Digital credit card-Last year the leading news site Kompas reported that digital credit cards “are currently being loved by national banks.” According to them, this was triggered by social restrictions due to the pandemic. People are shifting from shopping in person – or to shops and shopping centers – to online.
Various leading banks have launched this facility for their customers since last year. Call it Bank Mandiri, Bank Negara Indonesia, Bank MNC International, and Bank DBS Indonesia. Meanwhile, Bank CIMB Niaga just released this service at the end of last June.
Of course we are familiar with ordinary credit cards, maybe even have had them for a long time, but not with digital credit cards. This article will help readers understand more about this new product.
Definition of digital credit card
The most basic question, of course, is: what is a digital credit card? Digital credit cards, or also called virtual credit cards, are actually the same as regular credit cards, only they are available in digital form.
This is another version of the credit card printed with plastic material. So to have it of course one must already have a printed credit card. Some banks require that prospective customers do not have any products in their company. Other banks allow existing customers to have digital credit cards.
To have this digital credit card, customers can register with the bank concerned via the website or application. After that, just like applying for a regular credit card, customer data will be verified. If the conditions are met, then the digital credit card will soon be in hand.
Banks issue digital credit card products in order to increase the number of users. Bank CIMB Niaga, for example, has a target of adding 20 percent of credit card users with their new product.
Digital credit card benefits
Of course, the main benefit of digital credit cards is the same as credit cards in general, namely being able to shop even if you don’t have cash. Because, the money used belongs to the bank, not your own funds like when using a debit card.
In addition, digital credit cards can also help build credibility in the eyes of banks. If you are discipline in paying, of course the customer will be allow to have another credit card or even make a loan – which is very important when, for example, starting a business.
In addition, because it is a new product, digital credit cards are equipp with various extra benefits whose purpose is to attract people to use them.
Various bank sites that provide this facility describe many things that can be obtain by customers. Some of the most common include cashback, 0 percent installments, and free annual fees.
Advantages of Digital Credit Card
Compared to conventional services, digital credit cards certainly have their own advantages. Before starting to use it, first consider some of the advantages of the following digital credit in full.
1. Practically Without Physical Form
When talking about conventional credit cards, of course, many people imagine what their physical form is like. Although recently a number of conventional credit card issuing banks have started to switch to digital.
However, some of them still require the physical presence of the card as well as CVV information. In addition, the risk of the card being damag, tucked away or even lost makes this conventional credit card service not fully practical.
In contrast to digital credit card services, which almost do not require the physical presence of the card. Thus, customers can use credit card services more practically without being overshadow by the risk of damage or even losing the card, which can be minimiz.
2. More Flexible
When they want to shop or transact, conventional credit customers need to bring their physical card. This makes users say they are not fully flexible as digital credit.
Although currently conventional credit card services also support digital wallet top up options. It’s just that, you still need to input data into various different digital wallet platforms.
This, of course, makes users less comfortable to provide user data on many platforms. With credit card services, you don’t need to enter a lot of information into digital wallet applications or marketplaces.
With only one digital credit application, all digital payment services to the marketplace can be connect. Not only that, digital credit services also facilitate various other online transactions. Starting from paying electricity bills, credit installments, BPJS to reloading credit, it becomes more flexible.
3. Suitable for those who like cashless transactions
Today’s modern lifestyle indirectly requires you to adapt quickly so you don’t lose money.
For example, when shopping at a shopping mall, your wallet is left behind, of course you don’t need to panic while carrying your cellphone, as long as your cellphone has a digital credit card feature that you can use for transactions by scanning QR on the EDC machine and Tent Card/Sticker.
So when you choose a credit card, make sure your credit card has easy and sophisticated features so that it can support your lifestyle and all types of transactions.
As with Digital Credit Cards which can still function for transactions even without a physical card, until the financial management/all transactions feature is enough to access from a smartphone.
4. Easy Application Process
It can be said that applying for a conventional credit card is not an easy thing. The reason is, not many banking institutions are willing to take the risk of accepting customers carelessly.
No wonder, if the application for a credit card application often requires the completeness of layered requirements documents. Starting from ID cards, family cards, salary slips to photocopies of savings accounts for the last 3 months.
Not to mention, many banks are still using offline procedures, aka having to meet face to face, and survey the feasibility of prospective customers. Of course, things are different from applying for a digital credit card service.
Where to fill in personal data is enough online, and upload an ID card and selfie photo by holding an ID card. That way, submissions can be made from anywhere without the need to meet face to face so that it is more practical and efficient.
5. Faster Credit Approval
In addition to requiring quite a lot of requirements, approval for a conventional credit card application is consider quite time-consuming. The reason is, the bank needs to check the documents submitted by prospective customers.
Not to mention matters related to BI Checking, where checking the credit history of prospective customers takes longer. Often the application process can be approv can take up to months.
While the approval of applications for digital credit cards is consider much faster, even in just a matter of days. In addition, the document checking process is also more systematic because it uses an AI or Artificial Intelligence-based system. That way, prospective customers don’t have to worry about BI Checking’s credit score when applying for digital credit.
Credit card alternative
In a business context, the latter deficiency can hinder business progress. So there needs to be an alternative, something that is more accessible but also offers various advantages.
One such alternative is Spenmo, a payment software that is specifically for businesses – unlike digital credit cards which are basically for general needs and even tend to be consumptive.
Unlike credit cards that can only be printed once, Spenmo’s physical or virtual corporate cards can be duplicate as many times as need. Each department can have one for different needs. While physical cards are like debit cards that can also be us for cash withdrawals.
This way the corporate card makes it easy for any business to pay.
Corporate cards can also prevent companies from over budgeting. This can happen because there is a limitation feature that prevents funds from coming out if it is more than budgeted.