Many payment methods are used by buyers and sellers like internet banking, credit card and debit card swipe, cash, etc. But UPI is regarded as the easiest and preferred payment method for online or physical shopping. Even in UPI apps, there are multiple payment methods possible. Users can send payment to a recipient through mobile number, bank account number, and QR code. Among these, the UPI QR code is regarded as the safest and error-free method of payment as there is no typing of numbers involved, and just through a scan, the transaction can be completed within seconds. Let’s discuss what UPI QR codes are and how to accept them.
What are UPI QR Codes?
QR or Quick Response is essentially a two-dimensional barcode containing contact details, account information, and payment links. The QR image specifically has machine-readable code created through black and white boxes. UPI QR code includes commands related to payment transactions. For example, a merchant can generate QR codes of his shop containing VPA (virtual payment address) and other details needed to make or receive a payment.
How does UPI QR code work?
At first glance, you might think that UPI QR codes and barcode scanners work similarly. Although they have similarities, there is one key difference. UPI QR codes can be scanned from paper as well as screens. To use the UPI QR code, you need a smartphone with a UPI app installed. When you scan the QR code displayed at the merchant’s end, you will be taken to a secure payment screen that includes the recipient’s name and a part of the bank account number. Once you confirm the code is right, you can send payments after a purchase, which will be transferred to the recipient’s bank account.
How to Set up UPI QR Code for Accepting and Sending Payment?
As a merchant, if you are using a swipe card machine, it can increase overhead costs as it is expensive hardware and involves monthly contractor fees and minimum deposits. With UPI QR codes setting up a payment solution is a cakewalk. All you have to do is download a mobile app and create a QR code that can send and receive payments from a single bank account. Generally, An UPI QR code is printed on a sheet and displayed at the cash counter or owner’s desk. After making a purchase, the buyer will use one of the UPI apps and scan the displayed QR code. It will directly connect to the merchant’s account, where you can enter the payment amount and transfer it right away.
There are two types of UPI QR codes, static and dynamic. The static QR code contains the payment URL placed inside the code. As these are static, the contents cannot be altered and tracked. These are used for making simple payments or both offline and online purchases. The buyer has to scan the code, enter the purchase amount, and transfer it after confirmation from the merchant. Generally, shops, restaurants, hardware stores, etc., use static UPI QR code payment methods.
In the dynamic UPI QR code, the payment experience is more secure as it offers password protection, scan analysis, etc. Here the merchant can keep track of how many transactions have taken place and the devices used for scanning. The dynamic QR codes includes merchant details and purchase amount. The customer has to scan and send the payment without manually entering any details.
In the coming years, most payment transactions will take place through the UPI QR code payment method, and hence it is crucial to understand the nuances of how it works. The above pointers will shed light on how the UPI QR code is created and facilitate payment acceptance and transfer.
