The new bill payment system enables customers to pay by scanning the dynamic QR code linked to the unified payments interface (UPI)
Public sector Indian Bank has unveiled a QR code bill payment system for Chamundeshwari Electricity Supply Corporation (CESC).
The dynamic QR code on a printed electricity bill is linked to the unified payments interface (UPI). The payment is settled instantly and the QR code is disabled once the transaction is completed.
The solution is very convenient for consumers who can now make their bill payments without visiting any online portal or physically going to a payment centre.
According to CESC managing director Jayavibhava Swamy, the company is in the process of developing a new form of bill production and payment system in collaboration with Indian Bank. It is also working on RTGS-NEFT payments for bulk consumers with the help of a virtual account number (VAN).
QR code-based payments are very popular worldwide and particularly in Asian countries. The growing pace of online shopping has given rise to new fintech opportunities for QR codes a few years ago.
According to Juniper Research, the total number of users making payments via QR codes will surpass 2.2 billion in 2025, up from 1.5 billion in 2020. It will account for 29% of all mobile phone users in 2025.
Although QR-code-based payments are already widely used for retail and P2P transactions, their utilisation for bill payments is still quite uncommon.
In India, the RBI is working to standardize and improve interoperable QR codes and is expected to reinforce the acceptance infrastructure, provide better user convenience, and enhance system efficiency.