RBI Set to Change India's Payments Picture with New QR Code Rules

QR code-based payments, where you point your phone at a sticker and see payment go through instantly, are thought of as the lowest cost option to encourage merchants to accept digital payments. There is no upfront cost to be paid, like in the case of a point-of-sale machine. The merchant discount rate charged is lower than other payment options. And now, after the Reserve Bank of India’s latest rules, the same QR code can be used across multiple payment applications. Last week, the RBI mandated a move towards interoperable QR codes. Bharat QR and UPI QR—the two interoperable codes available—will continue, any proprietary codes will need to be phased out by March 2022, and any new QR codes introduced will need to be accepted across payment options.