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 send or receive payments. •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.