PROMOTING DIGITAL

PAYMENTS
 Benefits of Digital Payments

• Convenient to use
• Anytime, Anywhere, Any mode
• Secure transactions
• Facilitate financial inclusion
• Incentive, cashback, offers and promotional
schemes on digital payments
• No fear of losing cash or getting fake currency
• No need to handle cash
 Modes of Digital Payment
1. Bharat QR Code(BHIM)
2. BHIM Aadhar
3. POS Machine
4. Bharat QR of respective banks.
 1. Bharat QR Code (BHIM)

• What is QR Code? QR code stands for Quick Response Code designed

specially to contain information about the thing on which it is placed.
• It might be used as a sticker on a product which contains the details of
it.
• The QR code can be printed on a placard at outlets for customer to scan
and pay.
• QR code is very useful for small merchants who find it tough to invest
in point-of-sale terminals for card payments. For those merchants,
Bharat QR is an asset-light and cheap payment solution.
• There is no need to invest on a terminal hardware like PoS Machine, the
merchant just need a Smartphone and a QR code printed sticker to
accept digital payments .
• There is wallet system in Paytm, mobikwik etc. and one is required to
keep money in wallet but there is no wallet system in this app. Hence
this is real time app like a debit card which directly operate your
account.

Contd...... .
 More about Bharat QR Code (BHIM)
• To install BHIM- MAKING INDIA CASHLESS app, only an android
based Mobile set with internet facility is required.
• Mobile number linked with bank account along with debit card is
necessary.
• This app is charge-free for both merchant and customer.
• It is independent, therefore, the same app can be used to link
account of any bank i.e. SBI, HDFC, ICICI, PNB etc.
• As it’s a mobile based app, there is no need to fill any type of paper
forms to be submitted to the bank or anywhere.
• It’s a UPI (Unified payment Interface) based app, through which
payment can be sent as well as received.
• The other Bharat Quick Response code apps like paytm are
chargeable.
• As it has been introduced by the GOI this is secure as compared to
other privately launched apps.
Steps to install Bharat QR
Code (BHIM)
Step 1
•Open your mobile phone
, go to Play store and type
BHIM-MAKING INDIA
CASHLESS.
•Click install, and App
would start download . It
will take 1-2 minutes
according to the speed of
the net.
Step 2
• After installation, your
phone screen would
show the picture as in the
slide.
• Click OPEN
Step 3
While opening app, you
can select any language of
your choice.
Select language and click
button ‘next’
Step 4
•The app asks to verify
your mobile number,
kindly select the
registered mobile no.
which is linked to your
bank account.
•Click button NEXT
Step 5
•A message would
appear on the screen that
mobile number has been
verified as shown in the
slide.
Step 6
• Once your mobile
number verified, the app
will ask you to set any
passcode as per your
choice to access the app.
Step 7
• Message would appear
on the screen accepting
the passcode successfully.
Step 8
• Now select your bank in
which your account is in
operation .
• Then click the button
NEXT
Step 9
• Now screen would
display your bank
account details which is
linked with your
registered mobile no.
Step 10
• On clicking the bank
account number the
system will ask you to
set UPI pin.
•Then you have to click on
SET UPI PIN.
Step 11
• Now the system will ask
you to enter the last six
digits of your Debit card
along with date of validity
of your registered
account number.
• Enter last six digits of
debit card and its date of
validity.
• Click on √ button as
displayed.
Step 12
• At this moment you
have got the OTP on your
mobile.
•After enter your OTP set
your UPI pin of your
choice ( any six digits) .
•Click √ button.
Congratulations
• You have already taken
12 steps and no more
step is required to be
taken.
• Your app is ready to
operate showing 3
different options: send/
request / scan and pay.
Now you are able to send money by entering the name, mobile no., aadhar
no. and requisite amount to already saved contacts and new one by
entering account no and branch IFSC code.
Use of app as merchant
• If you want the app to be
used as merchant the
screen has provision to
enter the option by
clicking on the three dots
displayed on extreme
right side of the screen.
•After clicking the dotes
the screen would display
multiple choices. You
would have to opt for 2nd
option i.e. “I am a
merchant”
Filling of Merchant
details
•Now fill the business
details like name of
Business/contact no /
email id/merchant
category/ merchant
address/ linked account
as displayed on the
screen.
• After filling the
merchant details the
system will save the same
in your profile.
•Now the app will
generate the QR code for
your business and it will
be shown in your profile
account.
• You can download this
QR code and print a
placard and display the
same in your shop so that
customers can scan your
code and make the
payments
•The QR code can also be
shared through email/
whatsapp/ any other
messenger service to
•The app also provides
you the option of change
of account number.
•For this purpose first go
to main screen, then click
on the dots on extreme
right. And you would find
option of change of
account.
• In this way you can
check your bank balance.
also
 2.BHIM Aadhar
• BHIM AADHAAR is a digital payments acceptance solution which
enables Merchant to accept payments using his Android based
smart phone and fingerprint reader from customers having aadhar
seeded accounts.
 MERCHANT REQUIREMENTS
• Aadhar seeded account with the Bank.
• Certified Biometric reader with Micro USB connector.
• Android Smart Phone Version 4.2 or higher with internet
connectivity and OTG support for connecting biometric device.
 STEPS FOR INSTALLATION
• Go to play store of your smart phone and search for Bhim aadhaar.
• Start installation.
• After the completion of installation open the application.
• Please select Merchant type ( if your Aadhar No. is link with your Bank
account only then select self registration )
• Registration process for Merchant’s can be completed through Bank
also.
CONNECT THE OTG CABLE WITH OUR PHONE
PUT YOUR AADHAR NUMBER FOR REGISTRATION
SET YOUR MPIN
 Limitations of BHIM Aadhar &
BHARAT QR Code (BHIM)
• For Bharat QR Code (Bhim),Maximum Rs. 10000 per transaction
with a cap of Rs. 20000/- per day can be received or transferred
without any charges. Hence it is very useful for small merchants.
• BHIM Aadhar: For customers, maximum Rs. 2000 per transaction
with a cap of Rs. 5000/- per day can be received or transferred
without any charges. For merchants, Rs. 2000 per transaction with
a cap of Rs. 25000/- per day and Rs. 100000/- per month can be
transacted. Hence, it is very useful for small merchants.
• For BHIM Aadhar app one has to arrange biometric device ( costing
around Rs.2000) but this amount can be recouped from the
incentives of the scheme.
• The merchants expecting transactions more than 20000 per day
would have to install POS machines or BHARAT QR of respective
banks(chargeable).
 POS Machine
• POINT OF SALE :- It is the point at which a customer makes a payment
to the merchant in exchange for goods or services. At the point of sale
the retailer would calculate the amount owed by the customer and
provide options for the customer to make payment (through Credit card
or debit card). The machine issue a receipt for the transaction.
 BENEFITS OF USING POINT OF
SALE
• A good POS system will cut down on or even eliminate any “human
error ” that occur in processing of transactions., cutting down on
employee error and making communication between different parts of
the business much easier.
• This computerized system allows business owners to track sales, cash
flow, inventory and can help simplify your bookkeeping enormously.
• Reconciliation of accounts becomes easy.
• Eliminate the Security hazards like robbery, dishonesty of accountant
etc.
 limitations
• With a point of sale system, you are relying on the software that runs
the network hence software requires regular updation.
• Charges of setting –up and maintenance have to bear to the merchant.
• Further merchant has to pay some bank charges on the transactions as
shown on the next slide .
 Bank Charges(POS)
SBI HDFC ICICI PNB
Installation cost is Installation cost is Setup and Installation cost is
nil. Rental of Rs. nil. Installation fees for nil.
220/- + GST per Annual rental for POS 1st year is Rs. 6000/- Monthly rental of Rs.
month is charged. machine is Rs. + GST. For 2nd year, its 500/- + GST is
2400/- + GST. Rs. 9000/- + GST. For charged.
3rd year its Rs.
12000/- + GST.
Thereafter, it is Rs.
590/- + GST per
month.
Up to 2000 = Up to 1000 Up to 1000 Up to 1000=
.75%+18%GST =.25%+18%GST =.25%+18%GST .25%+18%GST
More than 2000 = 1000 to 2000= 1000 to 2000= 1000 to 2000=
1%+18%GST .50%+18%GST .50%+18%GST .50%+18% GST
More than More than 2000= More than 2000=
2000=1%+18%GST 1%+18%GST 1%+18%GST
 Bharat QR
• This is the government of India sponsored App used by various
banks for the digital transactions by levying charges on the
transactions.
• The consumer after buying an article will need to open his bank’s
mobile banking application, put the pin number of his debt card,
switch on the camera, scan the QR code, and pay instantly to the
merchant’s account.
• The only thing that the customers need to do is to map the bank’s
debit card with that mobile banking application to ensure his
identity/ recognition.
• The process for a merchant for Bharat QR acceptance is same as is
in case of the other PoS terminals. Merchant can contact their
nearest bank branch for Bharat QR.
• Merchants will be assigned a unique Merchant ID and Terminal ID.
 More about Bharat QR Code
• Based on MID, TID, Bharat QR ID etc. a QR (Quick Response) code will
be generated.
• QR code and a numeric code (PAN No) will be displayed at the billing counter.
• Now merchants need to download Bharat QR merchant app on their
smartphone.
• You need to log in your account (Bank will provide credential)
• The RBI has instructed the payment companies to develop the solution and then
pass it to bank which are expected to hand over printed QR code to merchant
who are current account holders with the bank.
• Bharat QR is a matrix of barcodes that has been developed by leading payment
companies of the country – Visa, Mastercard, National Payments Corporation of
India (NPCI), and American Express – to develop a complete digital payments
Infrastructure at retail merchant outlets.
• Limitation:-Merchant has to pay some bank charges on
the transactions as shown on the next slide .
 Bank Charges(Bharat QR)
SBI HDFC ICICI PNB
Installation cost is Installation cost is Installation cost is Installation cost is
nil. nil. Rs. 1250/- + GST. nil.
Monthly rental is
Rs. 75/- + GST.
Up to 2000 = Up to 1000 Up to 1000 UUp to 1000
.65%+18%GST =.25%+18%GST =.25%+18%GST =.25%+18%GST

More than 2000 = 1000 to 2000= 1000 to 2000= 1000 to 2000=

.90%+18%GST .50%+18%GST .50%+18%GST .50%+18%GST

More than 2000 = More than 2000= More than 2000=

1%+18%GST .75%+18%GST 1%+18%GST
Thanks