BackOxigen plans to launch single QR code to achieve interoperability with banks
Using the QR code, a merchant will be able to accept payments from Oxigen, Visa, MasterCard or Rupay users
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New Delhi: Oxigen services Pvt Ltd is planning to launch a single Quick Response (QR) code between Visa, MasterCard, Rupay and itself by the first week of January, with the aim of achieving interoperability with banks.
The QR code will be deployed in 50,000 to 1 lakh outlets across 50 major towns in India. Using the QR code, a merchant will be able to accept payments from Oxigen, Visa, MasterCard or Rupay users. There will be no need for separate QR codes for different entities.
Also, any person with any wallet other than Oxigen can also avail this facility using credit/debit cards from any of the above mentioned payment service providers.
“Interoperability between the different players is essential so that there is some standardisation on how things will operate," said Sunil Kulkarni, deputy managing director at Oxigen.
Wallets cannot be integrated with each other as regulations prohibited this i.e. one wallet cannot be used as a gateway for another wallet to facilitate a transaction. The unified QR code can be a standard solution.
Banks are integrated using the Unified Payment Interface (UPI). Non-bank entities such as wallets can also become interoperable with banks using this, apart from the QR code method.
“This QR code model will be only for urban areas as of now. Micro-ATM is a model which is meant for both rural and urban areas but should work better for the latter due to the convenience it provides," added Kulkarni.
Micro-ATM’s are handheld point of sale terminals used to disburse cash in far flung locations where branches cannot reach due to connectivity issues, or where setting up a traditional ATM may not be viable.
The Watal committee report released by the finance ministry on Tuesday highlighted interoperability among bank and non-bank entities among its suggestions.
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