How Bharat Qr Code Works?

BHIM (Bharat Interface for Money - BHIM App) is a Mobile App developed by National Payments Corporation of India (NPCI) based on the Unified Payment Interface (UPI). It was launched by Narendra Modi, the Prime Minister of India, at a Digi Dhan programme at Talkatora Stadium in New Delhi on 30 December 2016. After expanding the scope of digital transactions through BHIM, the government has launched yet another initiative in digital payments called Bharat QR. In this article, we look at how Bharat QR works in detail.

Bharat QR

With Bharat QR, merchants can accept digital payments even without a card swiping machine. Government has launched several initiatives on the cashless front post demonetisation. These include the BHIM app, Aadhar enabled payments and USSD platform for feature phones. To pay using Bharat QR, the customer just needs to be on the mobile app of one of the banks and scan the QR code displayed at merchant outlet to transfer payment. The payment system has been jointly developed by Mastercard, Visa and Rupay. Hence, any of the major payment networks can be used. Experts believe that Bharat QR's launch will offer competition to Paytm's product. Besides working as a common interface for the Visa/MasterCard/RuPay platform, Bharat QR will also facilitate acceptance using Aadhaar-enabled payments and Unified Payments Interface (UPI) - potentially making the platform free of charges.

Banks Accepting Bharat QR

Currently, about fifteen banks are on board the Bharat QR code system. This includes State Bank of India, Union Bank of India, Axis Bank, Bank of Baroda, Bank of India, Citi Union Bank, DCB Bank Ltd, Karur Vysya Bank, HDFC Bank Ltd, ICICI Bank Ltd, IDBI Bank Ltd, Punjab National Bank, RBL Bank Ltd, Vijaya Bank and Yes Bank Ltd.

How Bharat QR Works

Bharat QR code has a static and dynamic variant. In a static QR code, the code has to be scanned before entering the amount on your smartphone and authorized with a PIN, after which the money will get debited. Hence, in a static QR code, the merchant can display the code to receive payment. or he can generate a new QR code for every transaction- the dynamic QR. In case of a dynamic QR code, a different QR code can be generated for every transaction based on the amount of payment requested. The payor just needs to scan and enter the PIN and the payment is done. As of now, Bharat QR is available on mobile apps of 15 banks, but more banks are expected to join once it gains traction.

Market Overview

QR code-based acceptance systems are prevalent in India but they are all closed systems. E-wallets like Paytm also enable transactions through the QR code but both the parties need to have a Paytm account to use it. Banks also allow QR Code payment through MVisa, a QR code-based payment facility for Visa cardholders and Master Pass QR which was compatible with Master Card and other networks.

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Frequently Asked Questions

Common questions about Bharat QR Code Payment System: Seamless Transactions in India.

Bharat QR Code is a quick response (QR) code-based payment system developed jointly by Mastercard, Visa, and RuPay. It allows merchants to accept digital payments without a card swiping machine. Customers can simply scan the QR code displayed at the merchant's outlet using their bank's mobile app and transfer the payment.

Bharat QR Code has two variants: static and dynamic. With a static QR code, the customer scans the code and then enters the payment amount on their smartphone, authorizing it with a PIN. In the dynamic variant, the QR code is generated for each transaction with the specific amount, so the customer only needs to scan and enter their PIN.

Bharat QR Code offers a convenient and cost-effective way for merchants to accept digital payments without the need for a card swiping machine. It also promotes cashless transactions, which are more secure and efficient than cash-based payments. Additionally, it works across multiple payment networks, providing customers with more payment options.

According to the article, around 15 banks are currently on board with the Bharat QR Code system. These include State Bank of India, Union Bank of India, Axis Bank, Bank of Baroda, Bank of India, Citi Union Bank, DCB Bank Ltd, Karur Vysya Bank, HDFC Bank Ltd, ICICI Bank Ltd, IDBI Bank Ltd, Punjab National Bank, RBL Bank Ltd, Vijaya Bank, and Yes Bank Ltd.

Yes, the article mentions that Bharat QR Code will facilitate acceptance using Aadhaar-enabled payments and Unified Payments Interface (UPI), potentially making the platform free of charges.

Unlike some existing QR code-based payment systems like Paytm, which require both parties to have an account with the same platform, Bharat QR Code works across multiple payment networks. It provides a common interface for Visa, Mastercard, and RuPay platforms, as well as Aadhaar-enabled payments and UPI.

As of the article's publication, Bharat QR Code was available on the mobile apps of the 15 banks mentioned. However, the article states that more banks are expected to join once the system gains traction.

With a dynamic QR code, a unique code is generated for each transaction based on the specific payment amount. This eliminates the need for the customer to enter the amount separately, streamlining the payment process. Static QR codes require the customer to enter the amount after scanning the code.

The article mentions that the Indian government has launched several initiatives to promote cashless transactions after demonetization, including the BHIM app, Aadhaar-enabled payments, and a USSD platform for feature phones. Bharat QR Code is another such initiative aimed at making digital payments more accessible and convenient for merchants and customers.

The article does not provide specific information about using Bharat QR Code for international transactions. However, since it works across major payment networks like Visa and Mastercard, it is possible that it could be used for international transactions, subject to the respective network's policies and regulations.