Part of the government's push towards a cashless economy, the e-payment medium has been billed as the world's first interoperable payment acceptance solution.
The Indian government is resolutely ushering the country towards digital and cashless payments through a number of schemes and apps. The latest, after the successful launch of the BHIM app, is BharatQR. The e-payment medium has been billed as the world’s first interoperable standardised Quick Response (QR) code.
But for the common man, what does the launch of this medium mean? Here are four things you need to know about the BharatQR.
Image for representation. Photo source: Wikimedia
It’s a far cheaper option to POS machines
With this medium, merchants who can’t make the investments to buy a Point of Sale machines (through which customers can swipe their debit or credit cards), can transition towards cashless transactions. The cost of POS machines start at ₹7,000.
Customers have to download their bank’s app
In order to pay through this method, customers have to download the app of their respective banks, which is compatible with BharatQR. It works on both Android and iOS. Once downloaded, the customer has to simply scan the QR code through their mobile phone and the transaction would be completed.
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Rival digital payment networks worked together on this code
RuPay, MasterCard and Visa, on the behest of the Indian government, came up with this common code-based technology. There are a total of 13 banks, as well as central banking institution Reserve bank of India, that partnered with the National Payments Corporation of India (NPCI) to make this a viable retail option.
BharatQR is NOT a digital wallet
Given its similarities with digital wallets, it is understandable for customers to think that this is yet another digital wallet that’s been introduced. But it’s not the same as customers and merchants do not have to have the same wallets for the transaction to take place. For instance, a person can pay via Paytm to another only if both the people have the app. That won’t be the case with BharatQR — all a customer needs is their respective bank apps to be able to make the payment.