State Bank issues QR code standards

Move aimed at accelerating digitisation of retail payments

KARACHI:

The State Bank of Pakistan (SBP) has issued standards for quick response (QR) code-based payments in Pakistan to accelerate digitisation of retail payments.

According to a press release issued on Wednesday, the standards are to be met for issuance of QR codes and acceptance of payments through the same. “The initiative is a part of SBP’s drive to promote inclusion, innovation and modernisation of payment systems in the country,” it said.

Chairing the fifth stakeholders consultation meeting on digital financial services in August 2021, State Bank of Pakistan Governor Dr Reza Baqir had announced the development and issuance of a single QR code.

“With the issuance of a single country wide QR code standard, Pakistan joins the list of countries who have taken similar steps to promote low-cost digitisation of payment services, especially at a retail level,” it added. QR code based payments are becoming increasingly popular around the world for being low-cost and easy to use via mobile applications.

However, QR codes being issued by financial institutions in Pakistan are not usually based on common industry standard and have limited interoperability due to which their acceptance and usage in the country is very low.

Accordingly, common QR code standards have been developed by an industry consultative group, formed by SBP, and is based on EMVCo’s QR code specifications for merchant payments.

EMVCo is a global technical body that facilitates worldwide interoperability and acceptance of secure payment transactions by managing and evolving the EMV specifications and related testing processes.

The standards are designed to be flexible to adapt to new and innovative use-cases, with data objects allocated for scheme, acquirers and SBP for future use. SBP has issued two variations to facilitate the issuance and adoption of QR code-based payments, one for person-to-person payments and other for person-to-merchant payments.

Published in The Express Tribune, March 3^rd, 2022.

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