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Government looks into QR Code-based payment option using UPI for stores

Published
today May 13, 2019
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The Indian government could soon mandate a QR code-based payments option that would use a united payments interface in stores across the country and would be eligible for goods and services tax benefits.

The government hopes to increase digital payments though the use of QR codes


The government is looking for ways to promote digital payments as the preferred payment option in brick-and-mortar stores, TNN reported. As part of this, the government is looking to mandate a QR code-based payments option which was already approved by the GST Council before the current election got underway. 

The details of the payments mechanism are currently being explored by the National Payments Corporation of India which will also launch the feature pan-India. The plan is to make it mandatory for stores over a certain threshold to facilitate QR code payments for business to customer transactions, TNN reported sources said.

“We are looking at incentives for both, the shopkeeper or the restaurant owner as well as consumers,” a government official told the Times of India. 

The government is looking into increasing digital payments as they are easier to track than cash payments and this in turn makes GST evasion harder. However, whilst digital payments are increasing in metros, many rural shoppers remain offline and so implementing the scheme in non-metro areas could prove challenging. 


 

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