Bharat QR, launched in 2017, is a digital payment solution that allows you to pay by simply scanning a QR code with your smartphone. It eliminates the need for card-swipe machines at stores, making transactions seamless and secure. You can use Bharat QR across various sectors, including retail, fuel stations, and restaurants.
This interoperable system, developed by NPCI and major card networks like Visa and MasterCard, lets you pay using cards or UPI. There are no extra charges for making payments, and the process is quick and easy. For merchants, it reduces costs, as there’s no need for hardware, and payments go directly into their bank accounts.
Table of Contents
What is Bharat QR Code?
Bharat QR is a QR (Quick Response) code-based digital payment method that allows customers to scan the code using UPI apps to pay for purchases at merchant locations. Merchants can download the Bharat QR feature and enable it through their mobile banking app.
Additionally, Bharat QR was developed as part of the government’s broader efforts to push digital payment initiatives, which also include UPI, BHIM, and Aadhaar Pay.
How Does Bharat QR Code Work? A Step-by-Step Guide
STEP 1: Merchant Setup
Merchants generate a Bharat QR code through their bank or payment service provider and display it in their store, either digitally or in printed form, for customers to scan.
STEP 2: Customer Scanning
To make a payment, customers open their UPI-enabled app, select the scan option, and point their phone camera at the merchant’s Bharat QR code. This captures the payment details instantly.
STEP 3: Payment Authorization
After scanning the QR code, customers enter the payment amount (if required) and their UPI PIN to authorize the transaction, ensuring secure processing.
STEP 4: Funds Transfer
Once authorized, funds are instantly transferred from the customer’s bank account to the merchant’s account via UPI’s secure network.
STEP 5: Confirmation
Both the customer and merchant receive immediate confirmation of the payment through their respective apps, ensuring the transaction is successfully completed.
Bharat QR Code Charges
1. Bank Charges
Banks may impose fees for setting up or using Bharat QR services. The Merchant Discount Rate (MDR) is a primary charge which varies based on the type of transaction.
- For debit card transactions under ₹2,000, the MDR is typically 0.75%.
- For transactions over ₹2,000, the MDR increases to 1%.
- Credit card transactions usually carry a higher MDR, ranging from 2% to 4%, depending on the bank.
2. Payment Gateway Fees
Merchants may incur additional payment gateway fees when using Bharat QR. These fees are not universally standardized and can vary by service provider. However, many banks and payment gateways do not charge extra fees specifically for Bharat QR transactions, making it a cost-effective option for merchants.
3. Hardware Costs
Merchants may need to invest in hardware to facilitate Bharat QR transactions, such as QR code scanners or payment terminals. However, unlike traditional POS systems, Bharat QR primarily utilises printed QR codes, which reduces the need for expensive hardware. Merchants can simply display a QR code sticker at their locations, minimising upfront costs.
4. Transaction Fees
Transaction fees for Bharat QR payments can vary. While there are no direct charges to customers for making payments through Bharat QR, merchants are responsible for the MDR associated with each transaction. This fee structure means that while customers can enjoy a fee-free payment experience, merchants must account for these costs in their pricing strategies.
Who Can Apply for Bharat QR Code?
1. Merchants and Businesses
Retailers, small businesses, and service providers who want to accept digital payments can apply for a Bharat QR Code. This includes brick-and-mortar stores as well as e-commerce sellers who prefer a QR-based payment option. Bharat QR is beneficial for merchants who wish to offer their customers a cashless payment experience without the need for expensive PoS machines.
2. Freelancers and Self-employed Individuals
Freelancers, consultants, tutors, and other self-employed professionals can also apply for the Bharat QR Code. By using Bharat QR, they can accept payments directly into their bank accounts, making it easier to manage their earnings. It’s a flexible solution for professionals who operate without a physical storefront but still need to offer digital payment options to clients.
3. Individuals with UPI-Enabled Apps
Anyone with a UPI-enabled mobile banking app can use Bharat QR to make payments. This includes individuals from various demographics who wish to make cashless transactions conveniently. Bharat QR provides a simple and quick way for customers to pay merchants without the need for physical currency.
4. Banks
Participating banks play a crucial role in the Bharat QR ecosystem. They must support the Bharat QR network to issue QR codes and facilitate transactions. This allows their customers to access Bharat QR services, ensuring widespread usability and reliability.
5. Payment Service Providers
Organizations offering digital payment services can integrate Bharat QR into their platforms. By doing so, they enable their merchant clients to accept QR-based payments, broadening the payment options available to consumers and enhancing the overall digital payment landscape.
Eligibility Requirements to Apply for Bharat QR
To apply for the Bharat QR Code, you must have the following qualifications:
1. Merchant Registration
- Individual Business Entity: You must be a registered business entity, such as a sole proprietorship, partnership, or company.
- Valid Proof of Identity: Provide a government-issued ID (e.g., Aadhaar, PAN) to verify your identity.
2. Bank Account
- Existing Account with Participating Bank: You need to have a bank account with a bank that supports Bharat QR. Make sure to confirm your bank’s participation in the Bharat QR network.
- Availability of Necessary Bank Documents: Submit necessary bank documents, such as a canceled cheque or bank statement.
3. UPI Integration
- UPI-enabled App: Ensure that you have a UPI-enabled mobile banking application. This app will facilitate the generation and management of your Bharat QR code.
4. Business Details
- Business Information: Provide details about your business, including name, address, and type of services or products offered.
- GST Registration (if applicable): If your business is registered under GST, you may need to provide your GSTIN.
5. Compliance with Guidelines
- Adherence to Regulatory Guidelines: Agree to comply with the terms and conditions set forth by your bank and the Bharat QR network.
6. Technology Requirements
- Accessible Smartphone or Device: A smartphone or device capable of running the UPI-enabled app for generating and scanning QR codes.
7. Application Form
- Filled Application: Complete the application form provided by your bank or payment service provider for Bharat QR registration.
How to Generate Bharat QR Code through Bank or Payment Service Provider?
STEP 1: Contact Your Bank or Provider
Reach out to your bank or payment service provider that supports Bharat QR. Request information on how to apply for Bharat QR. Most banks will have dedicated services or a merchant relationship team to guide you through the process.
STEP 2: Provide Required Documents
Submit necessary documentation, including:
- Business registration details (e.g., GST number, if applicable)
- Identity proof (PAN, Aadhaar)
- Bank account information (canceled cheque or bank statement)
STEP 3: Approval and QR Code Generation
Once the documents are verified and the account is approved, the bank or provider will issue a unique Bharat QR code linked to your bank account. You will receive this via email or through their digital banking platform.
STEP 4: Display the QR Code
You can print the QR code and display it at your physical store or integrate it digitally (e.g., on an e-commerce site or mobile app). Customers can scan the code using their UPI-enabled apps to make payments, which are deposited directly into your bank account.
How to Generate Bharat QR Code Through Mobile Payment Apps/ UPI Apps?
STEP 1: Open Your UPI-enabled App
Launch a UPI-enabled app such as BHIM, Google Pay, Paytm, PhonePe, or your bank’s mobile app, all of which support Bharat QR on your supported device such as smartphone, laptop etc.
STEP 2: Navigate to the ‘QR Code’ or ‘Receive Payments’ Section
In your app, look for the option labeled “Generate QR Code” or “Receive Payments.” This is usually available in the main menu or within the payments section.
STEP 3: Generate the Bharat QR Code
Enter your payment details, and the app will instantly generate a Bharat QR code linked to your bank account or UPI ID. This code will be personalized to your account, ensuring that all payments are directed to you.
STEP 4: Share or Display the QR Code
You can print the generated QR code for display at your store or send it digitally to customers via messaging apps. Customers will scan the QR code with their own UPI apps to complete payments directly into your linked account.
How to Generate Bharat QR Code Through a Payment Gateway?
STEP 1: Select a Payment Gateway Provider
Choose a payment gateway that supports Bharat QR (e.g., Razorpay, PayU, Instamojo). Visit the provider’s website and sign up for their merchant services.
STEP 2: Complete Merchant Registration
During the sign-up process, you will need to submit:
- Business information (name, address, type of business)
- Identity verification (PAN, Aadhaar)
- Bank account details (canceled cheque or bank statement)
- Additional documents like GSTIN, if required
STEP 3: Integration and QR Code Setup
Once approved, the payment gateway will provide you with options for generating Bharat QR codes. You can integrate Bharat QR into your online store using plugins, API integrations, or a dashboard provided by the gateway.
STEP 4: Generate and Use the QR Code
You will have two options for generating QR codes:
- Static QR Code: Generate one code that customers can scan repeatedly for different transactions. Useful for small businesses or retail stores.
- Dynamic QR Code: Automatically generate unique QR codes for each transaction. This is ideal for e-commerce websites or businesses needing higher security.
Display the QR codes on your website, mobile app, or at the point of sale. Customers scan the QR code, and funds are directly transferred into your registered bank account.
How to Use Bharat QR Code in a Store?
STEP 1: Ensure You Have the Right Tools
Make sure you have a smartphone with an active data connection and a mobile payment app that supports Bharat QR (e.g., BHIM, Paytm, Google Pay).
STEP 2: Open Your Mobile Payment Application
Launch your mobile payment app and select the option to pay via QR code.
STEP 3: Scan the Merchant’s Bharat QR Code
Use your smartphone’s camera to scan the Bharat QR code displayed by the merchant. This could be on a printed card or a digital screen.
STEP 4: Enter or Confirm the Payment Amount
If the amount is not pre-filled, manually enter the payment amount. If the amount is already filled, verify its accuracy before proceeding.
STEP 5: Authorize the Payment Using Your PIN
Confirm the payment by entering your UPI PIN or using biometric authentication, depending on the app’s security settings.
STEP 6: Confirm Payment Success
You will receive a confirmation notification on your phone. Ensure the merchant also confirms that they’ve received the payment.
How to Use Bharat QR Code for Online Payments?
STEP 1: Open Your Mobile Payment App
Use your mobile payment app or the UPI section of your banking app that supports Bharat QR.
STEP 2: Navigate to Bill Payment Options
Go to the bill payment section or select the option to pay via QR code within the app.
STEP 3: Scan the QR Code for Bill Payment
Scan the Bharat QR code provided by the billing service or printed on your bill using your smartphone’s camera.
STEP 4: Verify the Bill Details and Payment Amount
Check the bill details and verify the payment amount. If any adjustments are needed, ensure they are correct before proceeding.
STEP 5: Authorize the Payment with Your PIN
Confirm the payment by entering your UPI PIN or using biometric authentication based on the app’s security setup.
STEP 6: Save the Payment Confirmation for Your Records
After completing the payment, save or screenshot the confirmation for your records. Wait for a confirmation message from the billing service to ensure the transaction is successful.
What are the Benefits of Using Bharat QR Code?
1. Cost-Effective Payment Solution
Bharat QR allows merchants to avoid the high costs of POS machines, cutting down on operational expenses. With no maintenance fees or transaction charges, businesses can save money and increase profits.
2. Instant Payment Processing
Payments made through Bharat QR are processed instantly via IMPS (Immediate Payment Service). This means funds are quickly transferred to the merchant’s account, improving cash flow and reducing customer wait times at checkout.
3. Improved Transaction Security
Bharat QR enhances security by not sharing customers’ card details with merchants. This reduces the risk of fraud, such as card skimming, and provides a safer payment experience for consumers.
4. Wide Compatibility Across Banks
Bharat QR works with multiple banks and supports various card types. Unlike other systems limited to specific cardholders, it is accessible to all users, making it easy for everyone to transact.
5. Seamless UPI Integration
Bharat QR integrates smoothly with UPI (Unified Payments Interface) and popular apps like BHIM. Users can pay using UPI, debit or credit cards, or digital wallets, offering flexibility in payment options.
6. Extensive Bank Support
Bharat QR is backed by a wide range of banks across India, including:
- Axis Bank
- Bandhan Bank
- Bank of Baroda
- Bank of India
- Canara Bank
- Central Bank of India
- City Union Bank
- CSB Bank
- Equitas Small Finance Bank
- Federal Bank
- Gujarat State Co-op Bank
- HDFC Bank
- ICICI Bank
- IDBI Bank
- IDFC Bank
- IndusInd Bank
- Karnataka Bank
- Karur Vysya Bank
- Lakshmi Vilas Bank
- Punjab National Bank
- RBL Bank
- Saraswat Bank
- Sodexo PPI
- South Indian Bank
- State Bank of India
- Thane Janata Sahakari Bank
- UCO Bank
- Union Bank of India
- YES Bank
- Vijaya Bank
- Corporation Bank
- DCB Bank
- Kotak Mahindra Bank
- Indian Bank
- United Bank of India
- Andhra Bank
- Dena Bank
- Allahabad Bank
Additionally, more banks are expected to join the Bharat QR network, making transactions easy and convenient for both customers and merchants.
7. Enhanced Security with Dynamic QR Codes
Merchants can create unique QR codes for each transaction, adding an extra layer of security. This approach minimizes the risk of fraud and makes the payment process smoother for everyone involved.
8. Significant Cost Savings
By eliminating PoS machines, Bharat QR reduces transaction costs for both merchants and customers. This makes it an ideal payment solution for small businesses looking to save on expenses.
9. Collaborative Development
Bharat QR was developed with the help of major payment networks like Visa, Mastercard, and NPCI. This collaboration ensures the system works seamlessly across different platforms, enhancing its reliability.
10. Leading-Edge Security Features
Bharat QR keeps payment information secure by not sharing it with merchants. This feature helps prevent risks like card skimming and identity theft, making it one of the safest digital payment methods available.
FAQs
1. What happens if a wrong transaction is made?
If a wrong transaction is made using the Bharat QR Code, you should immediately contact your bank or payment service provider to report the issue. Most banks have a dispute resolution process that allows you to file a claim for erroneous transactions.
2. Which payment methods are supported by Bharat QR Code?
Bharat QR Code supports debit and credit cards, as well as UPI payments. You can use it with mobile payment apps like BHIM, Paytm, Google Pay, and PhonePe.
3. Is Bharat QR safe?
Yes, Bharat QR is designed with security in mind. It uses encryption to protect transaction data and integrates with secure payment systems like UPI. However, to ensure maximum security, always use updated apps, verify the QR code before making payments, and keep your payment details confidential.
4. How can I get my Bharat QR Code?
To get your Bharat QR Code, you can either contact your bank or use mobile payment apps that support Bharat QR. Log in to your bank’s portal or app or the payment app, and follow the instructions to generate your QR code. You’ll need an active bank account and may need to provide certain documents.
5. Is Bharat QR different from UPI?
Bharat QR and UPI are related but serve different purposes. Bharat QR is a standard for QR code-based payments that can be used with various payment methods, including UPI. UPI (Unified Payments Interface) is a payment system that facilitates instant bank-to-bank transfers using a mobile app.
6. Which banks and payment apps support Bharat QR Code payments?
Most major banks and payment apps in India support Bharat QR Code payments. This includes banks like SBI, HDFC, ICICI, and Axis Bank, as well as payment apps such as BHIM, Paytm, Google Pay, and PhonePe.
7. What type of transactions can I use the Bharat QR code for?
Bharat QR Code can be used for various types of transactions, including retail payments, service payments, and bill payments. It is suitable for in-store purchases, online bill settlements, and peer-to-peer transfers, making it a versatile tool for both merchants and individuals.
8. Can Bharat QR codes be used for both online and offline transactions?
Yes, Bharat QR codes can be used for both online and offline transactions. In-store payments are typically made by scanning the QR code displayed at the merchant’s location, while online transactions can be done by scanning a QR code provided by the billing service.
