The bank in India is going to start using quick response codes as well as NFC technology.
HDFC Bank, a financial institution in India that currently accounts for nearly one quarter of all electronic spending transactions now has intentions to use QR codes and NFC technology in order to be able to revolutionize the mobile payments sector in the country.
These types of contactless scans will allow smartphones to be safely used as mobile wallets for in-store purchases.
This introduction of QR codes and near field communication technology represents the second phase of the HDFC Bank’s effort to create a broader mobile banking and payments ecosystem. The first phase concentrated on encouraging more than 10,000 online retailers to partner with the bank in order to adopt its single-click banking platform. Now it has announced that it is moving forward with the next stages of its digital strategy and that it would be using its Payzapp mobile payments app as a large focus in that effort.
The tool allows for contactless mobile payments using scans of QR codes and NFC technology taps.
The CEO of HDFC Bank, Aditya Puri, explained that beyond using quick response codes and near field communication technology for security, the app will also have an e-vault storage component in order to safely keep documents for the user. The application will also provide users with useful financial planning tools.
The primary advantage that may be experienced through the use of the app may be in actually allowing users to make purchases in-store, as well as through some of the top e-commerce sellers (such as BookMyShow, Cleartrip, Flipkart, and IndiGo) without having to use each of the individual apps belonging to those companies. Still, users will be able to enjoy the same app experience with the single application on their devices.
Another benefit that was pointed out by the bank is that when the user is ready to check out, all they need to do is click the “buy” button because it is all that is needed to finalize the transaction. The authentication process has, after all, already occurred in advance when the user logged onto the mobile site of the bank. In store, that process involves only the addition of scanning QR codes or tapping NFC tags.