ATM/debit cards vs QR cards

ATM/debit cards vs QR cards 

India Post Payments Bank (IPPB) was founded on 1 September 2018. It does not issue
ATM cards and debit cards for both cash and cashless transactions. Instead, IPPB issues
new QR (Quick-Response) cards which work on biometric authentication and not on
passwords or PINs.

At present, IPPB offers multiple type of accounts. None of these accounts offer an ATM or debit card.

What is a QR card? 

A QR card contains a QR code or barcode that is used to identify account holders. Each QR
code is quique. The code is deciphered to identify the IPPB account holder. It can be
deciphered through a smartphone or micro-ATMs, a hand-held device which are used by
postmen.

How transactions are done? 

A QR card uses two-step verification process. Firstly, account holder’s identification is
done using the QR code. Secondly, account holder’s verification is done using biometric
data. For instance, upon completion of this two-step verification process, the account
holder is paid in cash which is carried by the postman. Doorstep banking services are
charged at Rs 25 per cash transaction.
QR cards can also be used for other purposes such as money transfer, bill payment and
cashless shopping.

Where are QR cards used? 

One can use QR cards to carry out transactions through post offices, postmen or Grameen
DakSevaks (GDS). Small merchants and kirana stores are also expected to join the IPPB
network.

What are the advantages of a QR card over ATM card? 

ATM cards are less secure. Money can be withdrawn by anyone who has ATM card and
PIN. On the other hand, QR cards require biometrics of account holder to carry out
transaction. Therefore, transactions using QR card can be carried out only by actual


account holder. Moreover, a QR card holder is not required to remember PIN.

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