Paytm was the first payments wallet to mass market QR Code payments in India. By Nov 2016, within in a year of its launch, Paytm recorded 5 million transactions per day. Reportedly, they had about 850,000 merchants registered to accept such payments.
On Nov 8, 2016, the Indian Government demonetized INR 500 and 1,000 currency notes. This move was to encourage people to transition to cashless payments.
The QR Code payments sector saw a surge in entry of existing payments players like Freecharge and Mobikwik. Established payment processing companies and banks such as Visa (via mVisa), MasterCard (via MasterPass QR), and State Bank of India (via Anywhere app) also joined the list.
The entry of so many players in QR Code payments in India gave rise to a major challenge. Now merchants will need to display a unique QR Code of each payments provider. This can not only lead to confusion amongst consumers but also eat up display space of merchants.
In Dec 2016, Piyush Goyal, Minister of State for Power, Coal and Renewable Energy, lead talks with payment processing companies, banks, and Govt. officials.
The outcome: India QR
India QR is a common merchant QR Code that will be valid across payment processing companies—MasterCard, Visa, and RuPay.
How does India QR work?
This is how it works:
- The payment provider will issue an India QR to a merchant
- The QR Code will link to the merchant’s bank account details
- To make a payment, the customer has to scan the QR Code using their Visa, MasterCard or RuPay app
- These apps come with an inbuilt QR Code reader and link to the customer’s bank account
- The billed amount gets transferred from the customer’s account to the merchant’s account
Note: Customers with any bank account can transfer money, provided, both they and the merchant use Visa, MasterCard or RuPay apps.
Set to launch in January 2017, the concept of India QR is expected to make QR Code payments easier for both merchants and consumers.
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