Definition
Merchant QR
A merchant QR code is a scannable code that lets customers pay a shop or service via UPI or wallets simply by scanning and entering an amount, enabling cashless acceptance at low cost.
Merchant QR codes encode a merchant's payment address. A customer scans it with any UPI app, enters or confirms the amount, authenticates with a PIN, and the money moves directly to the merchant's account, often with a soundbox announcing receipt.
India's BharatQR and UPI QR standards make these codes interoperable, so one sticker can accept payments from many apps. Static QRs work for any amount; dynamic QRs are generated per transaction with a fixed amount.
QR acceptance is cheap to deploy versus card machines, which is a major reason small merchants across India adopted digital payments so quickly.
Related terms
- Payment Aggregator (PA)A payment aggregator is an RBI-authorised entity that lets merchants accept various digital payments without each building their own bank integration, pooling and settling funds to them.
- SoundboxA soundbox is a small merchant device that announces incoming digital payments aloud, confirming UPI and other receipts instantly without the merchant checking a phone.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.