How to make payments to merchants using Bharat QR Code

How to make payments to merchants using Bharat QR Code.

Currently, Bharat QR is code is supported by nationalised bank BANK OF INDIA and they have also launched their BOI QR Merchant app and it has been also integrated into ICICI Bank’s Pockets app and HDFC Bank’s PayZApp, with more banks expected to update their apps with support for the same. I tried making payment using ICICI Bank’s Pocket app and it worked like a charm. To test the feature, I generated a QR code using BHIM app. Next, I used Pocket’s app to scan the QR code and the payment successfully went through via UPI.


In short, you will need your bank app or BHIM app installed on your phone. At the merchant’s store, open the app, tap on Scan QR Code or Scan & Pay (option will differ from one bank to the other) and scan the Bharat QR Code. Once the code is scanned, you will have to 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. 

With the Bharat QR code, a customer no longer needs to enter the merchant's ID or phone number to make payments

Bharat QR, a quick response code jointly developed by National Payments Corporation of India (NPCI) that runs RuPay cards, Visa, MasterCard and American Express, under instructions from the Reserve Bank of India (RBI), is set to revolutionise electronic payments in the country.

It does away with the swipe machines as digital payments can be done without traditional swiping. It is a two-dimensional (black squares arranged in a square grid on a white background), machine-readable optical label that contains information about the item to which it is attached.

With the QR code, a customer no longer needs to enter the merchant's ID or phone number to make payments. The payment can be made by scanning the QR code and entering the transaction amount. The amount is debited from the bank account without the need of a swiping machine.

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QR Code Based Payment System In India

What are the QR Code Based Payment System In India and how it is changing the payment system in India.

A look at current QR Code-based payments

The QR code-based payments are accepted by most merchants across India, but they are largely closed systems. Visa is a pioneer in QR Code payments, and it has already launched mVisa in India a year-and-a-half ago. Last year, DTH operator TataSky had partnered with Visa to allow and accept QR code-based payments from its subscribers. In fact, mVisa is the widely accepted payment option across the globe.

In November 2016, MasterCard launched its ‘Masterpass QR service’ in partnership with Ratnakar Bank’s Ongo payment wallet. RuPay was also expected to come up with its QR code-based solution, but there is no word as yet. Since demonetization, e-wallet apps such as Paytm, Freecharge and Mobikwik, among others have also seen a surge in usage. While these wallet apps also allow QR code-based payments, both parties need to have the app.

For instance, if you are transferring money using Paytm, the recipient needs to have Paytm account and app installed on their smartphone. However, there is no unified solution for the same. Meaning, I won’t be able to transfer money from Paytm wallet to a recipient using Freecharge or MobiKwik. This is where Bharat QR Code will greatly help.

What is QR Code? 

A QR code (abbreviation for Quick Response code) is a specific matrix barcode (or two-dimensional code) that is readable by dedicated QR Code/barcode readers and camera phones. The code consists of black modules arranged in a square pattern on a white background. The information encoded may be text, URL, or other data.

Common in Japan, where it was created by Toyota subsidiary Denso-Wave in 1994, the QR code is one of the most popular types of two-dimensional barcodes. The QR code was created to allow its contents to be decoded at high speed.

The technology has seen frequent use in Japan and South Korea, however, in the West, there has been a slower adoption of QR codes until recently where there has been a big increase in awareness and usage.

Overview 

Although initially used for tracking parts in vehicle manufacturing, QR codes now are used in a much broader context, including both commercial tracking applications and convenience-oriented applications aimed at mobile phone users (termed mobile tagging). QR codes may be used to display text to the user, to add a vCard contact to the user's device, to open a Uniform Resource Identifier (URI), or to compose an e-mail or text message.

QR codes storing addresses and Uniform Resource Locators (URLs) may appear in magazines, on signs, buses, business cards, or almost any object about which users might need information. Users with a camera phone equipped with the correct reader application can scan the image of the QR code to display text, contact information, connect to a wireless network, or open a web page in the telephone's browser. This act of linking from physical world objects is termed hard linking or object hyperlinking.

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What is Bharat QR Code and what are its benefits

Bharat QR Code is a common QR code built for ease of payments. It is a standard that will support 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.

However, 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. In terms of benefits, merchants will no longer need to invest in buying the PoS machine. With no PoS machine, merchants will also be able to do away with the transaction fees charged by the banks for using the PoS terminal.

RBI announced about Bharat QR in the press conference on its launching day ie. 20th Feb'17. Stated below, RBI Told About What is Bharat QR Code and what are its benefits in briefs.
The QR code development for card payments in India has happened at the most appropriate time; we are on the threshold of a digital payments ‘moment’ and ‘movement’.
This is a momentous occasion for the payments industry in India with the launch of this global first of its kind, low-cost, interoperable, mobile based acceptance solution. I would like to congratulate the payment networks for their enthusiastic collaboration to develop this solution. An innovative interoperable solution, the Bharat QR, that is easy to scale and provides a seamless customer experience, and above all is safe and secure, essential to accelerating India’s transition to a less–cash society. I am glad that India is setting yet another standard in the payment arena for others to adopt.
Since cards began to be used in the country in the early 1980s, the industry has set up about 1.5 million Point Of Sale(POS) terminals. However, in comparison to the 800 million cards that have been issued as of now, the number of POS terminals in the country has not been really adequate. Among other factors, the high CapEx and Opex associated with traditional POS terminals, have been the major deterrents to the expansion of POS infrastructure.
Gradually, with increasing mobile density in the country, many developments in the payments space have taken place using this channel, including m-POS on the merchant side. Now, QR code based systems leverage mobile usage on the consumer side as well. Being asset-light, they become easy to deploy. So, it is but natural that the two developments should come together to offer an efficient, secure and convenient experience for card payments.
What makes this development more momentous is that the card payment industry in the country has come together, of course at our direction, to make this process interoperable so that the users get the same experience of card payments – that is, interoperability.
No doubt, the visibility to QR code and its consequent widespread usage came from non-payments area first, followed by non-banks in payments area. These are mostly used by users within the same ecosystem and are not built on interoperable standards. However, we strongly felt that the time has arrived to consider some level of harmonisation in the use of QR-codes. Bharat QR Code has shown that it is possible!

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What is Bharat QR Code

Bharat QR Code is India's new digital payment system. Bharat QR Code is going to make PoS terminals and card swipe machines redundant. In this post, we are going to share how it works and everything else you want to know about Bharat QR Code.

Bharat QR Code

The government of India has been making a big push for digital payments since demonetization of old currency notes. In a move to promote Digital payment system and encourage cashless transactions, the government of India has introduced Unified Payments Interface (UPI) for smartphones, and Unstructured Supplementary Service Data (USSD) based mobile banking for basic and feature phones. The government has also introduced Bharat Interface for Money (BHIM) app, which is a unified UPI app, and Aadhaar Pay that enables you to make cashless money using Aadhaar card and your fingerprint for biometric authentication. Now, to further ease the payments process, the government has introduced Bharat QR Code for cashless electronics transactions.

Over the past few months after the move of demonetization, a lot of people have moved on from making cash based transactions to cashless transactions using various mode of payments like credit and debit cards. However, this mode of electronic payment for cashless transactions has strings attached regarding transaction fees and the cost of owning and running the card swipe machines.

With Bharat QR Code, the government has taken yet another step to promote digital payments by simplifying things for merchants and also for the consumers. Let’s dive in a little deeper to understand what is Bharat QR Code all about, how it works and what are the benefits.

A look at current QR Code-based payments

The QR code-based payments are accepted by most merchants across India, but they are largely closed systems. Visa is a pioneer in QR Code payments, and it has already launched mVisa in India a year-and-a-half ago. Last year, DTH operator TataSky had partnered with Visa to allow and accept QR code-based payments from its subscribers. In fact, mVisa is the widely accepted payment option across the globe.

In November 2016, MasterCard launched its ‘Masterpass QR service’ in partnership with Ratnakar Bank’s Ongo payment wallet. RuPay was also expected to come up with its QR code-based solution, but there is no word as yet. Since demonetization, e-wallet apps such as Paytm, Freecharge and Mobikwik, among others have also seen a surge in usage. While these wallet apps also allow QR code-based payments, both parties need to have the app.

You May Also Want To Read.

                 What Is Bharat QR?

                 WHERE WILL IT BE ACCEPTED?

                  HOW WILL IT BENEFIT ME?

                  HOW TO MAKE PAYMENTS TO MERCHANTS USING BHARAT QR?

For instance, if you are transferring money using Paytm, the recipient needs to have Paytm account and app installed on their smartphone. However, there is no unified solution for the same. Meaning, I won’t be able to transfer money from Paytm wallet to a recipient using Freecharge or MobiKwik. This is where Bharat QR Code will greatly help.

What is Bharat QR Code and what are its benefits?

Bharat QR Code is a common QR code built for ease of payments. It is a standard that will support 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. 

However, 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. In terms of benefits, merchants will no longer need to invest in buying the PoS machine. With no PoS machine, merchants will also be able to do away with the transaction fees charged by the banks for using the PoS terminal.

How to make payments to merchants using Bharat QR Code

Here we are sharing the screen shot of one of the Bharat Qr Code launched by BANK OF INDIA. you may go through the screenshot of the post to understand the basic transactions of Bharat Qr Code.

 

 

 Currently, Bharat QR is code is supported by nationalised bank BANK OF INDIA and they have also launched their BOI QR Merchant app and it has been also integrated into ICICI Bank’s Pockets app and HDFC Bank’s PayZApp, with more banks expected to update their apps with support for the same. I tried making payment using ICICI Bank’s Pocket app and it worked like a charm. To test the feature, I generated a QR code using BHIM app. Next, I used Pocket’s app to scan the QR code and the payment successfully went through via UPI.

In short, you will need your bank app or BHIM app installed on your phone. At the merchant’s store, open the app, tap on Scan QR Code or Scan & Pay (option will differ from one bank to the other) and scan the Bharat QR Code. Once the code is scanned, you will have to 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.


How will merchants benefit from Bharat QR Code?

Merchants will simply need to generate the Bharat QR Code, take a print out and stick on their payment desk. The payment will take place via (Immediate Payment Service) IMPS and the money will be instantly credited to their bank account. Unlike Paytm, Freecharge and Mobikwik, merchants will no longer have limits on the amount of money that they can accept every month. Also, the hassle of transferring money from wallet to bank account will be eliminated — further making it easier accept digital money.

What are the Security benefits of Bharat QR Code

Currently, when you give your credit/debit card to swipe, there is negligible possibilities of someone capturing crucial details such as card number, expiry date and CVV. While OTP option is enabled for two-step verification before authenticating the transaction, the risk of exposing your card details still remains. In the case of Bharat QR code, the transaction is completed with enhanced security, and card details remain in customer’s control, which is a big advantage.

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