Special Offer for Chartered Accountant

Tally Automation
May 27, 2024

Quick Response, Big Impact: Dynamic QR Codes Transforming B2C Payments

Divyesh Gamit



In a world where convenience is king, the humble QR code has undergone a remarkable transformation.

No longer just a static square for scanning, the dynamic QR code is set to revolutionize how we handle transactions. With the Indian government’s mandate, businesses are now stepping into the future, making every invoice a gateway to effortless payments.

This leap is not just about compliance; it’s about connecting with customers where they are – on their smartphones, ready to tap, scan, and go.

So let’s dive into this digital evolution and see how it’s reshaping the landscape of business-to-consumer interactions.

The Mandate Unveiled

On March 21, 2020, a pivotal notification emerged as a beacon of change for India’s bustling marketplaces. It was a call to action for businesses with a turnover exceeding 500 crores to adopt a new ally in commerce – the dynamic QR code.

This digital dynamo on B2C invoices wasn’t just a suggestion; it was a mandate, a new norm between businesses and consumers.

Fast forward to the present, and the narrative has expanded. From August 2023, the embrace of e-invoicing and dynamic QR codes will no longer be the exclusive hallmark of the economic giants.

Businesses with a turnover exceeding 5 crores are now part of this narrative, stepping into the limelight of digital efficiency. This extension is not merely a regulatory shift; it’s a testament to India’s commitment to fostering a seamless and secure digital ecosystem for businesses of all sizes.

Understanding Dynamic QR Codes

Imagine a barcode that comes to life, a matrix of pixels that holds not just static information, but a living, breathing digital identity.

That’s the essence of a dynamic QR code. Unlike the traditional barcodes that remain unchanged once printed, dynamic QR codes are the chameleons of the digital world. They can update their content in real time, allowing businesses to keep their information as fresh as their services.

These codes go beyond the basics; they come with a suite of features that traditional barcodes can only dream of. With dynamic QR codes, businesses can track scan analytics, seeing how many times a code was scanned and when turning every scan into a story.

They can even add layers of security, like password protection, to ensure that the information is shared only with the intended audience. It’s not just a code; it’s a gateway to a smarter, more interactive customer experience.

Also Read: Consider These Five Things for Your Accounting Firm’s Business Growth Remotely

The Purpose Behind the Code

When the Reserve Bank of India (RBI) put forth its recommendations, it had a clear vision: to make digital payments as straightforward as possible for B2C transactions. The RBI advocated for the use of standard, interoperable QR codes like UPI and Bharat QR. This move was designed to phase out proprietary QR codes, ensuring a unified payment experience across the board.

Dynamic QR codes are the RBI’s answer to a streamlined payment process. They’re not just static images; they’re portals to instant transactions. With a simple scan using any UPI app, customers can transfer payments directly from their bank accounts.

The dynamic nature of these QR codes means they can carry transaction-specific details like the amount and payee information, eliminating the need for manual entry and reducing the scope for errors.

For businesses, this translates to a hassle-free payment collection, directly linked to the invoice in question. It’s a win-win: customers enjoy a seamless payment experience, and businesses benefit from the efficiency and security that dynamic QR codes bring to the table.

Who Needs to Display the Dynamic QR Code?

In the bustling bazaars of India’s economy, certain businesses are now tasked with a new digital responsibility: displaying dynamic QR codes on their B2C invoices. This isn’t a choice but a mandate for those with an annual turnover exceeding 500 crores. But who exactly falls under this digital mandate?

  • Retail Giants: The large-scale retailers who have become household names.

  • Manufacturing Maestros: The creators and builders of goods that fuel our daily lives.

  • Service Providers: Those who keep the wheels of convenience and luxury turning.

But it’s not just about who needs to display them; it’s also about what these dynamic QR codes must capture:

  • Supplier GSTIN: The tax identification number that’s the backbone of transparency.

  • Supplier UPI ID: The key to unlocking quick and secure payments.

  • Payee’s Bank A/C Number and IFSC: The coordinates for the financial journey of the payment.

  • Invoice Number & Date: The unique identifiers for every transaction.

  • Total Invoice Value: The bottom line of the business exchange.

  • GST Amount with Breakup: The detailed map of taxes that navigate the fiscal landscape.

And for those who tread different paths, like insurers, banks, transport agencies, and multiplexes, this mandate does not apply. They follow a road less digital, for now.

Dynamic QR codes are more than just a regulatory checkbox. They are the bridge between traditional commerce and the digital domain, a bridge that every qualifying business must now cross.

Also Read: A Guide to Strategic Financial Management

Generating Your Dynamic QR Code

Stepping into the digital age requires a guide, and here’s yours for generating a dynamic QR code for B2B invoices. It’s simpler than you think:

Step-by-Step Guide:

  1. Choose a QR Code Generator: Start with a reliable QR code generator that supports dynamic codes.

  2. Enter Invoice Details: Input the necessary invoice information, such as the GSTIN, invoice number, and total invoice value.

  3. Customize Your Code: Add a logo or color scheme to make your QR code stand out and maintain brand consistency.

  4. Test Your QR Code: Before finalizing, test your QR code with different devices to ensure it scans correctly.

  5. Deploy Your QR Code: Place the QR code on your invoice in a clear, easily scannable area.

  6. Monitor and Update: Use the analytics to track scans and update the linked information as needed without changing the QR code itself.

Compliance Tips:

  • Stay Updated: Keep abreast of the latest mandates and ensure your QR codes meet all regulatory requirements.

  • Accessibility is Key: Ensure the content linked to your QR code is accessible at all times for uninterrupted customer experience.

  • Keep it Scannable: Regularly check your QR code’s performance and readability to maintain its functionality.

  • Educate Your Customers: Inform your customers about the QR code and how it simplifies transactions, fostering trust and ease of use.

By following these steps and tips, you’ll not only comply with the mandate but also enhance your business’s operational efficiency and customer satisfaction.

Recent Blogs

blog-img-The Mindful CA's Guide to Inner Peace and Peak Performance
The Mindful CA's Guide to Inner Peace and Peak Performance
Pooja Lodariya


blog-img-AI in Accounting 101: Data Entry Isn't Rocket Science
AI in Accounting 101: Data Entry Isn't Rocket Science
Divyesh Gamit