Enhancing Digital Liquidity in Retail Payments
How QR Code can increase payment acceptance, propelling Jordan’s digital economy
By Maram Nwairan
Every day, we move closer to a cashless society. The global shift towards digital payments continues to gain momentum; the ubiquity of smartphones makes them the entry point for digital payment acceptance which are cheaper, faster, friendlier and safer payment methods driving wider financial inclusion. We are witnessing today a new wave of innovative payment solutions powered by digital technologies. One of these novel solutions that can expand the mobile payment space by gale in Jordan is the Quick Response Code Payment (QR Code Payment).
A QR Code is a type of matrix barcode which allows for the encoding of data in both horizontal and vertical axes. They are machine-readable, meaning they can be read by most smartphone cameras. The QR Code could be generated in a dynamic or a static mode. Different modules of QR code payment implementations are adopted in different countries.
Therefore, we identify QR-code based payments as an optimal target for the first phase of improving digital payment acceptance in Jordan. The QR code was invented in 1994 by a Toyota subsidiary named Denso Wave. It was designed to allow for fast decoding, hence the name Quick Response code. At its inception, the diversity of uses for this technology were not yet apparent.
The use of QR for payments took off dramatically when China, the world's largest mobile payments market, introduced the QR as a new payment technology with the rise of WeChat and Alipay. Different applications of QR payment appeared in the strategies of cashless payments and financial inclusions in countries such as Singapore, Indonesia, Thailand, India, and many more.
JoPACC’s- Jordan Payments and Clearing Company- strategy focuses on enhancing access, usage and quality of digital payments, bearing in mind the future needs of customers, partners and stakeholders. The ultimate aim is to reduce the reliance on cash in the economy, in favor of innovative digital payments, instruments and channels. Therefore, JoPACC has committed to undertaking a number of interventions aimed at improving digital payment acceptance across the country. The first step is to introduce EMVCo®1 compliant QR Code standards for the market to follow, to be used along with the Instant Payment System and the Jordan Mobile Payment (JoMoPay) Switch; two payment systems under the umbrella of JoPACC. QR Code specifications for those systems are designed to ensure interoperability for the merchant presented module. A large variety of potential use cases can be created for QR payment including in store, on- the -go, In app purchase and bill payment. A payment is simply performed by scanning a QR code from a mobile app or a smart potable device.
Today, standardization of QR payments bears key benefits to increase security, interoperability of schemes and convenience to all participants, customers and merchants. The standardization of QR payments can prevent market fragmentation pushing players to adopt an open-loop model which will enable merchants to serve customers with digital wallets from different issuers with only one type of QR code, thus benefiting customers through increased safety, convenience and a seamless payment experience. QR code is a game changer in financial services and we will spare no effort to enhance the financial experience of users in Jordan and open doors for new users to benefit from the digital economy we are working towards.
For further information on EMVCo® ,Click here( size 1092.09 KB،Type PDF) to View or Download QR Code Payment Standards.
Frequently Asked Questions
- How do I use the QR code to pay?
To make a QR code payment, the merchant first enters the amount of the transaction and generates the QR code. The customer then scans the QR code and confirms the transaction. Following this, both the merchant and the customer should get a notification of the transaction status.
- How can I know if a merchant accepts QR for payments?
Merchants should have a QR Payment Mark to inform consumers that they accept EMVCo® QR code for payments. The mark can also be used as an application indicator on a customer’s mobile device.
- How can I secure my QR payment as a customer?
The customer should verify the amount and merchant name/ Alias payed to the merchant before proceeding with the payment.
- Is QR code considered a safe payment method?
Jo-QR is a new presentment of payment that could be applied on mPOS or Mobile/ Tablet application. Implications on the safety of payments are currently applied on our switches, and the security on the application level should be ensured by system participants.
- Can I use QR while I am travelling?
Jo-QR will be implemented on domestic switches including the Instant Payment System, and JoMoPay. Ask your financial institution about the availability of international payments.
- As a merchant, how can I enable QR code payment and start accepting transactions?
Contact your acquirer (Point of Interaction provider) and ask more about availability of QR code for payments.
- As a system participant, what changes do I have to make to provide QR code for payment?
Update the platform to generate and scan an EMVCo® QR code.
- As a system participant, do I have to get certified from EMVCo®?
EMVCo® has not developed a traditional product approval process for QR codes but makes available some tools for Associates and Subscribers to submit Merchant-Presented QR codes for immediate evaluation or to get QR Code samples to test their Customer-Presented QR codes reader.
- Are the proposed Jo-QR standards compatible with international schemes’ QR payments?
The EMVCo® standards are inherently interoperable with international payment schemes. That being said, the Jo-QR is aimed at extending this interoperability to domestic payment schemes.
- Does JoPACC offer QR code for payments?
As a system operator, JoPACC does not offer QR code for payments. Instead, JoPACC announced the standards for the market, to enable interoperability of payments across its two payment systems (Instant Payment System and JoMoPay)
- As a system participant, how do I get started to enable QR code for payments?
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