India plans mandatory QR code payments via UPI at shops

QR code-based payments via UPI may be made compulsory in Indian shops in the near future.

The government plans to make it mandatory for establishments beyond a certain threshold to offer the digital payment tool, according to a report by The Times of India.

This is expected to help shopkeepers get GST benefits more conveniently and promote a practice of cashless payment.

The goal is to endorse a “behavioural change” and sources said countries like China have gained immensely by promoting similar digital payment systems. Soon, QR codes may be introduced on invoices as well.

Consumers love QR code payment apparently because it helps them bypass debit and credit cards. As explained by a LinkedIn article on May 9, businesses must embrace a cashless future' as one of the biggest advantages is the payment can be immediately verified.

Cashless transactions increase customer satisfaction. At the same time, it easily records useful information related to the products customers are buying. Subsequently, the data can help businesses serve customers in a better way.

WeChat Pay and Alipay popularised QR code payments in China. Soon, other markets in Asia started embracing it. Singapore made history in September 2018 by introducing SGQR. Consumers and merchants in the country can use the universal QR code system for cashless payments across 27 services.

According to The Straits Times, Myanmar is now working on a similar system. Myanmar Payment Union (MPU) CEO Zaw Lin Htut said earlier in April that digital payment systems in the country would lead to a “major impact on our financial services sector.”

"The QR code payment technology is the best way to make easier payment and a convenient way to access the financial services for the people in Myanmar," he said.

ASEAN countries have seen “exponential growth in consumer adoption”, Payments Journal reported.

Back home in India, the GST Council gave the green-light to the proposal just before the elections. Now, the National Payments Corporation of India (NPCI) is officially working on making it a reality.