In line with a higher use of electronic means of payment, the use of quick response (QR) codes has kept on gaining share among financial consumers. Last year, the number of QR code transactions increased five-fold, and today one out of four payments by transfer is made by scanning a QR code.
In the first half of January 2023, the number of daily payments by transfer through an interoperable QR code averaged 253,056 against 46,828 reported in the first 16 days of January 2022. The number of transactions that have been carried out by a QR code since the latter was launched is above 52 million, evidencing their exponential growth. These figures include interoperable QR code transfers only. Hence, transfers made from an e-wallet by scanning a QR code at a store of the same company are excluded.
In addition, QR code payments from sight accounts represented nearly 86%, and payments from payment accounts, 14%. In turn, 61.3% of stores credited the funds to sight accounts, and 38.7%, to payment accounts.
It is worth noting that bank branches across the country will be closed for Carnival holidays (next Monday and Tuesday). Electronic channels such as online banking, mobile banking, and ATMs will operate as they usually do on public holidays.
The role of the BCRA
The Board of the BCRA adopted different measures seeking to streamline the use of QR codes in payments and to speed up its growth. As a result of these measures, the role of the BCRA became vital for financial consumers to draw on this means of payment.
For example, one of the main measures that boosted this payment method was 3.0 Transfers, launched in November 2021. This is an innovative system that comprises interoperable QR codes, which enable financial consumers to make payments by transfer from their mobile phones using any QR code, from an e-wallet or any relevant bank app.
This new, open and universal ecosystem also boosts competition among the different players in the system, thus resulting in better conditions for users and stores. Indeed, it seeks to promote the creation of an open and universal digital payments ecosystem, and to achieve greater inclusion of the sectors that do not use financial services yet, one of the priorities in the BCRA’s agenda.
The increasing use of electronic means of payment is key to the BCRA’s policies on financial inclusion. Besides, their widespread acceptance by financial consumers also helps to prevent organized crime, drug trafficking and money laundering, and to formalize the economy, allowing tax contributions to be better distributed and in a more moderate basis.
In February 2022, the Board also adopted a measure to strongly develop the use of mobile phones to make payments. It established new technical requirements for payment service providers (PSPs) and financial institutions that offer e-wallet services, aimed at reinforcing measures to mitigate fraud in e-wallet transactions. In fact, a technical security process was added to the already implemented client authentication and authorization of payment instructions to supplement and reinforce the security measures previously adopted by the BCRA.
The Registry of Interoperable Digital Wallets was also created in February, so that financial institutions and PSPs providing e-wallet services may register there and obtain the relevant certification. This registry has been available at the BCRA website since July and provides users with information on the wallets that can be used to make payments by transfer by reading any QR code.
The BCRA’s determination to give immediacy to the system is another factor that paved the way to a wider use of a QR code for payment. This measure aims at ensuring that stores’ bank accounts or payment accounts are credited instantly. Thus, total immediacy of payments is guaranteed 24/7, and payments are irrevocable.
Likewise, the system is economical both for buyers and stores as well. Buyers do not pay any fees on these transactions, and stores incur lower costs—ranging from 6 to 8 per thousand (plus VAT)—and lower financial costs as funds are credited instantly. Thus, these QR code payments expand the menu of payment options and reduce the use of cash at stores, resulting in lower costs and more security.
Payments by transfer through interoperable QR codes are flexible since financial consumers are not required to hold an associated debit card . Users can open a savings account online at a financial institution without having an associated debit card. Financial institutions must issue a card at their request.
