After cash, it’s time to say good by to card payment i.e. retail payment using Debit and credit card. The new Bharat QR Code will make EDC/PoS terminals installed at retail store or merchant outlets.Payment to the merchant will be done using the Scan and pay concept without using the physical debit or credit card or any other payment mode.
After the success of Unified Payments Interface (UPI) for smartphones,Unstructured Supplementary Service Data (USSD) based mobile banking for basic and feature phones, Bharat Interface for Money (BHIM) app and Aadhaar enabled payment system (AePS), it’s time to end the debit card and credit card with introduction of Bharat QR Code for cashless electronics payments.
How Does Existing QR Code system works ?
Thanks to PayTm which made the QR based payment system popular in India. Later NPCI integrated the QR payment code in their BHIM apps. Currently such payment system provided by various application like PayTm are closed system.
A long back Visa launched their QR based payment system known as mVisa in India. Lot of merchant started accepting the payment using mVisa through QR code system like Tata Sky DTH, Airtel DTH etc. later master Card launched ‘Masterpass QR service’ in partnership with Ratnakar Bank’s Ongo payment wallet.
Currently market is flooded with QR code-based payment solution through e-wallet apps such as Paytm, Freecharge and Mobikwik. All these payment solution are closed system in which both parties must have the same application. As like if you are transferring money using Paytm, the recipient needs to have Paytm account and app installed in their smartphone.
One can’t send money using Paytm to freecharge account or vice versa. Bharat QR Code apps will end this limitation. Now using Bharat QR code apps, one can send money to PayTm,Freecharge or to any merchant for online or offline payment.
Benefit of Bharat QR code apps
Bharat QR Code is an open payment system supporting payment through Visa, MasterCard and Rupay cards for wider acceptance. Currently, if you want to make a cashless payment at most stores, you need a credit and debit card to swipe and enter the PIN code for authentication but the use of Bharat QR code will enable the merchants to accept digital payments without the Point of Sale (PoS) swiping machine.
It will allow customers of any bank to use their smartphone app to make payment using their debit card. There will not be use of POS machine in long run at retail outlet center. Merchant will save money as well as transaction cost for maintaining the PoS terminal.
How To Make Payment using Bharat QR code Apps ?
Payment made through Bharat QR code apps is damn easy. Currently the Bharat QR code system are integrated with the mobile banking or wallet apps of listed banks. For scanning and paying through Bharat QR code apps , customer should be having the mobile apps of their bank. For example Currently, Bharat QR is integrated into ICICI Bank’s Pockets app and HDFC Bank’s PayZApp. All other bank will be integrated and updated in future.
For using the Bharat QR code apps one must be having the bank app or BHIM app installed on phone. At the merchant’s store, follow the instruction below :
- open the app,
- Tap on Scan QR Code or Scan & Pay
- Scan the Bharat QR Code.
- Once the code is scanned, Enter the amount that you want to pay,
- Add a remark and enter your four-digit passcode.
- Once authentication is complete, the money will be transferred to the merchant’s bank account.
- That’s easy..Safe
For testing purposes , generate the QR code through BHIM Apps and pay the amount using ICICI Pockets or HDFC PayZapp apps through UPI.
How Do Merchant use the Bahrat QR code Apps ?
Process to use for Merchants , follow the steps
- Generate the Bharat QR Code through any Banks apps or BHIM apps
- Take a print out and stick it at payment desk.
- The payment will take place via (Immediate Payment Service) IMPS
- Money will be instantly credited into their bank account.
- There is no limitation on transaction limit as like Paytm,Freecharge and Mobikwik,
- There is no system of hassle of transferring money from wallet to bank account. Money will be instantly transfer to Merchant bank account.
Security Features of Bharat QR Code Apps
Concept of entering PIN at merchant location, entering CVV details etc have been abolished. In case of Bharat QR code, the transaction is completed with enhanced security, and card details remain in customer’s control.