63 CHAPTER V CONCLUSION AND RECOMMENDATIONS 5.1 Conslusion Regarding external factors that influence T-Cash Tap’s business, the demographic environment shows that out of 250 million people in Indonesia, only 30% own bank account. Most of the Indonesians are non-bank financial-institution users who are living in the rural area and below poverty line. Therefore, it is reasonable that many of the Indonesians are not using non-cash payment instruments which lead to the low level of mobile-money awareness in the country. However, the penetration rate of mobile phone that reached 123,1% in 2014 is a contributive factor to mobile money’s development which is higher than banking service penetration rate. The recent utilization of NFC technology has also helped mobile money to become a more practical and secured way to pay. In global context, Indonesia is currently on the Inception stage in which the country is beginning its journey towards less cash society. Nevertheless, the regulations have not fully supported the development of mobile money since it gives the operators some restrictions and are more favorable to bank players. Meanwhile, the result of industry analysis shows that the attractiveness of e-money industry is relatively low. Even though the threat of new entrants is low and bargaining power of supplier is low to moderate, the rivalry intensity, bargaining power of buyers, and threat of substitute products are moderate to high. Same as its competitors, Telkomsel’s objective is to position the company as a leading company. Telkomsel is currently directing the company towards digital lifestyle and T-Cash was launched to initiate a new trend that leads to this lifestyle. Telkomsel’s current strategy is basically the same as other e- money players which is to add more merchant partnerships and improving its infrastructure. According to the resource analysis, Telkomsel’s reliable resources include its physical resources, strong financial performance, large customer-base, and good reputation. Meanwhile, the value chain analysis result shows that the marketing and sales activities enhance the business activities. With the industry’s low attractiveness, Telkomsel is expected to offer a unique and innovative product than others. Therefore, the suitable business strategy for T-Cash Tap based on Porter's Generic Competitive Strategies is differentiation which combines uniqueness with broad target. T-Cash Tap itself is one of T-Cash’s points-of-difference 64 because it utilizes NFC technology for in-store payment which is the first in the industry. Eliminating USSD and SMS interface, the utilization offers a faster payment process since it reduces the long payment process and time for transaction payment. Based on the strategy canvas, even though ideally in terms of customer service, process, and infrastructure, T-Cash Tap should be at least in the same level as bank players, T- Cash Tap offers different value in terms of feature, place, price, and promotion. Due to the restrictions applied, T-Cash Tap is currently focusing on middle-upper pyramid, particularly those who spend up to 10 million per month.