Russia's New Payment Code Aims to Simplify Life but Poses Risks
From 1 September, Russia will introduce a universal payment code (UPC) designed to forever rid buyers of the inconvenient situation where a store«s QR-code is incompatible with their bank»s app. However, behind the apparent convenience of the new standard that unites all payment methods, experts see hidden threats. The implementation of a unified national payment infrastructure, in addition to obvious advantages, carries risks that could affect the entire financial system.
The innovation, initiated by the Bank of Russia and the National Payment Card System (NPCs), will unite all popular payment methods: the Fast Payments System (FPS), bank cards, and the digital ruble. Instead of many different QR-codes at checkouts, one universal code will be displayed. The buyer will simply need to scan it with their smartphone camera and choose a convenient payment method, with all cashbacks and bonus programs preserved.
As explained by Elvira Belozorova, associate professor at the Financial University under the Government of the Russian Federation, in an interview with Komsomolskaya Pravda radio, the need for a single standard has been brewing for a long time. As an example, she cited utility payments: management companies often offer QR-codes from only one bank, which causes dissatisfaction among residents who use the services of other financial organizations.
«Now, having a card from some bank, I have to remember which specific QR-code I need to pay without commission. All this confusion led to the need to ensure a single standard,» noted the economist.
However, the new system has potential risks. The main danger, according to the expert, is possible systemic failures.
«If the system of universal QR-codes fails, and failures are possible in the digital world, it will paralyze all payments in the country simultaneously,» warned Belozorova.
