After the demonetisation policy in India was set, the government continues its aim by backing multiple payment apps that work without cash. One of these apps, BharatQR code works by allowing the customer to scan a quick response (QR) code and enter the amount to be paid to the merchant. The money is then transacted between the customer’s bank account and the merchant’s, eliminating the need of an intermediary like a credit card machine. Thus, opening the market for new contactless payment users without the need for a credit, debit, or digital wallet. “This is a major revolutionary step because of interoperability. The merchants will be identified by one QR code whether the payment is through Mastercard, Visa or RuPay and this will result in deepening the acceptance in infrastructure,” according to Dewang Neralla, Chief Executive Officer of Atom Technologies. However, not all banks are compatible with BharatQR code. Therefore it has only available with selected banks.
According to RFi Group data, the integration of BharatQR code will address a few of the payment frustrations that consumers in India are currently facing.
According to RFi Group data, the integration of BharatQR code will address a few of the payment frustrations that consumers in India are currently facing. 28% of consumers say that cards are not being accepted at shops and therefore it is an area of payment frustration while 26% of consumers are unhappy being forced to pay cash at ‘cash only’ places.
Source: RFi Group – India Priority & Retail Banking Council (H2 2016)