Features of Bharat QR code based payments

What is QR code?

QR code stands acronym for Quick Response code made up of black and white squares.  These two-dimensional codes can be read by the camera of a smartphone and they are used for storing URLs and other information.

What is the Bharat QR code?

The Bharat QR code is low cost, interoperable mobile-based universal payment solution which enables seamless transactions across banks for American Express, Master Card, RuPay, and Visa cardholders.  The bank customers can pay for their purchases at merchant outlets by simply scanning BharatQR using their bank’s app. In short, customers need their bank app or BHIM app installed on their phones.

How the QR code works

At merchant establishments, customers have to open their app, tap on Scan QR code or Scan & Pay and scan the Bharat QR code (Option system may be slightly different from bank to bank). Once the code is scanned, the customer has to enter the amount payable with brief remarks and enter a four-digit PIN. When the authentication is complete, the amount will be transferred to the merchant’s bank account.

What are the advantages of the Bharat QR code payment solution?

Nowadays, QR code-based payments are largely accepted by merchant establishments across the country, they are mostly closed systems.  The e-wallet apps such as Paytm, Freecharge, and Mobikwik have been doing QR code service business in India, but their payment solutions are not built on the interoperable standard. For example, one cannot transfer money from a Paytm wallet to Freecharge or MobiKwik.  Thus, the transactions could take place only when both parties have the same app.

The Bharat QR code developed by NPCI is built on an interoperable standard which will support Visa, Master Card RuPay cards etc. for uninterrupted acceptance of all cards. The advent of this technology is that it will enable the merchants to accept digital payments without the Point of Sale (POS) machine. The bank customers with their smartphone app can make payments using their debit card in a secured manner.  The merchant need not invest money in buying POS machines as well as they need not pay transaction fees to the banks.

Whether the facility is available in all commercial banks?

Bharat QR code facility is implemented in many banks including SBI, Bank of Baroda, Bank of India, IDBI Bank, Union Bank of India,  Axis Bank, Citi Union Bank, DCB, Karur Vysya Bank, HDFC Bank,  ICICI Bank, RBL Bank, and Yes Bank. Many other banks are also on the line for implementing the system.

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