Small Businesses struggle to scale up their operations into a diversified market. A significant difficulty for them is that they do not have a reliable payment-receiving solution at an affordable cost. With the increasing culture of cashless payments, Bharat QR Code was introduced by the government of India to back the ecosystem of online transactions like UPI (Unified Payment Interface).
Did You Know ? Bharat QR was introduced on 20th February 2017 by National Payment Corporation of India.
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Why is Bharat QR code Developed?
UPI (Unified Payment Interface) was introduced in 2016 by NPCI to support the idea of a cashless economy. It became an instant hit since it was easy to use with no cost by either party involved in the transaction, either payer or receiver. However, UPI was struggling with commercial dealings, especially with small businesses. Bharat QR Code was then developed and introduced by NPCI to fill that gap. It can run on POS machines with QR attached on the top. One can easily make the payment by scanning the QR code.
How to Use Bharat QR Code for receiving payments?
Bharat QR is a person to Merchant (P2M) digital payment solution through which sellers can accept payments from their customers. You only need a smartphone with good internet connectivity to receive payments through the Bharat QR code. Here are a few easy steps to get started -
Step 1: Download BHIM (Bharat Interface for Money) app through Google play or the App store on your Smartphone. NPCI also develops the BHIM app to back the Bharat QR Code ecosystem
Step 2: Link your Business Bank account with the BHIM app
Step 3: Generate a unique Bharat QR Code from the BHIM app. You can also generate a Dynamic QR code for a specific amount.
Step 4: Print the QR Code and stick it to the cash counter or other appropriate place.
Step 5: Customers can make the payment by scanning the QR Code.
Bharat QR is a payment solutions interface for merchants. This platform includes the Phonepe Business app, Google pays for Business, Paytm for Business, Payu now, Rozer pay, HDFC Merchant payments Solutions, SBI Merchant Payment Solutions, etc., by following similar steps as mentioned above.
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What Are The Advantages of Bharat QR Code for small business?
Few advantages that a small business can get as following:
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Secure
Previously, Cashless payments relied heavily on the PoS or point of sale system. They were run by private players in the market and often prone to data mismanagement and considered less secure. Apart from this, The PoS or Point of sale system involves sharing sensitive card data like ATM Pin and other details. Any unauthorized person could capture it, and One may lose all of their savings.
Bharat QR Code was developed by the National Payment Corporation of India (NPCI) on a secure platform of multiple authentications. The payment passes through at least 5 parties like the customer UPI app, the customer’s banker, NPCI server, and Merchant’s app and finally settled into the merchant Bank account.
The existing POS system would not even provide such a security system. Thus, a secure payment solution allows your business to work seamlessly with no risk of money being lost or data leakages.
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Free of Cost
With a very high economic divide in India, Small businesses usually do not have much capital to invest in expensive software solutions. Popular POS Systems like VISA or Mastercard charge almost 1 to 1.5 % of transaction costs from the Merchant and the payer combined.
Bharat QR Code is a free of cost payment solution for both merchants and payers. With a secure and cost-free solution, you are all set to adopt Bharat QR Code for your business.
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Cashless Economy
Nobody carries cash all the time with them. Being Cashless also implies being free from petty cash thefts by employees. With Bharat QR Code, you can go cashless in no time. Just follow the steps mentioned above to generate Bharat QR Code and start receiving payments directly in your bank account with no hassles in maintaining cash. It especially becomes easy now since, from your supplier to your customers, They all receive or pay through UPI or other Online Payment Solutions.
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Tax Benefits
There is an end number of tax benefits that you can claim from receiving cashless payments like the Bharat QR Code. Under section 44AD or 44AE, the presumptive income is reduced to 6 %. From 8 % if 95% of your cash receipts and payments are received and made in any mode other than Cashless cash. Apart from the above, you can claim certain deductions from Chapter 6 of The Income Tax Act only if payment is made through a cashless mode.
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Immediate Settlement
One of the most distinctive features of the Bharat QR payment solution from the existing or previous merchant payment solutions is that the money is settled immediately into the seller's bank account without any cost involved in the process. It gives an edge to the Bharat QR Code over other payment solutions.
Apart from immediate settlement, the seller can quickly generate the statements of transactions that settled into their bank account and can look into any discrepancy. It can help small businesses to make appropriate decisions immediately. Such a system hinders the growth of businesses. So, You, as a business owner, can benefit from using this platform for on-time settlements. Having an immediate settlement system helps your business have a good balance of working capital. Thus, You won't be needed to open an overdraft account with the bank.
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Push-back Transaction
Bharat QR code provides one with quick push based transactions. All you need to do is scan, enter the amount, put in a security code and payment is successful.
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Conclusion
Bharat QR Code is one of the most remarkable innovations made by NPCI that shapes the modern economy of India. No one had expected such a success of the Bharat QR Code. Even in the most remote locations of India where there is internet connectivity, sellers accept payment on the Bharat QR Code. If you are still evaluating the use of the Bharat QR Code in your business, go ahead and give it a shot, it's a tried and tested solution and secure.
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