HDFC Bank terminals to incorporate UPI Payments
Acceptance of payments through the Unified Payments Interface (UPI, or Bhim), in shops is expected to get a big boost with HDFC Bank onboarding several organised retail chains onto DigiPOS — a point of sale (PoS) terminal that accepts multiple forms of payments. Over the next couple of months, more than four lakh PoS machines of HDFC Bank will be upgraded to accept UPI payments.
Once the machines are upgraded to DigiPOS, they can accept payments via UPI, Bharat QR, SMS Pay and PayZapp in addition to all cards," said Parag Rao, head of card payment products, HDFC Bank. Currently, UPI/Bhim has a distinct QR code, which can be scanned and paid via any Bhim app. In future, the UPI QR code will be incorporated in Bharat QR, which currently enables payments from virtual cards.
UPI was first activated on PoS machines in Reliance Retail stores on Axis Bank terminals enabled by payment aggregator Innoviti. HDFC Bank's entry is significant because the bank's machines account for a third of all retail payments in the country. With merchants standing to make major savings on payments through UPI, many retailers are expected to launch promotions for payments through this mode.
The upgrade will involve a visit by a technician to upgrade the software and provide a demonstration to the retailer. The card-swipe machine will generate a dynamic QR, which means that payment amount will also be incorporated in the code and the customer need not enter any amount and can complete the payment by merely entering his pin number in the app.
Rao said that some large organised retail chains have plans to promote UPI payments. These include the largest grocery chain and an electronic chain, among others. When they were introduced a year ago, UPI transactions made a beginning with peer-to-peer payments. Since then, they have picked up in the online space where Flipkart has been running promotions and also facilitating payments through its PhonePe app in partnership with Yes Bank.
HDFC Bank's UPI push will encourage retailers as the charges they pay on a UPI transaction are a fourth of what they would be paying on a credit card transaction. While some merchants did accept app-to-app payments using Bhim, these have not seen big volumes. According to Rao, since the PoS machine is the pivot for all payments in a retail outlet, the bank has decided to incorporate all payment options in the device itself.
Source: Times of India