How does Mastercard 𝐌𝐞𝐫𝐜𝐡𝐚𝐧𝐭 𝐐𝐑 𝐜𝐨𝐝𝐞 replace PoS (Point of Sale)?

 The diagram below shows how Mastercard MPQR (Merchant Presented QR) works. There is 𝐧𝐨 𝐏𝐨𝐒 𝐭𝐞𝐫𝐦𝐢𝐧𝐚𝐥 𝐨𝐫 𝐩𝐡𝐲𝐬𝐢𝐜𝐚𝐥 𝐜𝐚𝐫𝐝 involved.

Step 1️⃣: The merchant presents its QR code at checkout. 
There are 𝐭𝐰𝐨 𝐭𝐲𝐩𝐞𝐬 of QR codes:

- 𝐃𝐲𝐧𝐚𝐦𝐢𝐜: the code is generated for each transaction and includes the payment amount

- 𝐒𝐭𝐚𝐭𝐢𝐜: the code is used for all transactions

Step 2️⃣: The customer scans the QR code using a mobile app and confirms the payment.

Step 3️⃣: The payment app sends transaction data to the transaction originator to initiate MPQR payment.

Step 4️⃣: The transaction originator debits the customer’s account in the customer’s bank.

Steps 5️⃣ and 6️⃣: The transaction originator sends a payment request to the Mastercard network. Mastercard routes the payment request to the merchant’s bank.

Steps 7️⃣ and 8️⃣: The merchant’s bank approves or declines the request. If it is approved, the merchant’s bank credits the merchant’s account.

🔹 Steps 9️⃣ - 1️⃣1️⃣: The payment response is sent back all the way to the mobile app.