little bit harder to reach. But we have to remember that, everything takes time, everything needs a process. To make something big and huge, ain’t going to be easy.

2. What are the advantages or benefits that we got as a consumer?

First, it’s safer. Reduced from loss and theft. No need to worry whenever you’re going to bring millions or even billions, you don’t have to bring a big bag and hold it so tight.

Second, it’s more accurate. Remember when you do groceries shopping and you have to pay for Rp.155.450 and end up paying Rp. 155.500 because either you or the market have Rp. 50? This e-money can prevent you from that kind of thing, for sure.

Third, time savings. You don’t have to queue in bank to transfer your money if you use e-money.

Fourth, user-friendly. Usually every service is designed to reach the widest possible audience, so it has the intuitively understandable user interface. In addition, there is always the opportunity to submit a question to a support team, which often works 24/7. Anyway you can always get an answer using the forums on the subject. 

Fifth, Convenience. All the transfers can be performed at any time, anywhere.

Sixth, record of transactions. Each and every transaction made with electronic money is recorded in the bank's and the user's online records.

3. which one would you prefer: card, cash or mobile phone?

I prefer mobile phone. Simply because I bring my mobile phone anywhere so it will make me easier to use it.

Sample Letter of Intent to Purchase

Ryan Francom
CFO
Siding and More Inc
123 Anywhere Street
Somewhereville, Best State 88889

1/1/2010

Bill Stevenson
President
Rain Gutters R Us
123 Anywhere Street
Somewhereville, Best State 88889

Dear Mr. Stevenson, 

We hereby submit a letter of intent to purchase your business Rain Gutters R Us, its inventory and other assets. We envisage that the principal terms of the proposed transactions would be substantially as follows.

We would acquire Rain Gutters R Us including its facilities located at 123 Anywhere Street, its logo, brand, brand equity and customer lists. Furthermore, we would acquire all office and field equipment and inventory. As part of the deal, we would assume the current outstanding debt of $50,000.

As consideration for this, we would provide compensation of $400,000 as follows:

1.     $50,000 deposit on execution of a purchase agreement

2.     $100,000 after 15 day transfer period

3.     Balance in equal payments paid monthly the first 6 months after closing

As part of this letter of intent, we would require that you cease shopping for other buyers for a period no less than 60 days to provide us time to complete due diligence and finalize the agreement. We would also require that you not disclose our intent to purchase until after the purchase agreement has been completed and we can issue a joint press release.

This letter is not an official purchase agreement. All of the terms and conditions of the proposed transaction would be stated in the Purchase Agreement, to be negotiated, agreed and executed by both parties. 

If we are selected as a prospective buyer, we anticipate that from the selection date to the closing will take no more than 45 days.

Sincerely,

Ryan Francom