Monday, 20 February 2017

What is Bharat QR Code and what are its benefits

Bharat QR Code is a common QR code built for ease of payments. It is a standard that will support Visa, MasterCard and Rupay cards for wider acceptance. Currently, if you want to make a cashless payment at most stores, you need a credit and debit card to swipe and enter the PIN code for authentication.

However, Bharat QR code will enable the merchants to accept digital payments without the Point of Sale (PoS) swiping machine. It will allow customers of any bank to use their smartphone app to make payment using their debit card. In terms of benefits, merchants will no longer need to invest in buying the PoS machine. With no PoS machine, merchants will also be able to do away with the transaction fees charged by the banks for using the PoS terminal.

RBI announced about Bharat QR in the press conference on its launching day ie. 20th Feb'17. Stated below, RBI Told About What is Bharat QR Code and what are its benefits in briefs.
The QR code development for card payments in India has happened at the most appropriate time; we are on the threshold of a digital payments ‘moment’ and ‘movement’.
This is a momentous occasion for the payments industry in India with the launch of this global first of its kind, low-cost, interoperable, mobile based acceptance solution. I would like to congratulate the payment networks for their enthusiastic collaboration to develop this solution. An innovative interoperable solution, the Bharat QR, that is easy to scale and provides a seamless customer experience, and above all is safe and secure, essential to accelerating India’s transition to a less–cash society. I am glad that India is setting yet another standard in the payment arena for others to adopt.
Since cards began to be used in the country in the early 1980s, the industry has set up about 1.5 million Point Of Sale(POS) terminals. However, in comparison to the 800 million cards that have been issued as of now, the number of POS terminals in the country has not been really adequate. Among other factors, the high CapEx and Opex associated with traditional POS terminals, have been the major deterrents to the expansion of POS infrastructure.
Gradually, with increasing mobile density in the country, many developments in the payments space have taken place using this channel, including m-POS on the merchant side. Now, QR code based systems leverage mobile usage on the consumer side as well. Being asset-light, they become easy to deploy. So, it is but natural that the two developments should come together to offer an efficient, secure and convenient experience for card payments.
What makes this development more momentous is that the card payment industry in the country has come together, of course at our direction, to make this process interoperable so that the users get the same experience of card payments – that is, interoperability.
No doubt, the visibility to QR code and its consequent widespread usage came from non-payments area first, followed by non-banks in payments area. These are mostly used by users within the same ecosystem and are not built on interoperable standards. However, we strongly felt that the time has arrived to consider some level of harmonisation in the use of QR-codes. Bharat QR Code has shown that it is possible!


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