Open the application, scan the QR code, and pay- it’s as simple as that! This easy 3-step process has recently become a cornerstone for digital payments not only in India but across the globe. The invention of the QR code encouraged a healthy consumerism culture over the last few years and eased the way merchants receive cashless payments from their clients. However, as multiple PSOs (Payment System Operators) started joining the QR code foray, it became difficult for customers to overload their smartphones with different payment applications.
You host Paytm QR code only in your shop, but the customer who purchased from you uses Google Pay or PhonePe. How will you receive payment from them? Back to cash? If they don’t have sufficient cash, they will hop to another shop that accepts PhonePe or Google Pay QR codes. The RBI directed all digital banking apps and PSOs to stop generating closed-loop QR codes to prevent this hassle. They are now required to generate an interoperable BHIM UPI QR code that can work on all apps.
How Does UPI QR Code Help?
The problem mentioned above can be easily solved with a UPI QR code. It allows merchants to accept payments through all UPI-enabled applications, irrespective of who the issuer is. You do not need to host different QR codes for different PSOs. By streamlining your entire ecosystem of digital payments, the BHIM UPI QR code saves you from the hassle and the loss of losing customers.
Abiding by the circular published by RBI, almost all digital banking apps and PSOs have now asked their UPI QR code generator company to issue relevant codes to their merchants. The use of interoperable QR codes is aimed at achieving these objectives:
- Enhanced convenience to the customers
- Embracement of digital payment and cashless transactions culture
- Simplified and streamlined receipts for the merchants
The move is more fitted to the current Covid-19 pandemic, where social distancing is required, and the use of cash is discouraged. Since neither merchants nor customers want cash to change hands, the scenario has resulted in an increase in the number of customers and merchants using UPI QR code as a payment mode. According to an NPCI report, 2.07 billion UPI payments were carried out in October 2020, with a growth rate of over 15%.
Benefits of BHIM UPI QR Code
When merchants generate UPI QR code, these are the benefits they get:
No POS Machines Required: With a UPI QR code generator, you can do away with accepting payments through a POS machine. UPI serves the same mode of payment, just like a POS machine. When your customers swipe their debit or credit card in your POS machine, money from their account is transferred to your account. Similarly, when a customer scans your UPI QR code, the amount is transferred to your bank account from their PSO. Accepting payments through the BHIM UPI QR code also saves the transaction fee you have to pay for the POS terminal.
Diverse Options for Payments: Broadening the variety of payment options you offer to your customers matters a lot. Doing this will not only increase your sales but also add value to your customers’ shopping experience.
Security: Many individuals are doubtful about using their debit or credit card for making payments through POS machines. They fear that their sensitive information may get stolen. A UPI QR solutions provider company generates codes in such a way that no data needs to be revealed to a third party. This offers more confidence and a sense of security to the customers.
Where to Use a UPI QR Code?
Basically, there are two different types of QR codes, dynamic and static. The use of both differs based on the use case. Once a UPI QR code generator company generates a static code, no one can alter it and track metrics with it. On the other hand, you can modify dynamic QR content and code and track metrics using it.
Usually, static UPI QR codes are more suitable for retail stores and ID cards. However, you may go for a dynamic code for bills, invoices, delivery receipts, and POS. If you sell your items on credit, your customers may scan their invoice’s QR on the due date to make the payment.
The expanded use of UPI QR codes aims to centralise digital payments and elevate customers’ convenience in India. Hiring a UPI QR code generator company can streamline your receipts and make due and revenue management better. When you generate UPI QR code, you receive UPI payments directly into your bank account.
FidyPay is a Banking as a Service platform that enables you to generate UPI QR codes to accept payments from your customers. Integrate our UPI QR code generator into your system and gain an edge over your competitors by accepting UPI Payments from your customers.