Mass Level BanglaQR Acquiring
Innovation Name: Mass Level BanglaQR Acquiring.
Category: Best Innovation – Finance
Company: Mastercard.
The content of this case study was written by the representatives of Mutual Trust Bank
In 2019, Mastercard pioneered a national interoperable Quick Response (QR) code-based payment acceptance solution approved by Bangladesh Bank through Mutual Trust Bank’s mobile banking app. In line with the extended service, on August 31, 2021, Mastercard in association with payment gateway aggregator SSLCOMMERZ and Mutual Trust Bank Limited (MTB), launched the first white label Quick Response (QR) acquiring platform to provide mass level ‘BanglaQR’ in Bangladesh. With this latest technology, Mastercard debit, credit & prepaid cardholders will now just need to simply ‘scan to pay’ by accessing the Mastercard QR option on their MTB mobile banking app and by scanning the QR code displayed at the merchant’s checkout counter. Cardholders will then have to enter the amount they wish to transact in the app and enter their PIN, completing the payment with their Mastercard debit, credit or prepaid card. By providing a quick, secure and innovative approach to transact, Mastercard’s QR technology eliminates the need for consumers to carry cash and enhances the degree of convenience that users will enjoy. The mass level QR will bring mass micro merchants under the BanglaQR network, advancing the nation’s progress towards becoming a ‘Less Cash Society’.
Objectives
- Bringing Micro Merchants Online: As more stores are opening up to accept electronic payments and utilizing digital technology for the convenience of their consumers, the mass level QR aims to bring millions of micro merchants online under the BanglaQR network in the MSME industry, where there is no acceptance of digital payment, and make daily spend simple and convenient.
- Simple & Convenient Payment Solution: The seller would not require to keep any electronic device to accept card, all they would require from the customer is to scan the QR Code on a piece of paper at the checkout counter. Ultimately, benefiting millions of small and medium entrepreneurs, suppliers, distributors, and factory owners from all across the country, significantly accelerating the growth of digital payment acceptance in the country and advancing the nation’s progress towards becoming a ‘Less Cash Society’.
The Idea
The core concept behind this innovation was to eliminate the need of carrying cash at a micro merchant’s location where there is no facility to accept cards. Bringing more micro merchants under the BanglaQR network, advancing the nation’s progress towards becoming a ‘Less Cash Society’.
Execution
The strategy is to allow the customer to make contactless payment at a micro merchant location, where there is no POS machine to accept cards. The customer would simply need to log in to the MTB App, and click on the MPay option in the app and scan the QR displayed at the merchant location, enter the amount they wish to transact in the app and enter their PIN, completing the payment with their Mastercard debit, credit or prepaid cards. Immediately after the payment, a payment completion SMS will be sent to the registered mobile number.
The Challenges
The customers who shop at micro merchants were not familiar in making payments digitally, as previously there was no mode of acceptance of digital payment at these micro merchants. Purchases were mainly made through cash.
The micro-Merchants prefer cash over digital payments. It is because of two main reasons, the majority of the customers they receive prefer cash transactions and the lack of education on the convenience of digital payment facility at the merchant location.
Challenge in reaching the mass potential customers and creating awareness of the new concept purchase through mass level BanglaQR.
Value Addition
BanglaQR makes daily spending simple & convenient as consumers are making real-time contactless transactions at the merchant location.
Adoption of cashless and contactless transactions through BanglaQR eliminates the need to carry cash and avoid hygiene risk during this time of COVID-19 Pandemic.
Result and Impact
Currently, mass level QR payment acceptance in the MSME segment has been introduced at 58K+ merchant locations.
Introduction of a new mode of digital payment in the MSME segment, where currently there is no acceptance for digital payments.
The service has brought in a more unbanked population under the formal banking umbrella and contributed to Mastercard’s growth and vision in making Bangladesh a “Less Cash Society”.
Mastercard passionately works with the Government of the People’s Republic of Bangladesh for digitizing payments and aiding the government on their “Digital Bangladesh” roadmap, imbedding into the futuristic technology with the Bangladesh culture.