Bharat QR Code - A Revolution In Payment System
- Post By : Trupay
Government of India is promoting digital economy in the country, in a big way. After the launch of digital payment system like UPI, BHIM, Aadhar Pay, a new payment method, has been launched using QR code. Bharat QR Code is the latest initiative to boost digital transactions. It makes use of the QR codes system.
Bharat QR code was launched in Feb. 2017, and aims at enabling seamless payment for buyers by using "scan to pay" method, instead of swiping their debit or debit cards at Point-of-Sales machine. Bharat QR is considered as the world's first interoperable payment system that works on QR code.
QR or Quick Response code is a small square shaped printed code which is made up of grids of several tiny black squares. They store the required information and trigger the required process when these are scanned by the camera in a smartphone.
- Bharat QR code is developed by The National Payments Corporation of India (NPCI) and has gained affiliation of all major cards issuing companies such Mastercard, Visa, Rupay and American Express.
- The interoperability of the Bharat QR Code ensures that a customer having a bank account in any bank will be able to pay directly the merchant who may have his account in another bank.
- The merchant will only need to display a single QR code instead of having multiple QR codes of different payment partners.
- With Bharat QR code, people do not need to carry their card or get stranded in case of loss of cards or its expiry.
How To Use Bharat QR Code
- A customer is required to download the banking app with Bharat QR code functionality. Once it is installed and secured with a secret PIN, it is ready for use.
- At the Point of Sales, he will only need to open the app and scan the merchant’s Bharat QR code. He will then enter the amount and authenticate the transaction. It is as simple as that.
- The amount is instantly transferred from his account to the merchant’s bank account. Both the merchant and the customers will receive instant notification of the payment.
- Bharat QR code will eliminate the need of having a separate POS card-swiping machine the merchant outlet.
Enhanced Security For The Buyer
- Bharat QR code works on a secure Two-factor authentication method.
- Physical security of the debit or credit card is also ensured as the buyer need not present it for swiping, nor he needs to key in any sensitive information like PIN, at the merchant outlet.
More Economical And Quick
- Unlike other modes of e-payments like cards or wallets that need to be compatible, Bharat QR code is interoperable and works across accounts in different banks.
- There is no loss of interest by way of blocked funds; or commissions which the credit card issuing companies or mobile wallet companies charge.
- Also, the funds get transferred instantly into the bank account through IMPS and can be used by the merchant immediately.
- These translate into huge benefits for both the customer and the merchant.
Advantages Over E-Wallets
- The usual payment portals required money to be loaded into their wallets first and then only it can be used for further payments. During the time money is in the wallet, it earns no interest. On the contrary, while using Bharat QR code, the money remains in the bank account and continues to earn interest, till it is transferred.
- To make transactions through these portals, both the parties must be having the same payment service. Thus it severely restricts the usage of such methods. The biggest strength of Bharat QR code is its interoperability, and there no such limitations.
- These third-party apps charge a transaction fee for transferring the amount in the bank account. Bharat QR code charges are at a minimum and commensurate with the usual banking IMPS charges.
- The user also faces the inconvenience of a limit in the amount of transaction. In Bharat QR code there is no such limits and is limited only to the usual banking norms. Also, there is no limit on how much money goes to the merchant’s bank account.
Bharat QR code eliminates all inconvenience, risks, delays and investments in hardware. It provides a seamless, real-time way to make payments. It is like having your bank and all cards in your mobile phone.