Paytm has introduced a QR code-based payment option in its mobile application. This feature will enable any shopkeeper or an auto driver with a Paytm account to receive payments by allowing wallet-holders to scan a pre-printed QR code using the app. The company will shortly announce the names of restaurants that will be accepting payments through QR codes.
A QR (Quick Response) code is a matrix bar code — a machine-readable label that contains information. In the case of the pre-printed QR codes, the only information it will contain is the Paytm account details of the merchants. After scanning the QR code, the buyer has to merely enter the payment amount and approve the payment.
On the addition of the new capability, Nitin Misra, Vice President – Payment Products, said, “the existing 10,000 merchants, who enable topping up of Paytm wallets with cash, will also be encouraged to accept QR code-based payments as a large number of these points are kirana shops. “Shortly, the company will also launch a merchant application that will give retailers a wider range of functionality in addition to generating dynamic QR codes that incorporate payment information”.
At present, Pizza Hut, KFC and Costa Coffee accept payments through the Paytm app. However, this method requires generation of a one-time password after the customer shares his mobile number. The QR code option will allow even basic service providers to carry a laminated QR code of their account and receive payment, even without a data connection. “They will receive a confirmation through SMS on their basic phone,” said Misra.