Some of the payment aggregators or third party resellers of mobile recharges and payment of utility bills online like Paytm and Mobiquick also have their own virtual wallets enabled through their Apps using which customers can make payments against offline and online purchases. These resellers also enable online booking of movie tickets, bus tickets, payment of insurance and loan related EMI’s through this wallet. The best part is that customers, who are unable to access online payment methods by using their credit/debit cards or Netbanking, can use this virtual wallet to make payments at all outlets that accept the particular reseller’s wallet service.
To use the virtual wallet offline, the customer needs to download the reseller’s App on his smart phone and register on the App. He needs to then transfer some money into this wallet from his bank account so that he can use the wallet at various stores. Though it is vital that the consumer’s hand phone has internet access to carry out the registration and transferring of money, some of the resellers provide option of offline payment to use the wallet.
The merchant too needs to register online at the reseller site for his QR code and once done, take a printout of the code and display it at a convenient position in his retail space.
When the customer buys products from this merchant, in order to make payment she needs to scan the QR code or the Quick Response code of the merchant with his smart phone camera from the reseller’s App. On successful scanning, the customer needs to add the value of the invoice and click the pay button for instant debit from his wallet account.
Using the OR code enables easy and convenient payment of bills for the customer. It is also one of the most secured methods of settling bills as the entire backend is approved and authorized by the Reserve Bank of India and other necessary licenses are procured by the payment aggregator.
For the merchant too, it is an affordable method which is why even local stores, auto rickshaws , tea stall vendors, restaurants, petrol pumps etc. willingly accept this mode of payment. They enjoy facilities like –easy registration and immediate sign-up; automated transfer of money into their account the day after the transaction; no hassle of dealing in cash and keeping changes, easy integration with the point-of-sale system, etc. Reconciliations, payouts and transactions can be easily accessed by the merchant through his mobile.
The QR code is a matrix made up of white and black squares. It can store huge set of information in a safely coded and a secure manner which is why there is a growing confidence amongst consumers and merchants on the applicability of this coding system in financial transactions. The QR code is already being used by marketing departments of different brands to pass on brand and product related information to their target market; introduce incentive and promotional campaigns and even get feedback on their product and services from customers.