Smart QR: Bringing interoperability in the digital payment

NepalKhoj Report 31 Dec, 2020

The coronavirus pandemic has been a roller-coaster ride for business enterprises. The number of customers dropped and subsequently lockdown was imposed. With the fear of contagion, people have been going cashless and shifting to digital modes of payment. Covid-19 pushed both merchants and customers beyond their comfort zones in terms of adopting new technology.

Innovation in digital payment has made people switch to smart options including QR through their smartphones. The use of QR code has been rapidly increasing for purposes including storing product information, accessing media or network and customers and merchant paying and receiving payment by scanning QR code. According to ICT experts, Quick Response (QR) codes are likely to surpass the traditional form of payment in shortest period of time.

With this growing trend, Smart Choice Technologies (SCT) has started to operate QR Code payment platform in the brand of Smart QR. Smart QR is a QR Code Payment Platform for different banks, financial institutions and Payment Service Providers of Nepal.

What is QR code?

QR code is a two dimensional bar code and it is an advanced product of bar code. It is an image with three large positioning black boxes. QR barcode differs in physical sizes and can be used to encode any data including URL, and business cards.

It is a contactless payment that is done by scanning the QR code using any mobile banking application or digital wallet. QR code avoids the use of expensive point of sale machines and cards.

How Smart QR works?

The merchants need to download “Smart QR Merchant” app from the Google Play Store. (Also, App Store in IOS). The merchant can manage all their transactions from the same app. The merchant can also transfer their amount to their bank account from their primary account. In case, any second person uses the same account, they won’t be able to transfer the received payment in the bank account. For example: If a store owner using his ‘Smart QR Merchant’ app has to leave the store for some days, his staff can use his account. However, as the staff will do a secondary login, he/she will be able to receive money from customer, but will not be able to transfer the money to the bank account. Also, the QR code changes every time when the amount changes.

The registration will be done on the basis of the mobile number. The app has two-factor authentication system and security. First is the OTP, which can only be received in the respective number and another is user name and password which can be logged in only in the device which the user have been using. For an instance: if the user leaves his/her device somewhere, and want to install the app in another device, they will not be able to login in the other device until they don’t log out in the previous device.

Bringing interoperability in the digital payment

The explosive growth of smartphone penetration has been further fuelling the growth of QR code usage. It can be predicted that these codes will have significant roles in shifting the customer behavior in payment. However, the value of technology can be fully utilized only when it is inter-operable.

“However, in Nepal, though various banks and PSP are adopting QRC methods of payment, the system is not inter-operable between the solutions provider,” adds Hari Aryal, Assistant Manager (IT).

The interoperable QR code makes it easier to make payments, no matter what app a person is using. For example: if you are using IME Pay and the merchant has an account in Prabhu Pay, you can complete the payment transaction through the app you use by scanning the interoperable QR code.

“As a solution, we have come up with Smart QR which provides QR Code Payment Switching, Unified Merchant Management System, Issuance of Unified EMVCO standard QR codes which will provide inter-operability among PSP and financial institution.”

Beginning with a discount offer

The Smart QR has offered a discount up to 15 percent discount for the users.

The wallet users can take benefits from this offer while transacting from department stores and online stores including Salesberry, Daily Grocery, NEWmart, Gyapu, Muncha and Infistore.