Bharat QR Code Digital Payment System

Bharat QR Code Digital Payment System

The role played by the Quick Response (QR) Code in the digital payment system is vital one, and in fact, the QR makes the process of digital payments so simple. The invention of QR code in 1994 was mainly utilized for tracking the vehicles when they are in manufacturing stage, however, the usage of QR code in this digital era is truly immiscible with anything.

Bharat QR Code Digital Payment System

In general it is matrix bar code which holds the necessary information that can be readable only by the optical label. As the cashless transactions are mainly focused in the nation, Bharat QR code made a huge impact to make the society cashless.


Post demonetization, the government is taking massive steps to take our nation towards a cashless economy. Digitization of every department is made at a faster rate to promote cashless transactions. The government has introduced schemes to encourage people to perform digital payments. Digital payments increase the transparency in transactions. It reduces corruption as well as prevents black money to a larger extent.


  • Although the motive is great, turning a huge nation like India into a cashless economy country is extremely difficult. A large section of the population does not have bank accounts. Further, people with technical literacy to perform digital transactions are very few.
  • Most digital payments are done through smart phones and cards. But these things are beyond the reach of many common people in the country who don’t even have three meals a day. There are only fifteen lakh POS machines n the country. People also don’t prefer them due to the service charges associated with them.
  • Internet facility is another major requirement for digital payments. Irrespective of the mode of payment, internet connection is indispensible. Most of the people don’t have access to good internet connection. Further, In case of network failure, there is no other alternative except cash transaction.

Following the proclamation of demonetization, radical changes are taking place across the country to promote digital transactions. Digital transactions have increased by a huge amount. People use different ways to make digital payments.

Digital payment options

Digital transactions are done mostly through Cards, UPI apps, USSD, AESD and e-wallets. Government has launched various schemes to encourage the merchants as well as the public to do digital payments.

  • Android phone users can pay using UPI apps by registering their mobile numbers in banks. Funds can be transferred just by knowing the IFSC Code and account number. Various UPI app are available in the market.
  • Transactions can be made by knowing the Aadhaar number and biometric authentication. AESD and Aadhaar Payment apps support transactions using Aadhaar number. Services can be availed under this scheme at free of cost. They also support withdrawal and deposit of cash.
  • USSD transactions supports all phone users by dialing *99#. The major plus of this method is that the transactions can be done by using ordinary phones. Non-financial as well as financial transactions can be made from the mobile number registered with the bank. However, it has five thousand rupees as transaction limit per day and also service charges are levied by the banks for every transaction.
  • Credit, Debit, Prepaid cards are used predominantly for digital payments. Service charges are applicable for these transactions depending upon the bank. POS machines are a must for the shop owners to do card transactions. After swiping the card, the customer has to verify the amount to be paid. Once it is correct, by entering the PIN number transaction can be completed.
  • E-wallets are can by Smartphone users to pay bills and transfer funds. Promotional offers are provided by the wallet providers to encourage wallet transactions.

QR Code in India

QR Code transaction is another digital transaction that is on the rise due to its simple and secured transactions. It was introduced about two years ago by VISA in India. Nowadays, many mobile wallets heavily rely on these transactions. For these transactions, both the merchant as well as the customer should have the app installed in their smart phones.

Bharat QR Code

It is a unique system which gets newly proposed by the central government of India, in order to tackle the problem which can be raised in the plastic form of payments carried in the digital payment solutions. With the aid of the newly introduced BHIRM APP or any other nationalized banking app, the consumers can able to make payment by viewing the QR code from the merchant. The entire process will be at ease and almost no risk factor involved.

Bharat QR Code operation

  • It is an integrated application of BHIM app which is developed by NITI Aayog. However, ICICI and HDFC bank have integrated it in their apps. Payment can be done easily using this application. The merchant has to generate the QR Code and printed copy of that should be displayed in the shop. This is the only job needed to be done from the merchant’s side.
  • Scan the QR Code of the merchant after logging into BHIM app. It will give the details of the merchant. Enter the amount and UPI PIN. Remarks can be added if needed. By clicking send, the amount will get transferred directly to the bank account of the merchant. Amount will get deducted from the account linked with the BHIM app.

Advantage of using Bharat QR Code

  • When compared with all other existing online payment options, the payment done by the QR code method is much simpler and high secured in default.
  • Since, it doesn’t shared any kind of financial related details like bank number, card details, and so the consumers can feel more safer than the PoS machine process.

Secured transaction

Transactions done through this technique are safe since card details are never shared with merchant and no POS machines are required which will also save merchant’s money. IMPS service provided by NCPI makes the transactions more safe and secure.

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