The government along with the Reserve Bank of India is making all the efforts to eliminate all mediators between merchants and customers. The government has recently introduced an interoperable Quick Response (QR) code system which can be used instead of the PoS or swipe machines to accept payments.
An interoperable QR code will help the merchants accept payments directly from the customers mobile phone without any PoS terminal. A standard QR code for the various financial transactions is needed, as the current QR codes are not recognized across all the wallet applications. For instance, though PayTM has a QR code based payment system, it allows fund transfer only between two PayTM users.
How payments would be easier with QR Code
A common QR code will be able to identify multiple payments gateways like MasterCard, Visa, and RuPay. Users will be able to transfer funds from their phone irrespective of the app or the service provider they are using.
At the time of payment, the merchant will show the QR code to the customer, which he/she needs to scan from his/her phone. The app in his/her phone will automatically read the QR code and open the payment page in the mobile. The customer then needs to enter the payable amount and the mPIN he/she uses to authorize the payment. Once click on submit, the amount is credited to the merchants account.
It is evident that to use QR Code for payments, there is no need to remember any detail related either to your credit/debit card or bank account. Just your smartphone and the payment app, are more than sufficient to make payments.
On the other hand, the merchants no longer need to invest or spend on the PoS machines to accept payments. They can simply take a printout of the QR code and display in their stores.
Further, the entire payable amount can be enjoyed by the merchant, as they would not be giving commission to the credit/debit card companies or the bank whatsoever, for accepting payments through cards.
In fact, in addition to transactions between a merchant and a buyer, you can also transfer funds to a friend or family with the help of QR codes. Ask your friend to generate a QR code on his/her smartphone, scan this code from your mobile, enter the mPIN to authorize the transaction, and the funds would be transferred.
Using an interoperable QR code for payments, the credit/debit card details of the user are safe and secure, considering that the user is only using his mobile for financial transactions.
With the onset of an interoperable QR code, the growth of electronic payments in the country has been accelerated by leaps and bounds. The interoperable QR code payment system is sure to make payments incredibly easy and quick, as the user would no longer need to carry all his/her credit/debit cards. He/she no longer needs to worry about the card getting stolen/lost, or declined and expired. As the process is simple- scan the code and make the payment.
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