Debit online is one of the favorite online payment methods used by Indonesian. A survey by the Katadata Insight Center and Kredivo in 2021 revealed these results. According to the study, 11 percent of the 3,560 respondents favor debit online as their preferred online payment method. Meanwhile, the rest chose digital wallets (65%), virtual accounts (51%), payments through convenience stores (39%), card-free installments or pay later (27%), and credit cards (6%).


What is a Debit Online?

Debit online is a banking service innovation that can facilitate customers in completing transactions using debit cards at online merchants or e-commerce equipped with OTP or 3DS (3D Secure) security. The funds used for transactions can come from customer savings accounts or debit online card balances, which are already top-up.

According to a Kompas article, this facility was introduced in the first place by Bank Mandiri in Indonesia in 2013.  It was the first visa debit card certified by Visa (VbV – 3DS) in Indonesia used for online shopping at online stores that have been Verified by Visa. The certification functions to ensure transaction security and protect users from cyber fraud.


Benefits and Disadvantages of Debit Online

The presence of debit online can be an alternative online payment method for customers who do not like to be ‘indebted’ to the bank because the source of funds used is the customer’s funds. In addition, customers can also experience several other benefits from this debit online service. Here’s a brief explanation:


Benefits of debit online:

  • Online shopping easily: Customers who have a debit online facility can shop online easily on various platforms that already support the 3DS security system, both at home and abroad.
  • Practical: Customers can complete online shopping transactions without switching from an e-commerce application to a mobile banking application.
  • No interest or fines: Unlike a credit card, debit online can be used for shopping without worrying about interest and fines because the funds source is from the savings account of the customer who owns the debit card.
  • Big amount of transactions: Debit online users can transact in bigger amounts than the credit card limit so long as the nominal transaction does not exceed the balance in their savings account.
  • Debt-free: Debit online customers are not listed as parties who have debt like credit card customers because the funds used are funds in the customer’s savings account.

In addition to paying attention to the benefits, customers also need to consider the disadvantages of debit online to choose and use the payment method that best suits their needs. Here’s a brief explanation.


Disadvantages of debit online

  • No monthly installments: In general, debit online does not facilitate installment payment, so customers must pay their online shopping bill in full with funds from their savings account.

The Choice Is in the Hands of the Customer

Indonesian people currently have many choices of digital payment methods. Each of these payment methods has its advantages and disadvantages.

For example, customers can use a digital wallet to shop online without having a bank account. However, most of these services are limited to domestic use only.

Payment methods through minimarkets or retail outlets are also a promising option in Indonesia. However, this method is also limited to use domestically, needs to count the cash, and customers need to go to the nearest minimarket only to make simple transactions.

Therefore, the presence of debit online can actually be a middle ground for the people of Indonesia. This service can facilitate Indonesian people to make online shopping transactions conveniently, and they don’t have to worry about bills at the end of the month like when using a credit card.

However, take note that every individual needs and level of financial literacy are different. Thus, the favorite payment method between one individual and another is not similar because each individual chooses after considering various financial aspects of his own.