Ghana government's introduction of the Universal QR Code payment system has been cited by Finextra, an internationally-renowned financial news publication, as an example of a new payment revolution that is sweeping through the world in the wake of COVID-19.
Ghana became the first African country to introduce the Universal QR Code Payment System when Vice President, Dr. Mahamudu Bawumia launched it last month.
While QR codes are popular in several advanced countries and are used for different functions, Ghana joined a handful of countries in the world that has introduced the universal QR Code Payment System, a system which allows customers to make electronic payments for goods and services from any bank account and mobile money wallet with their mobile phones.
Writing extensively on the new payment system the world is adopting, Finextra named Ghana as a classic example, alongside countries such as China, Saudi Arabia and Brazil.
With several countries getting ready to roll out the new payment system in the wake of COVID-19, Ghana has acted proactively and become a pacesetter in a new order, especially on the African continent.
Finextra Observation
In the wake of COVID-19, QR codes are taking over the world. Will Visa and MasterCard survive?*
The coronavirus pandemic has taught people to use QR codes in new and broader ways.
This presents a great opportunity to shake up international payment systems with their wildly expensive commissions - and move to something better.
QR codes are one of humankind’s brilliant inventions, and yet, they are still underestimated. In developed countries, they are mainly used as graphical hyperlinks leading to sites or other information. However, with QR codes, you can also create a cashless payment infrastructure - quickly and inexpensively.
This opportunity is now actively used by countries with developing economies, including China, India and Brazil. It also appears the coronavirus crisis could well spread this practice around the world, moving the QR code-based fintech industry towards a definitive breakthrough.
Today, we see how the process of market education has evolved:COVID-19has forced authorities in China, France, Qatar and other countries to implement QR codes actively used to track the health status of citizens and their movements. QR codes are becoming a familiar part of everyday life, making it not only possible but necessary to expand the scope and use of this technology, primarily in the field of finance.
How QR code payments work
A QR code with a payment link can be generated by both the seller and the buyer, however, it is usually sellers that generate QR codes. The process looks like this:
The seller creates a QR code and shows it to the buyer.
The buyer scans the QR code using their banking or finance application and clicks the "Pay" button.
The monetary transfer is sent to the seller’s bank.
The seller receives a payment confirmation and the payments system issues a receipt to the buyer.
There are two types of QR code: static and dynamic.
Static codes are created in advance and can be printed out and placed near the cash register. Once scanned by the buyer, they enter the payment amount on the smartphone, which is then processed when they press the “Buy” button.
Dynamic codes are generated for a specific payment and already contain an amount for payment, as determined by the seller.