Vijaya Bank, a Bangalore-based public sector bank, will be integrating the BharatQR into its VPayQwik wallet. The bank wallet was developed in partnership with Toronto-based First Global Data, a fintech services company. First Global Data announced that VPayQwik was one of the few mobile wallets in India that currently has access to BharatQR, and that the wallet will now be accepted at retail locations across India.
VPayQwik’s Android application on the Play Store also says that it has a “New look and Feel with QR scan” and that customers will be able to “Scan to Pay at store”. Calls made to Vijaya Bank’s internet banking division were not answered.
BharatQR is a QR code network for payments built by card networks Visa, MasterCard and RuPay. The government floated the idea for an inter-operable QR code network in December 2016 following demonetization of Rs 500 and Rs 1,000 notes. However, wallet (which are not issued by a bank) and the unified payments interface (UPI) are currently excluded from this payment system.
So far, the following banks are operationally ready to deploy BharatQR: Axis Bank, Bank of Baroda, Bank of India, Citi Union Bank, DCB, Karur Vysya Bank, HDFC Bank, ICICI Bank, IDBI Bank, RBL Bank, State Bank of India, Union Bank of India, and Yes Bank.
Last week, the Reserve Bank of India (RBI) proposed differentiated debit card merchant discount rate (MDR) between infrastructure involving physical terminals (POS machines, mPOS etc) and digital acceptance infrastructure models (such as QR codes). QR codes payment through cards would attract a fee of 0.3% to 0.85% per transaction for merchants. MDR is an inter-bank exchange fee that banks charge for enabling digital transactions.
Currently, MasterCard and Visa two solutions called Masterpass and mVisa respectively to enable QR code payments. RuPay still hasn’t developed a QR code payment system yet. Essentially both the applications link a customer’s credit, debit, and virtual prepaid card.