Bharat QR code
How does it work:
QR code or Quick Response code is a two-dimensional machine-readable code that is made up of black and white squares and are used for storing URLs or other information. These can be read by the camera of a smartphone.
You no longer have to swipe your credit and debit card through a PoS terminal but simply scan the QR code and transfer payments.
To use the Bharat QR code, a customer should download the concerned application of a compatible bank on her smartphone. The code works both for Android and iPhone.
Current state of our economy:
- There exist huge variations in India when it comes to digital payments. Our retail system is dominated by neighborhood stores
- In March 2016, there were 24.5 million credit cards and 661.8 million debit cards that were being used in the country, according to the Reserve Bank of India. But only 700,000 merchants accept card payments.
- This is reflective of the existence of a huge gap in our effort towards achieving a digital economy
National payment corporation of India:
NPCI is a government-owned body, regulated by RBI, that will look after the overall payment mechanism through this QR code. Earlier, NPCI has successfully launched its UPI application and USSD feature for making payments.
Bharat QR is developed by NPCI, MasterCard, and Visa, to expedite India’s transition towards a less-cash economy.
Advantages of Bharat QR code:
- Technological problems will be reduced and the move will help overcome issues that arise due to card loss and card expiry.
- It is a step ahead of e-wallets, as the payments will be directly received in our bank accounts
- It is interoperable with all banks and is not a closed loop system.
- This will help reduce costs for merchants as they no longer need to install a PoS machine at their shops.
- It is supported by all major payment terminals which makes the entire payment process quick and handy.
- This helps us to overcome security issues and lack of connectivity, drawbacks that are generally associated with card use.
- It is a completely Made in India product.
- With this we are trying to leverage indigenous technology and create a favourable ecosystem towards digital payments.
With the launch of Bharat QR code and BHIM app, companies will see a downturn in their businesses, who saw their businesses grow multifold after the demonetization.