Paytm To Support and Scan Third Party QR Codes

The Quick Response code payment method has led the revolution in the online payment systems by connecting the offline and online ecosystems. Paytm, which pioneered the QP based mobile payments system, is now set to open up its code scanning service for third party companies as well.

Paytm users will be able to scan generic QR codes developed on an open source platform. This is a strategic move by the company to expand into new business avenues and build a discovery business, especially in the offline space and therefore, generate revenue by charging the third party brands and by plugging advertisements.

Speaking about this move Senior Vice President of Paytm, Deepak Abbot said the scan and pay feature has been a good success for Paytm and they are, hence, aiming to offer the same experience for the third party users. “This is being built as the go to engine of sorts for discovery for web links, download apps, discover products, store information as well as continue to make payments,” he added.

Since the beginning of the year, both Unified Payments Interface (UPI) and the Government of India have launched their own QR codes to promote digital payments across channels. At present, close to 65% of the transactions are being conducted on Paytm’s QR based platform. Abbot also said, by adding the Rupay and UPI networks, Paytm will eventually increase the number of QR code based payments in the industry. QR code based payment services include zero transaction charges, apart from a minimal transfer fee and do not include any cost of installation.

The QR code based transaction option was first introduced by Paytm in October 2015, allowing customers to simply scan a code and instantly transfer money to the merchants Paytm account. They plan to add 100 million merchants across 650 districts, enabled with these codes, by December. Over the last couple of years, Paytm has also been diversifying into multiple businesses beyond payments and are also expected to launch a chat messenger app by the end of this month.