There are three smartphone based payment options available currently: UPI@PoS, BharatQR and Samsung Pay .
While UPI is predominantly a peer-to-peer payment mode, the latest addition to its stable is UPI@PoS, where a customer can make a payment at a retail merchant outlet through UPI. It requires the merchant to select the option of UPI@PoS at his terminal, it generates a dynamic quick response code which has to be read by the customer’s UPI app and payment is made immediately. A slip gets generated at the terminal to confirm receipt of payment. Samsung Pay is a payment method that allows a bank customer to link multiple cards with his smartphone, and make the payment by tapping the phone at the PoS terminal. BharatQR is a QR code based payment method where customers can scan the code and make payments through his bank’s app.
Card swiping has various vulnerabilities starting from threats such as skimming causing fraud and also mechanical damage. Also not every individual is comfortable carrying a plastic card and handing it over to a merchant. That way smartphone based payments do not need any physical handing of the device and also is safer.
While PoS is expensive and difficult to manage, smartphones offer asset light payment modes. Also cards come with their own security concerns which are less in case of smartphones.
