QR Code Payment: Explained


What Is QR Code?

QR Code is generally understood as a type of matrix barcode, which was first designed in the year 1994 in Japan. Quick Response Code (QR Code) is generally a composition of black squares that are arranged in a square grid on a white background, and which can be read by an imaging device such as a camera. Data is kept within the QR code, which is extracted from the patterns of the image thereby.

Benefits of QR Code

Easy: QR Code is easy and reliable. The amount directly gets debited from the applicant’s account and gets credited to the beneficiary’s account in real-time itself. Customers can make a timely settlement and this acts as easy as cash. Installation of QR is not hectic and payment needs no big deal.

Quick: This is a real-time payment so one can make a payment right at any time they want. All they need to have is a smartphone that has a camera; internet and mobile banking app, or any payment based app – be that Esewa, Khalti, or any others. The payment will be there and then.

Promotion to Cashless Economy: At the time when the globe is heading towards the cashless transaction, QR transaction can be an effective tool and important element for the promotion of a cashless economy. This won’t be hectic, and if people get aware of it, it can be a supportive element for the promotion of a cashless economy.

Hassle-Free: It can also be possible to make payment by asking for payment details to the beneficiary, but QR code payment is hassle-free and one can make payment easily around as everything can be easily accessed thereby.

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How QR Code Works?

Even if the smartphone user comes across a QR code while reading a magazine, or anywhere online – they can directly scan the QR Code with their phone, and then it will automatically bring up a specific part of the mobile website and connect with the concerned detailing information.

If found in some supermarket or shop, the working mechanism is the same as the barcode at the supermarket. It is a machine scannable image that instantly is read through a smartphone camera. So, as soon as the smartphone scan the code, it will translate the information into something which can be easily understood by human beings. The detailed information would be acquired on the other end. If it is for digital payment, there will be account details kept within the black dots which will ultimately help to carter information thereby.

If you are confused about how to use QR codes in Nepal, you need to understand that this is not any challenging task and rather an easy task. All you need to have is a Mobile Banking app on your phone. After this, at the time of payment, if you see any board with a QR picture thereby, you need to open your mobile banking app and go to the QR Scan section. On major of Fonepay’s app – it is located in the top right corner thereby. On scanning, you will be guided to the payment details of the beneficiary. Proceed ahead, and then you can make payment thereby easily.

Security Issues related to QR Code Payment

Although QR Code transactions seem to be harmless, there are people with an evil mind for creating troubles. Cybercriminals can inject the phone with malware. This direct approach will not require anything else – but can track the credentials of users easily. There can be the next major risk if any personal information is directed to another website before payment. It has been noted that three major security issues are surrounding QR Code transactions – Malicious software, Phishing, and harmful websites.

But, we can always get safe out of those dangers if we install antivirus on our phone, or if we don’t visit unknown websites. It is also advisable not to scan every QR code in the market – which are not authentic and genuine.

Current Status of QR Code Payment in Nepal

Big cities have been using QR codes and this is getting popular. At the same time, QR Code payments have reached throughout Nepal across remote areas in Hills, Terai, and Mountains of Nepal too. This system has been practiced by small and medium-scale businesses throughout the country. It has also been practiced in social functions like weddings and also in Temples. Tal Barahi has QR payments. So today, department stores, petrol pumps, restaurants, grocery stores, and major areas where transactions are being done – are using QR Code System. A few days back, NMB Bank launched QR Code based event for Balkhu’s vegetable sellers. A month back, Governor himself made payment for vegetables via QR Code – All indicating QR Code is getting aggressive marks across the nation from big to small businesses.

Future of QR Code Payment System

It has been stated that QR codes can be the future of payment gateway in the United States. The same can apply to Nepal. It is easy, and user friendly which makes the entire payment flow relevant, easy and simple. There could be a day when QR Code-based payment would be implemented at a massive scale. Although, Cash can never be ignored, for digital-based payment – QR code has the potential as turning out to be the major gateway. But, we live in the age of technology – we never know something advanced than a QR code can be launched at any time.

[Mr. Dwaipayan Regmi is currently working as the Assistant Manager in Rastriya Banijya Bank]

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