Bharat QR Launched: India’s Code Based Payment System – another small step towards realising the government’s vision of a less-cash Indian society was launched on Monday.
Bharat QR is a common platform for QR code based payments across banks and card network operators. It is the result of collaboration between four payment networks operating in India – National Payments Corporation of India, Visa, Mastercard, and American Express.
After various new payment methods like UPI payment and BHIM App for smartphones, Government of India has now launched Bharat QR code.
Bharat QR Code, the latest initiative to boost digital transactions, will make use of QR codes system for payments across merchant outlets. The solution comes as a first of its kind throughoout the globe.
Bharat QR code, a consumer can simply open his or her banking app or BHIM app, scan the merchant’s QR code, enter the payable amount and enter the four digit code to authenticate the transaction.
The amount will be directly transferred to the merchant’s bank account once the transaction is complete.
In short, Bharat QR code will provide customers with an easy scan and pay option irrespective of their card type.
Both the merchant and the customer will receive instant notification after the payment is successful.
The method would eliminate the need of PoS machines on a merchant outlet.
This will help merchants in avoiding investments in PoS machines and the transaction fees charged by the banks for transactions through the PoS systems.
The merchants will now just need to avail the Bharat QR code for their outlet and display it at the payment desk.
Bharat QR code will certainly remove a lot of discrepancies in using digital money for the citizens.
Hence digital payments will be made much easier for both the parties after this launch.
If in case a user loses his or her smartphone, all they need to do is call their respective bank and inform them of the mishap.
The initiative will also support payments through UPI Payment Address and AAdhaar Number soon.
Facts About Bharat QR Code
1) Massive Collaboration
This is for the first time that all major payment gateways operating in India have joined forces to develop a common payment processing platform, based on the guidelines of RBI. NPCI (which manages RuPay cards), Visa, Mastercard and American Express have all come together to form a common ground for accepting payments. Hence, it won’t matter whether you are paying via Visa enabled debit card or the merchant has a Mastercard enabled bank account. Whether you have a Axis Bank account or the merchant has a Allahabad Bank account. The QR code shall be the common gateway for making and receiving payments from any bank, using any payment gateway.
2) Who Are Part of Bharat QR Code?
As of now, 15 banks are part of Bharat QR Code platform: SBI, Axis Bank, Bank of Baroda, Bank of India, Citi Union Bank, Development Credit Bank, Karur Vysya Bank, HDFC Bank, ICICI Bank, IDBI Bank, RBL Bank, Union Bank of India, Vijaya Bank and Yes Bank. More banks are soon expected to join the mega-forum.
3) How can you make payments using Bharat QR Code?
Say, you are a customer of HDFC Bank. You need to open the PayZapp app, which is HDFC Bank’s official payment app. You will scan the Bharat QR Code from within the app, enter the amount to be paid. Then, an authorization request would be sent to the bank. After verifying your identity, and the bank will send a PIN, which needs to be entered in order to make the payment complete. ICICI Bank customers will use Pockets app and so on. Hence, the official app of your bank needs to be installed for using Bharat QR Code based payments. This is the static form of payment.
4) Dynamic Payments
There is another form of payment called Dynamic payment mode. Under this, the merchant will generate a new QR code every time, for every new transaction. Here, the customer need not enter amount but simply scan the new QR Code, and enter the authorization code for completing the payment.
5) UPI Integrated
Bharat QR Code also supports UPI-based payments. Hence, BHIM App can be effectively used for making the payment. And considering BHIM App can include bank account details of various banks, it would be interoperable with various accounts.
6) Open Payment Interface
Right now, there exists several QR-code based payment interfaces. Visa’s mVisa is a prominent one, so is MasterPass QR code by MasterCard. Paytm has it’s own QR code based interface, for which they have recently allocated Rs 600 cr for expansion. But the issue with these existing QR code based payment gateways is their closed system. Hence, mVisa will only work for Visa card holders, while MasterPass will only work with MasterCard holders and the same with Paytm. However, with Bharat QR Code, Visa, Mastercard, American Express and RuPay, all users can seamless make and accept payments. Integration of Bharat QR Code will private wallets such as Paytm hasn’t been announced yet.
7) Cheaper Cashless Payments
With Bharat QR Code, the requirement of PoS machines for swiping cards goes away, which makes it more secured, less time consuming, and more importantly: cheaper. With no transaction cost involved, going cashless via Bharat QR Code will drastically bring down the total costs involved, for both the consumer and the merchant. In a way, Bharat QR Code makes cash and cashless transaction same in terms of value, and also saves time. A big win for the digital economy.
Now, it all depends on the execution and creating awareness about this fabulous ‘Make in India’ financial product, which is also World’s 1st such platform.
Whtas in Logo
Landor, a brand consult
ing and design firm creates a Bharat QR Logo
Speaking on the brief that was given to them, Lulu Raghavan, Managing Director, Landor Associates, said, “ICICI Bank is our client and they were leading this consortium and that is how we were approached. They explained to us that this was a bold new initiative that will aid in digitisation and that it is very different because many of the competitive banks and network operators were coming together to create this new product. They told us that the identity needs to be very simple and straightforward because everyone from someone in a village to
a person in a big city should be able to understand what Bharat QR is all about. They also wanted it be very clear on mobile because mobiles were the medium and wanted it to stand out even in the local ‘kirana shops’. So it was quite a straightforward, simple brief.”
Although the brief was very simple, Raghavan acknowledges that sometimes the simplest briefs are the most difficult.