All you need to know about Bharat QR Code

The government after banning high currency notes has been emphasizing on digital payments largely, and that is why it has launched various cashless payment initiatives like Unified Payments Interface (UPI), Aadhaar Enabled Payments System (AEPS), and Unstructured Supplementary Service Data (USSD), to promote the Digital India programme. And to make the cashless transactions easier, the government has now brought in the Bharat QR Code.

Over the last decade, a huge number of people have started making cashless payments through their credit/debit cards. However, this mode of payment came with the transaction fees and the high cost involved in using the swipe machines. But, with the introduction of Bharat QR code, digital payment system has gotten simpler for both the merchants and the consumers.

What is QR code?

Currently, to make payments consumers need to swipe their credit or debit cards and enter a PIN number for authorization. With Bharat QR code users can make payments without any swipe machines. The merchants are hence neither required to invest in the PoS machines nor do they need to pay the banks any transaction fees for using the PoS terminals. The customers only have to scan the QR code given by the merchant, enter the PIN number and money will be transferred.

Making payments using Bharat QR code

As of now, Bharat QR code is integrated only with HDFC banks PayZApp and ICICI banks Pockets app, but more banks are expected to update their UPI apps to support the new feature.

To use the Bharat QR code, it is vital that the customer either has his respective banks UPI app or BHIM app installed on his phone. Below are the steps to use Bharat QR code for making payment:

1. Open the UPI app on your phone
2. Click on Scan QR Code or Scan & Pay
3. Scan the Bharat QR Code from the merchant
4. The QR code will automatically get scanned
5. Enter the payable amount and your 4-digit passcode
6. The money will be transferred to the merchants account instantly

The benefits of Bharat QR Code

Merchants simply have to generate a QR code for the transaction, and the consumer can scan the generated QR code to make payments. The merchants no longer need to install any app for accepting payments nor do they have to keep any swipe machines. Also, there is no limit on the amount of money you can transfer through Bharat QR code, unlike the e-wallets where there is a limit on the transaction amount.

In contrast to the mobile wallets like FreeCharge, MobiKwik, and Paytm, Bharat QR code does not need both the payee and the receiver to have the same payment service for fund transfer.

Also, in the various payment wallets, the customers are first required to add money to the wallets and then use the same for further transactions. But with Bharat QR code there is no such hassle, and the customers can directly transfer money from their bank accounts. The payments using the QR code are credited directly to the merchants bank account through IMPS.

Though there are various existing QR-code based payment systems in the market, the issue with them is that the QR codes of these payment systems will work only with their respective customers. For instance, Paytms QR code system will work only with and for the Paytm users. However, with Bharat QR code all the users can make and accept payments, irrespective of the app they are using.

With Bharat QR code at hand and no PoS machines, the transactions are less time consuming, more secured and most importantly, cheaper. After the various mobile payment apps, Bharat QR code is the biggest step taken by the government to promote digital and cashless payments.