The digital payment feature ‘Scan to Pay’ has been around for a few years but lately has garnered a lot of popularity, especially during the Covid-19 pandemic. The government of India is making a solid case for a cashless economy, and this move has paved the way for digital payments to become the default payment method. There are many ways to carry out digital payments like credit card and debit card swipe, internet net banking, and UPI transactions. Out of all these, UPI transactions are the easiest and fastest way to make digital payments, especially using QR code scan to pay. Let’s discuss how scan and pay are facilitating digital payments for both buyers and sellers.
What is Scan to Pay?
It is a smartphone-based payment option that allows fund transfer to the recipient account by scanning a QR (Quick Response) code through a mobile app that supports it. This scan to pay feature can be used to make digital payments at e-commerce websites, fuel pay, grocery purchase, merchant outlets, etc. For customers using UPI and other QR scan apps for digital payments, a QR code acts as a virtual debit card and performs the transactions.
How to Use Scan to pay?
As a customer, if you wish to use the scan to pay feature, a smartphone, an active bank account, and a UPI app with a QR code facility must be available. All the banks have tie-ups with UPI apps, and hence we can easily integrate our bank account with the VPA (Virtual Payment Address) of the UPI. As a merchant, you can link the bank account with the UPI app and create a QR code (static or dynamic).
A static QR code can be printed and displayed on the payment counter. After making a purchase, the customers can scan the static QR code through their UPI app. This step will enable the merchant account to be displayed on the recipient page of the UPI app. The customer will enter the exact amount to be paid for the purchase. Finally, the amount will be directly deposited to the merchant’s bank account after clicking on send and entering the PIN. In dynamic QR code, the merchant will enable a new QR code for each transaction. Here the customer will not enter the amount as it is already pre-set in the QR code. After scanning the QR code, the customer will enter the PIN and make the payment.
Benefits of Scan to pay?
1. Cost Savings
Previously, merchants had to install swiping machines or cash counters and keep an employee specifically for cash collection or swiping the debit and debit card. With scan to pay using QR code, all these overhead costs can be eliminated. The customers can scan the QR code at the counter and make immediate payments through their UPI apps.
2. Secure Payment Method
The scan to pay option is encrypted end-to-end and offers excellent security to both merchants and customers. The customer doesn’t have to type mobile numbers or bank account numbers, which often go wrong. With QR code Scan, the payment gateway directly connects to the VPA of the recipient, and the transaction can be performed without any errors. Also, the apps are fully encrypted and need a PIN to operate, and hence there is no room for data breaches or hacking of any sort.
3. Promotions & Loyalty
To promote scan to pay QR code payments, the government has introduced GST benefits, including cash back for making payments through QR codes. Also, many retailers can provide information like new offers, discounts, new product launches, ratings, etc., on the UPI payment screen of the customer during the scan to pay transactions.
Scan to pay has a lot of advantages when used for making digital payments in a fast-moving world and customers seeking a seamless experience when it comes to purchasing products without spending a lot of time or standing in a queue. Therefore, the scan and pay QR code payment feature is a boon and must be used in all online transactions.