With In­di­aQR Launch, Re­tail Pay­ments to Get Dig­i­tal Edge

The Economic Times - - Companies: Pursuit Of Profit -

Mum­bai: In­di­aQR, a prod­uct pro­moted by the Naren­dra Modi gov­ern­ment to drive re­tail pay­ments to dig­i­tal modes, is ex­pected to go live on Mon­day. In­di­aQR is a com­mon QR code jointly de­vel­oped by all the four ma­jor card pay­ment com­pa­nies Na­tional Pay­ments Cor­po­ra­tion of In­dia that runs RuPay cards along with MasterCard, Visa and Amer­i­can Ex­press, un­der in­struc­tion from the Re­serve Bank of In­dia (RBI). It al­lows any cus­tomer who has a debit card to make re­tail pay­ments us­ing their smart­phones.

This is sup­posed to be one of the key com­po­nents of the multi-pronged ap­proach of the gov­ern­ment to boost dig­i­tal pay­ments at re­tail mer­chant points across the coun­try, where cash re­mains the ma­jor means of ex­change.

“This is the first time that all ma­jor pay­ment com­pa­nies are com­ing to­gether to form a sin­gle QR code with data fields which can iden­tify all the four ma­jor card schemes’ data fields,” a per­son fa­mil­iar with the de­vel­op­ment said. RBI will launch In­di­aQR on February 20, and 5-8 banks will go live in the first phase, peo­ple close to the de­vel­op­ment said.

It will work on banks’ mo­bile apps. A cus­tomer on pur­chas­ing some­thing just needs to open their bank’s mo­bile banking app on their smart­phones and scan the mer­chant’s QR code. Then they can put in the amount and process the pay­ment.

To make this work, banks will have to in­te­grate debit card de­tails of cus­tomers into the mo­bile ap­pli­ca­tion and also on­board max­i­mum num­ber of mer­chants to ac­cept such pay­ments so that the scheme is suc­cess­ful.

In­dus­try in­sid­ers said In­di­aQR has the po­ten­tial to solve the prob­lem of a point of sales (PoS) ter­mi­nal, which is not only ex­pen­sive but also in most cases does not make sense to be in­stalled at small mer­chant out­lets be­cause there are not as many trans­ac­tions.

“In­di­aQR will be as­set light and since it will only need a print out of the code will re­quire no main­te­nance, ideal for small mer­chants,” said the per­son quoted ear­lier. “Mer­chant pay­ment rates will be ap­pli­ca­ble as in the case of PoS ter­mi­nals.”

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