Post demonetization the surge towards digital payments have gone high as people face cash crunch situations every day due to less cash availability. While e-wallets have become the most prominently used medium of transactions, QR (Quick Response) codes are also starting to pick up steam among the large smartphone-browsing crowd.
You may be familiar with using QR codes as it is present in popular messaging apps such as WhatsApp and Snapchat and so on. However, for digital transactions, Paytm which has a QR code feature might be the most used smartphone app that consumers use to pay for products without having to pay cash.
Regardless of how QR codes are used, to drive acceptance of digital payments in the country, the government of India has also asked RuPay, Mastercard and Visa to have a common Quick Response (QR) code-based payments solution.
The government's move is directed towards helping shops across India accept electronic payments in instances where card swipe machines are missing.
How Will it Work?
Basically, a merchant will display the common QR code and then customers can scan the code using a smartphone app linked to any of the three payments networks of RuPay, MasterCard and Visa. The money will then be directly transferred from the customer's account to the merchant's account.
In addition, QR-code based payments will not require a physical card and the government's interoperable QR code-based solution will allow payments through multiple gateways.
Available QR Code Payments Services
Well, among the three payments network, Visa has been the first to deploy QR Code payments when it launched mVisa in Bengaluru over a year ago. Over time, mVisa has now been picked up in different markets across the world.
Recently, MasterCard also launched its solution Masterpass QR service which was found in Ratnakar Bank-partnered Ongo payment wallet.
As for RuPay, which is an Indian domesticated card scheme launched by the National Payments Corporation of India (NPCI) is expected to launch its own QR code solution shortly.
Interestingly, this might be the third move where the government is pushing cashless payments.
Easy Payment for Face-to-face Purchases
Apart from these financial services corporations, the e-commerce site Paytm has also introduced QR code-based payments on the Paytm Wallet app. Moreover, Paytm seems to have gone on an overdrive to acquire merchants remotely by allowing them to start accepting payments by merely downloading the application.
Nonetheless, QR code-based mobile payments solution might make things a little bit easier for people and help them cope up with the demonetization exercise.
Likewise, it will help mobile banking users safely pay for face-to-face purchases using just their smartphones or feature phones.