An Evaluation of E-Money’s Growth, Barriers, and Challenges to Build Green Finance on Post-Covid Era

¹ Faculty of Islamic Economics and Business IAIN Salatiga, Indonesia
² Faculty of Islamic Economics and Business IAIN Salatiga, Indonesia
³ Kuliyyah of Economic and Management Science, International Islamic University Malaysia
⁴ Faculty of Islamic Economics and Business IAIN Surakarta, Indonesia
⁵ Faculty of Islamic Economics and Business IAIN Salatiga, Indonesia

^* Corresponding author: imanda.putri@iainsalatiga.ac.id

Abstract

Since paper money is one of the Covid-19 transmission media, a touchless alternative is needed. Electronic money (e-money) is the best alternative. This study analyzes the growth, barriers, and challenges of e-money as a new means of payment in Indonesia by raising an empirical study on the millennial generation. Data was collected through interviews with the managers of e-money issuer companies and 18 millennial e-money customers. Using qualitative methods, this research concludes that the strategy for developing e-money is to create innovations that can make it safer for users to meet their daily needs in the post-covid era. Increased promos and cashback at merchants who have collaborated with products issued is also the most favourite development strategy for customers. E-money customers face obstacles faced by e-money customers include safety issues, limited merchants, unstable provider networks, and socio-cultural factors (the habit of using conventional cash payment methods). The challenge that e-money issuers face is competitors of similar products. Millennial Indonesia is an emerging market for e-money, and this study is the first qualitative study to bring together the topics of e-money, millennials, and green finance.