Difference in Digital Payment options of Digital India: BharatQR, BHIM and *99#

After demonetisation, we are crowed with plethora of digital payment options. Here again, Indian government has launched a new digital platform for cashless transaction – BharatQR code to promote Digital India campaign.

The other Government-promoted digital options that come to our timeline such as Bharat Interface for Money (BHIM) App, Unified Payment Interface (UPI) and *99# Mobile Banking, in addition to existing modes such as internet banking, mobile banking and Immediate Payment Service (IMPS).

Apart from above digital payments systems, the private leaders such as PaytmPhonePe, MobiKwik, etc are also  promoting the Digital India and boosting the idea of less cash economy.

After crowded with so many digital options, we are in confusion state and undoubtedly questions arising in our mind – What’s the difference b/w these digital options? Which one will be suitable for me?, etc.

Genuinely, we Indians mostly prefer Government-promoted stuff whenever our priority is related to money, insurance, job, education, etc. We always want to ride on safe-mode. Thus, at this moment, I’ll focus only on Government-promoted digital options for digital India.

Digital India – Quick Outline

  1. BharatQR code: Simple way for purchasing goods & services digitally. Though, you can’t enjoy banking facilities in it.
  2. Bharat Interface for Money (BHIM) App: One app for all. It not only support UPI-based app but also supports non-UPI supported banks using an IFSC code and an account number.
  3. Unified Payments Interface (UPI): One app for each bank for financial transactions digitally.
  4. *99# Mobile Banking: Works without Internet. Anyone can access banking services by dialing *99# from his/her mobile registered with the bank.

BharatQR code

The latest innovation of our Indian Government – BharatQR code- It is the first quick response (QR) code to pay digitally for purchasing goods and services without swiping card on Point of Sale (PoS) machines. The code eliminates the need of entering the merchant’s ID or phone number to make payments. The customer can simply make payments by scanning the QR code and entering the transaction amount. The amount gets transferred directly from the bank account without the need of a swiping machine.

If merchants & customers are on different platforms, then nothing to worry, BharatQR will enable payment from one to the other. This means that merchants need to display only one QR code instead of multiple ones for different payment platforms. That’s why, BharatQR code is an inter-operable payment acceptance solution. Thus, this new mechanism is beneficial for both customers & merchants.

ALSO READ BharatQR : Know In-depth About New Cashless Transaction Mechanism

From merchants point of view, they need not to install a POS machine at their shops whether it is 2 or 3 floors or it is mall. They only need to display one QR code at the storefront or through the acquiring bank’s mobile application. Therefore, because of BharatQRcode, no extra money will be spent on maintenance of PoS machines and it’s also safe & secure digital payment mechanism.

Bharat Interface for Money (BHIM) App

The UPI-based digital payment app “BHIM” is one app for all. You can send, receive or request money from a payment address across any UPI supported banks. The app also supports non-UPI supported banks using an IFSC code and an account number. Apart from this, the app also allow customer to transfer money to the Aadhaar number linked with a beneficiary’s bank account by choosing the “Pay to Aadhaar Number” option.

READ MORE  BHIM In-depth: All You Need to Know About Bharat Interface for Money for Cashless Payments

Unified Payments Interface (UPI)

It’s an online payment system which facilitates all bank account holders to send and receive money from their smartphones instantly. In it, you don’t need to type your bank account information or net banking user id/ password while sending or receiving money. All you need is a Virtual Payment Address (VPA)- an address used in place of your bank account address, and a Mobile Banking Personal Identification Number (MPIN) – a six-digit secret code for doing financial transactions.

Let me clear you, the Virtual Payment Address (VPA) is like an email-ID. For example-technosavie@PNB or 9100091000@PNB. The suffix would be fixed word i. e. @PNB, while you can choose the Prefix. The prefix can be your name, phone number or anything you want.

*99# Mobile Banking

The *99# service works without Internet – Uses voice connectivity. Anyone can access banking services by dialing *99# from his/her mobile registered with the bank. This facility can be used from any GSM mobile handset – Basic or Smartphone.The *99# works on Unstructured Supplementary Service Data (USSD) technology. The facility available in 11 languages viz. Hindi, Bengali, Marathi, Gujarati, Punjabi, Assamese, Oriya, Malayalam, Kannada, Tamil, Telugu, English.

READ MORE Dial *99# Mobile Banking: Balance Enquiry, Mini Statement & Fund Transfer through IMPS

That’s all from my part. If you’ve any questions or suggestions regarding to digital payment systems than its’ all welcome!

Megha Jain

Engg & Freelance Author

Straight forward