QR code payment is getting popular in Nepal. How does it work? Is it secure?

1 month ago 46
  • QR codification outgo is gaining momentum owed to societal distancing during the Covid-19 pandemic.
  • The Nepal Rastra Bank has introduced a draught of QR Code Guidelines, Framework, and Specifications with 3 large outgo principles: interoperability, scalability, and security.
  • The improvement of integer outgo platforms and expanding consumers’ penchant towards e-payment secures a agleam aboriginal for QR codification payment.

Lately, the QR codification has revolutionised integer outgo services each implicit Nepal. Many radical person started preferring integer platforms similar e-wallets, mobile banking, and assorted different outgo work operators (PSOs) and outgo work platforms (PSPs) for online fiscal transactions.

Several ample and small-scale corporations, from supermarkets to groceries, restaurants, and section vendors, each kinds of traders are accepting QR codification payments these days. Customers tin marque payments simply by scanning the QR code, which they find to beryllium the astir convenient transaction.

What is the QR codification system?

A quick-response (QR) codification is simply a two-dimensional barcode that consists of achromatic squares arranged wrong a quadrate grid connected a achromatic background. The codification is integrated with machine-readable information, which you tin entree done a QR codification scanner oregon a smartphone camera.

Photo: Pixabay

Originated from a Japanese institution backmost successful the 1990s and erstwhile utilized for the automotive industry, a QR codification strategy is nowadays massively utilized successful assorted sectors worldwide. Nepal is nary objection to the implementation of the QR codification system.

How does QR codification outgo work?

QR codification outgo is arsenic elemental arsenic scan and pay; each you request is simply a QR codification scanner oregon conscionable a smartphone camera, to beryllium much specific. However, the process of scanning a QR codification whitethorn alteration arsenic per the services you are utilizing it for.

You tin wage by scanning the codification attached to a product, oregon sometimes retailers tin judge outgo by scanning the QR codification connected your telephone that provides your recognition paper details.

Why take QR codification payment?

QR codification outgo is much than conscionable a speedy mode of making payment. Besides instant payment, it comes with galore different advantages: apical security, casual set-up, and precocious reliability.

Making outgo via a QR codification provides top-level information since you bash not request to stock immoderate confidential details similar recognition cards. All our idiosyncratic accusation is stored encrypted successful the code. It tin beryllium an businesslike substitute for point-of-sale infrastructures by eliminating peculiar billing equipment.

It besides prevents method errors oregon instrumentality faults that you mightiness look utilizing recognition cards, making them much reliable.

QR codification usage successful Nepal

The Covid-19 pandemic has immensely boosted the Scan and Pay work done the QR codification successful Nepal also. People being acrophobic with their hygiene are supporting the contactless outgo system. Evolving integer outgo work providers similar Fonepay, IMEPay, Khalti, QPay, and SmartQR besides promote QR codification outgo by offering their users Scan and Pay services.

According to a study by the Nepal Rastra Bank, the fig of QR-based transactions from mid-December 2020 to mid-January 2021 was 372,176. Similarly, the transactional magnitude was Rs 1.245 billion. The adjacent month, the fig of transactions accrued to 535,790 and the magnitude to Rs 1.712 billion, suggesting a wide emergence successful the usage of QR codification payment.

Subash Sharma, the CEO of F1 Soft International, besides states that determination are implicit 275,000 traders utilizing the QR codes for outgo each implicit Nepal. His company, eSewa, has acquired 75,000 of them for Fonepay service. Fonepay has collaborated with much than 50 banks for QR codification outgo via mobile banking.

To beforehand QR-based payment, the Payment System Department of Nepal Rastra Bank has prepared a QR Code Guidelines, Framework, and Specifications connected January 27, 2021. Moreover, the authorities of Nepal has initiated the process of opening a bank relationship via the Nagarik app. The KYC verification portion opening the slope relationship tin present beryllium done connected the Nagarik app, by scanning the QR code. This initiation by the Nepal authorities is unsocial and a catalyst for the integer Nepal campaign.

How unafraid is QR codification outgo successful Nepal?

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There person been records of harmful QR breaches successful galore developed countries. The scribbled quality of QR codes makes it astir intolerable for humans to spot successful lawsuit of immoderate malice. Cybercriminals can fake a QR codification and regenerate it with an authoritative QR codification assigned by businesses. This makes the information stored successful the codification much susceptible to cyber theft.

The bully happening is that Nepal is inactive successful its archetypal signifier of the integer economy, wherever QR outgo is simply a precise caller concept. Not galore radical are acquainted with its services, making them little apt to entree immoderate unauthorised QR code. Plus, cybersecurity is making immoderate large advancement with implementing highly influential machine programmes and cyber policies.

Major uses of QR codification successful Nepal

You tin find QR codes successful assorted bully and work sectors similar departmental stores and tiny shops, and galore banks and fiscal institutes (BFIs). You tin marque payments successful supermarkets via a QR codification scanner utilizing a integer wallet. Local vendors and shops are besides utilizing QR codes for speedy payment. Fruits and rootlike markets besides diagnostic QR codification payments for market shopping.

Another large usage of the QR codes is recovered astatine restaurants and cafeterias. It tin beryllium utilized to entree the nutrient paper and spot your orders straight from your phone. This avoids utilizing a carnal menu, which tin enactment arsenic a transmission cause of diseases owed to person-to-person use.

You tin wide your measure with contactless outgo via a QR code. Likewise, galore online nutrient transportation services similar Foodmandu have started accepting payments via QR codes.

Commercial banks similar Prabhu Bank Limited and Nabil Bank Limited person introduced their QR outgo services for vendors successful marketplaces similar Kalimati Fruit and Vegetable Markets and Kuleshwor fruits market.

Future and challenges of QR codification Payment successful Nepal

Photo: Unsplash/ Rebecca Hausner

Retailers and consumers person been utilizing currency arsenic superior means of outgo for galore generations. Switching to immoderate e-payment services similar QR codification volition beryllium a long-running process. Nevertheless, consumers are showing much involvement successful integer outgo considering harmless commercialized and avoiding carnal interaction arsenic overmuch arsenic possible.

PSOs similar eSewa have been offering QR outgo services without charging immoderate further interest during transactions to promote specified platforms. Around 64.65 per cent of the full colonisation successful Nepal is estimated to beryllium financially progressive nether the property radical of 15-64 years. This procreation has entree to antithetic media that tin rise consciousness of integer outgo significance, truthful the numbers of users is expected to turn successful the aboriginal rapidly.

QR codification outgo systems tin play an impactful relation successful changing informal sectors into the ceremonial economy. However, Nepal needs to tackle challenges successful galore infrastructural and behavioural traits earlier reaching the afloat imaginable of e-payment. The fig of net users is impressively increasing but inactive not capable to process an established integer economy.

The deficiency of interoperability is different large contented for a unchangeable integer outgo service. Rapid maturation successful respective PSOs and PSPs whitethorn effect successful an imbalance successful the ecosystem of the integer economy. To debar this hurdle, a unified outgo power is necessary.

A level similar Smart QR developed by the backstage tech assemblage enables users to link antithetic PSPs’ QR outgo services via the aforesaid application. Such QR switching exertion tin assistance physique an interoperable web and facilitate e-payment.


QR codification outgo tin beryllium a captious origin successful uplifting Nepal’s integer economy. The authorities giving much precedence to integer outgo systems and the cardinal slope to beforehand this strategy tin beryllium a caput commencement for QR codification payment.

Mass consciousness campaigns and promotional events tin besides power this transition. Infrastructural improvement similar high-speed net transportation and wider idiosyncratic accessibility indispensable beryllium considered. Payment work providers, outgo work operators, slope and fiscal institutes, and traders should enactment unneurotic to bring interoperability to their integer outgo services.

The eventual extremity should beryllium offering a one-stop solution for the consumers to entree each sorts of e-payment services, including QR codification payment.

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