Customers must scan the QR code and enter the transaction sum to use Scan and Pay, a mobile-based digital payment service.
While the digital payment alternative ‘Scan and Pay’ has been around for two years, it has only recently gained traction following the demonetisation of high-value currencies. The evolution of this mode of payment has managed to carve a niche for itself in the cashless payments domain, with the increasing drive towards a less-cash economy.
What is Scan and Pay, and how does it work?
It’s a mobile-based payment system that lets you move money by scanning a QR code with an app that supports the functionality. It can be used to make purchases at a variety of locations, including merchant outlets, e-commerce websites, and grocery stores.
What is the mechanism behind it?
Customers need to do nothing more than scan the QR code and input the transaction number. Without the use of a swiping machine, the funds are transferred directly from the bank account. It removes the need to enter the merchant’s ID or phone number in order to complete a transaction.
Scanning and paying for mobile banking apps works like a virtual debit card that can be used online or offline.
How did it come to be?
Visa launched mVisa, a QR code-based payment option for Visa cardholders, around two years ago.
MasterCard released an interoperable Masterpass QR in November 2016 that could be used with other networks. RBL Bank was the only bank to include a Masterpass QR code in its app to allow for face-to-face transactions.
QR code transfers are also possible with e-wallets like Paytm, Mobikwik, and FreeCharge, but both the recipient and the sender of money must have these mobile wallet apps.
However, until the launch of Bharat QR, a popular QR code jointly established by four major card payment companies—National Payments Corp., National Payments Corp., National Payments Corp., and National Payments Corp.—the country’s QR code-based acceptance systems were largely closed.
Because of the interoperability, it was a groundbreaking move. Whether paying with MasterCard, Visa, or RuPay, merchants can be recognised by a single QR code. Bharat QR payments can also be made using an account number with an IFSC code, a UPI payment address, or an Aadhaar number.
Prime Minister Narendra Modi launched the BHIM (Bharat Interface for Money) app on December 30th, which supports the ‘scan and pay’ feature and has boosted its adoption across the world.
What are your plans for it?
To use BharatQR code as a customer, you must have a smartphone and the BHIM app or a bank app that is compatible with BharatQR code.
Although most banks have multiple apps, the BharatQR code is only available on a few. ICICI Bank, for example, has incorporated BharatQR into its Pockets and iMobile apps. The BharatQr code feature has been added to HDFC Bank’s PayZapp app. BharatQR will be integrated into at least one of the other supported banks’ apps in the near future.
You can connect your bank account to the BHIM app or a bank app and generate a unique BharatQR Code as a retailer or shopkeeper (static QR or dynamic QR). In the case of static QR, the generated QR code can be printed and placed on the counter for use, while in the case of dynamic QR, a new QR code is generated for each transaction. You, as a customer, will not need to enter the amount; simply scan and enter the PIN, and the transaction will be completed.
The sender and receiver of QR code-based e-wallet transactions must both have an account. For example, if you use Paytm to transfer money or pay for something, the recipient must also have a Paytm account and a Paytm code (QR code) in order for the transaction to be completed. Paytm users are unable to transfer money to Mobikwik, FreeCharge, or any other wallet customer.
Are there any offers from card companies or e-wallet providers to increase adoption?
Yes, all card companies and e-wallet providers have a plethora of deals or discounts on scan and pay transactions.
Paytm customers, for example, were eligible for cash back once every five effective scan and pay/OTP (one-time password) transactions of Rs50 or more for a limited time; the cashback ranged from Rs5 to Rs50.
IRCTC and Visa have launched a special offer for customers who use the mVisa (Scan & Pay) option on the IRCTC payment page, which includes a discount of up to Rs50 for payments made between 5 May and 4 September.
“When it comes to QR code adoption, there is still a lot of work to be done in terms of educating both merchants and consumers. “Most of them have no idea the app can be used to search and make payments,” said Dewang Neralla, CEO of Atom Technologies Ltd, a payment service provider.
The need to build acceptance infrastructure across the country is critical, and it can only be accomplished if banks aggressively promote the ‘scan and pay’ payment alternative, according to Neralla.
The 10 Best Scan To Pay Apps Will Make It Easier To Pay
Paying for your transactions or sharing a bill has never been simpler thanks to payment apps. These ten applications cater to a wide range of users.
Have you ever been out to dinner with a group of friends, only to have the restaurant refuse to split the bill? If you don’t have enough cash to cover your portion of the bill, you will be left with the whole bill and promises from friends to repay you.
Unfortunately, getting others to pay you is impossible, and even if they do, the payments will never add up. Fortunately, everybody has a smartphone and can quickly download payment apps to solve this problem.
Here’s all you need to know about payment apps and how they’re making it easier than ever to transfer money.
What are payment apps and how do they work?
You can use your phone to make payments with payment apps.
If you’re always rummaging through your bag for the right card to pay with, these applications will make shopping at the supermarket a lot easier. In most cases, payment apps allow you to connect your credit cards or bank accounts. Then, without getting your credit card, debit card, or checks on hand, you can make payments directly from the app.
You may be able to pay by tapping your phone at a point of sale rather than swiping a credit card, depending on the software you download and your phone. You may be able to pay for other payment apps or phones by showing a code that the cashier will check.
You can transfer money to friends and family using payment apps.
You can send money to an email address or a phone number for most apps, but some apps also allow you to send money to your friends via social media.
It’s important that you learn everything there is to know about how payment apps function. If you use a bank account or an in-app balance, most payment apps allow you to send and receive payments for free. You will have to pay a charge to submit or receive money if you use a credit card.
Apps can also charge additional fees if you want to transfer money from your app account to your bank account. You may be limited on how much money you may submit every day, week, or month depending on the app.
Why do you think of using a payment app?
They make it easier to pay.
Apps for making payments will make your life a lot easier. You could store all of your credit cards and other payment methods in a payment app rather than bringing them around with you.
They’re useful in terms of safety.
Another advantage is that you won’t have to cancel a lot of cards if you misplace your wallet or purse. And if you lose your phone, you shouldn’t have to worry about anyone else accessing your payment details if it’s properly protected.
Apps for making payments aren’t for everybody.
Some people find payment apps useful, although others find them inconvenient. Payment apps can be more frustrating to use than conventional payment methods for those who struggle with technology.
Some payment apps aren’t available if you don’t have a compatible phone. Thankfully, there are a variety of payment methods that do not require the use of an app. You can also pay with a credit card, a check, PayPal.com, or your bank’s bill payment service.
When searching for a payment app, there are many things to remember. To begin, double-check that the payment app is compatible with your phone. Apple Pay, for example, does not function on Android devices. You should also think about how much it costs to use the app. Some are completely free, while others can charge a fee to submit or receive funds.
The most critical characteristics of payment apps
Each payment app has its own set of features to think about. Take a look at the following things in particular:
- Compatibility with smartphones.
- You have a limit to how many you can submit.
- The cost of sending or receiving money.