Payment operators will play a major role to provide a platform to merchants and consumers using QR code payment systems in Pakistan including Visa, Mastercard, UnionPay, 1-link/IBFT, Raast, etc.
According to the State Bank of Pakistan (SBP), these scheme operators have developed systems and rules, and serve as a platform to enable QR codes as a payment mechanism to their participants (acquirers and issuers).
The scheme operators shall devise the format of MAI and share it with the scheme participants. SBP will issue Bank Identification Codes (BICs) to the acquirers and issuers of the scheme. The scheme operator shall also devise the items to be used under Scheme Specific Data objects for the scheme’s acquirers and issuers (if needed).
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The scheme operator shall establish, maintain and operate the scheme through well-defined system/business rules, fraud management, consumer protection, dispute resolution mechanisms, etc.
Acquirers and Issuers
The acquirers could be classified as an entity that onboards the merchant including Banks, MFBs, EMIs, etc. On the other hand, The entity provides the mobile app/online portal or any other instrument to the customer(s) to process the QR Code.
It is pertinent to mention that the State Bank of Pakistan has issued standards for Quick Response (QR) code-based payments in Pakistan in order to accelerate the digitization of retail payments.
According to SBP documents, the standard is being issued to facilitate fund transfer transactions from one person to another in a convenient manner. This standard is applicable to all Banks, MFBs, EMIs, and PSO/PSPs in the country that are offering or desirous to offer QR codes as a mechanism for merchant payments to their customers.
The acquirers will start to generate QR codes for newly onboarded merchants and replace existing QR Codes in compliance with this standard not later than 30th June 2022.
The objective of issuing this QR Standard is to create an enabling environment for enhancing the availability and usage of low-cost acceptance points(ie. QR Codes) for the establishment of a cash-lite society.
One of the objectives of this standard is to harmonize the practices of QR Code placement at merchant locations. While devising a country-wide standard for QR codes, the possible scenarios in terms of QR generation and placement may be kept in mind at the time of merchant onboarding. The idea is to introduce interoperability of QR codes at the merchant level using a multi-scheme QR template as described earlier.
