Explain the cashless transaction mechanisms by (1) Bharat QR Code (2) UPI based banking applications.

Bharat QR Code
Bharat QR Code is a payment mechanism by which a matrix bar code is generated which contains information about a particular link or item. The code is readable by a QR scanner. The code contains all the account details of the merchant. When a person scans that code the payment procedure starts. The mechanism of using it is as follows:

• The merchant who is willing to use the Bharat QR code payment mechanism needs to display the code in their stores.
• A customer willing to use this mechanism for payment shall scan the unique code and make payment directly to the merchant’s account as the account details of the merchant are stored in that code.
• For this purpose, an application named the BHIM app must exist in the cell phone of the customer that can help in scanning the code with the camera of the phone.
• This QR code can be used to make payment across every payment platform and there is no need to download separate apps for every payment mechanisms like Paytm.

UPI based banking applications
The BHIM app has been launched by the NDA government under the Unified Payments Interface from the National Payments Corporation of India. The UPI based banking applications work as follows:

• In order to use this payment gateway one needs to sign in for a UPI based payment with the bank account, which links the person’s phone number with the account too.
• A person can select the bank and the relevant number will be visible to the user if UPI is activated.
• Then, in order to send money the mobile number or VPA address has to be typed. The amount can then be typed and payment made.
• In case of a UPI user direct payment can be made. If the payee is not a UPI user, then other mechanisms like IFSC are also available.
• The NPCI website provides the list of banks that currently provide the UPI facility. The account can accordingly be opened.