Bharat QR code- A QR code based Payment System.

Indian Government has taken a new step in the promotion of cashless India campaign and in the promotion of digital India after the successful launch of BHIM app, now the Indian Government has come up with a QR code based payment system and named it as Bharat QR code, which is considered to be the world's first interoperable Payment Platform.This Payment Platform is considered to be a major push or step in promoting seamless and fast cashless transactions.

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National Payments Corporation of India (NPCI), which is the umbrella organization for all digital and online retail payment systems in India, is behind the development of this payment platform, which is expected to inspire and encourage more digital payments and cashless transactions, without the help of a debit or credit card.

What are QR codes?

QR codes are black and white two-dimensional code that can be read and understand by Machines, these codes take responsibility of storing the account related information of merchant and shopkeepers. Using the Bharat QR code platform, the merchants will simply have to take a printout of their QR code which is already storing their account related information or soft copy can also be used, and whenever they will be needed to take a payment they can easily show it to their customers who will simply scan the given QR code and make the payment instantly through IMPS.

There are two main advantages of using this particular form of payment system:

• The first advantage is that it will consume less time for making payments when compared to debit or credit card payment.


• Another advantage of using this mode of payment system is that now the customers won't be having to flash their debit or credit cards for making payments.

How you can make a payment via Bharat QR code:

• Let us say that 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.As of now, 15 banks are part of Bharat QR Code platform and more banks are soon to start supporting this mode of payment.


• For the dynamic mode of payment, here the merchant will generate a new QR code every time for a particular amount and after that, the customers will simply have to scan the provided code and the payment will be made instantly through IMPS. The Merchants will now need to avail Bharat QR code for their shops and businesses and won't be having to bear the charges of having a POS machine on their payment desks.


• The existing QR code based payment system are one dimensional or you can say are a closed system, for example, mVisa will only work with Visa cards holders and MasterPass will only work with MasterCard holders and same with the Paytm. However, Bharat QR code integrates all of them together and provides an interface where any card holder can perform transactions. However, a collaboration with Paytm has not been announced yet.

This has been a great step by our Indian Government to come up with such wonderful Payment Platform and overcoming the drawbacks of already existing QR code based system and from here on it will be completely depending upon the amount of awareness that will be spreaded around the country, so that lots and lots of merchants starts taking cashless payments.Proper execution of this payment system will really contribute to the success of "Digital India" campaign of our Country.

Source of Information: http://trak.in/tags/business/2017/02/21/bharat-qr-code-facts/