We have been saying it for a long time, and it is happening now!
Digital or Cashless payments are making their way into offline world and Paytm is leading the charge.
Paytm announced today that they are bringing QR code based cashless payments that can be utilized by any offline shopkeeper or service provider to accept digital payments.
This essentially means that Paytm is now open to anyone in offline world to start accepting digital payments immediately.
It’s exciting to see how simple basic technology can literally change the way we conduct business in offline world!
Here is how it works
QR Codes have been around for a very long time – they are essentially similar to bar codes, but can store larger machine readable information like URL’s, name, address, numbers etc.
Merchant who needs to accept payments will have QR codes that will contain information in regards to his Paytm account details. Merchant has to simply print these QR Codes and stick it in his establishment.
The QR code option will allow basic service providers such as kirana stores, auto-rickshaws, fast food joints and others to carry a laminated QR code of their account and receive payment even without a data connection.
Any person who wants to make payment, can simply scan Merchant’s QR code and make payment. Once the payment is made, the merchant will receive a transaction confirmation through SMS even on a basic phone.
Apart from this, Merchants can also generate dynamic QR codes on the fly, which will contain the amount to be paid as well, in addition to merchant’s Paytm details. In this case, the buyer has to simply authorize the payment!
Currently, Paytm app has payments enabled for the likes of Pizza Hut, KFC, Costa Coffee and many others. Under the present method a one-time password is generated after the customer’s mobile number is received. The implementation of QR Code aims to expand and offer this facility to any merchants that will accept payments through QR codes.
The Future of Offline Payments
We have said this earlier – Digital Wallets are on their way to replace Physical wallets.
Acceptance of digital payments in offline world has very many advantages to buyers as well as merchants – There is no need to handle or have physical cash. All payments can be done through mobile. Buyers don’t have to worry about carrying change with them which is a constant issue with cash payments. Also, with digital payments, buyers and merchants can easily track and account for all of their transactions.
From Merchant’s perspective, it opens up a whole new world of Digital payments. With solution that Paytm is offering, anyone from an Handyman to a Rickshaw driver to a Kirana store can start accepting Digital payments.
While we are just getting started with Digital payments revolution, we foresee that digital payments will dominate and overtake cash transactions a few years from now!
What do you think?[Source : Trak ]