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Mastercard’s Positive View of QR Technology


Nov. 20 2020, Updated 5:02 p.m. ET

QR code: Efficient for merchants

Mastercard (MA) utilizes QR (quick response) codes to streamline customer payments, resulting in a simple, cost-efficient transaction. When using interoperable QR, merchants don’t have to display different QR codes in relation to different promotions or offerings. This streamlined approach could make receiving payments easier for them.

Plus, merchants don’t need to incur charges that are related to the terminal, which helps reduce costs. With the help of smartphones, merchants can accept the payments easily and securely.

On February 21, 2017, Mastercard announced, “In a milestone move to support India’s evolution into a digital economy, Reserve Bank of India and Indian Banks Association today announced the launch of Bharat QR, the world’s first interoperable Quick Response (QR) code acceptance solution.

“The solution has been developed by Mastercard in collaboration with National Payments Corporation of India (NPCI) and Visa. American Express is also on board to adopt these standards.”

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Different markets

Mastercard (MA) is planning to allow 1 million merchants to adopt interoperable QR code in 2017. In the next two to three years, the company plans to cover at least 5 million merchants. Ease of use and secure payments are Mastercard’s top priorities for merchants and customers.

Apart from the presence of this product in Africa, Mastercard is targeting markets such as Latin America and Southeast Asia. The company has made substantial investments in India in the past few years, and it plans to make more investments.

Mastercard’s (MA) 3Q17 profit margin stands at 38.7%. Among its peers (XLF), Global Payments (GPN), Western Union (WU), and PayPal Holdings (PYPL) posted profit margins of ~6.2%, ~3.8%, and ~12.7%, respectively, in 3Q17.


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