QR codes have become a standard use case for making mobile payments in India these days, and Paytm claims to have pioneered the technology in the country.
But mobile wallet players have kept themselves restricted to their ecosystem till now, which is understandably changing with the entry of Unified Payment Interface or UPI.
This payment standard has amassed over 1 billion in transaction value since its debut few years back, thanks to third-party apps like Google Pay, PhonePe and Paytm among others.
Which is why it has become important that QR code doesn’t lose its essence, and for this Paytm is now allowing its users to make payments via QR code from any payment entity.
With UPI payment, users aren’t required to get KYC (Know Your Customer) done, offering them flexibility of using multiple apps within the same ecosystem. This is probably the closest we’ve come to experience interoperability in the digital payments space in India.
How to Make Payment via QR Code
- Open Paytm and click on ‘Pay’ on top-left
- Allow the app to access your phone’s camera
- Scan the QR code using the camera on the app
- QR Code will be detected, take you to Payments page
- Pay via UPI account, using four digit code
With UPI, the user doesn’t need to repeatedly recharge their wallet, and their KYC is done via their registered bank account. Just like using ATM card with a four digit PIN, UPI payments are done via a four digit code, that needs to be kept confidential.
All this convenience has ensured that people prefer using mobile payments (via UPI) instead of taking out their debit/credit card to make payment at petrol stations, restaurants and grocery stores among others.
The numbers speak for itself, and reports suggest that Google Pay and PhonePe and overtaken Paytm in the segment, which seems to have forced Paytm to open its acceptance with other UPI-centric QR codes.
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