Compulsory English Grade 12 || Language Development || Unit 6- Money and Economy || QR Code || NEB

 

 UNIT-5, MONEY AND ECONOMY

 

QR Code (Quick Response Code)

 

Money: Money is an economic unit which is a recognized medium of exchange for transactional purpose and functions as a medium of exchange, a unit of account and a store of value. Before money was invented there were several things used for transaction such as cowry shells, large stone wheels or string of beads (small decorative objects). Now money is widely used for transaction of goods and services, but in the modern time other payment methods are widely used such as checks, debit/credit cards, mobile payment, electronic bank transfer, bit coins, coins, diamonds and QR codes etc.

 

Economy: The management of financial matters for a community, business or family. It can help improve living standards and make society better place. Under this topic, there comes a large set of interrelated production and consumption activities. The means of production such as land, tools and technology which are used to produce goods and services are either owned by private organizations or public organization. These two systems are called capitalism and socialism respectively.

 

What is QR Code?

The acronym QR stands for Quick Response, which is a type of matrix barcode invented in 1994 by the Japanese automotive company Denso Wave. The code is machine readable optical label that contains information about the item to which it is attached. Smart phone cameras instantly read the machine scan able image. The number of black squares and dots represent certain piece of information. It is also used in payment system, which is also called contactless payment method. The consumer scans the QR code displayed by the merchant with their smart phone to pay for their goods. The the consumer enters amount s/he has to pay and finally submits.

 

A Japanese engineer, Masahiro Hara, developed QR Code for the company DENSO WAVE in 1994. The merchant payment was used in Japan and Later in China. The International Standard ISO/IEC 18004 (Information Technology) for QR code was approved in 2004. (ISO- International Organization for Standardization, 1947, UK; IEC- Import Export Code) The first adoption and use in mobile phone came with the rise of the smart phones. First it was used to access information. The proprietary standards of QR code were first adopted by the Chinese companies Tencent and Alibaba for payment. EMVCo (Euro pay, MasterCard and Visa), the three companies developed the payment industry standard in 2017. It was founded in 1998 and is located in California.

 

Customer’s Familiarity with QR

Tencent Holdings Ltd., a Chinese internet-based platform company founded in 1998, incorporated QR codes service in its social media service WeChat. WeChat, an instant message mobile app allows face-to-face friending by scanning a QR code displayed on a friend’s mobile phone screen. Another Chinese multinational technology company Alibaba Group Holding Limited, known as Alibaba facilitated QR in Alipay service. At the same Tencent also extended WeChat pay, a payment service directly integrated into social media service. Later both companies encompass e-commerce (commercial transaction through internet), bill payment (including utility).

 

Models to a QR Code Payment in face-to-face service environment:

1. The user presents a QR Code for scanning by the merchant

2. The merchant presents a QR Code for scanning by the user/customer

 

1^st Method:

·       The customer presents his/her QR code

·       The merchant sets the transaction value and communicates to the customer before scanning

·       On agreement between the customer and the merchant the code is scanned

·       The merchant’s terminal requests payment from the customer’s account either through directly from the scheme operator or through the acquirer

·       Both the customer and the merchant receive notifications of the success or failure of the payment

·       Finally, the merchant hands over the goods to the customer

 

Drawback of this method: The customer is vulnerable to and unscrupulous/dishonest merchant setting of the wrong transaction value before scanning. For the solution of this problem, the system needs a robust/genuine claims mechanism. 

 

2^nd method:

·       The customer scans the merchant’s QR code,

·       If the value is correct, only then the customer can scan the code, review the transaction details and agree to transaction, that’s why this is more complex type of transaction,

·       After forwarded to the system operator/acquirer

 

There are two options in this method:

Option 1

·       The customer scans the code,

·       Validates the merchant’s name and detail,

·       Inputs the value,

·       The the system notifies the merchant with the detail

·       If all is well then, the merchant hands the goods, otherwise there is dispute,

Option 2

·       By using a dynamic QR code, in which the merchant must have either a smart phone or a POS device (Point of Scale) capable of displaying QR code,

·       The merchant enters transaction detail in the device,

·       Then the code is generated incorporating transaction value plus the detail of the merchant,

·       The customer scans the code, reviews the details and approves the payment,

·       Finally, the transaction is forwarded to the operator,

 

Alipay and WeChat pay are the examples of prominent examples of QR code payment. They follow the close loop payment system which works automatically. The customers have to load fund into the spending account which is linked to the payment device. It has the direct relation between the consumer and merchant through payment system. This is just opposite to open loop payment system in which banks play the role of mediators.

 

 

QR Codes – International Card Schemes

As a result of publication of the EMVCo standard, both Visa and MasterCard launched QR Code based payment service in 2017 with a focus of emerging economics

 

Visa and MasterCard focus on merchant present QR code both static dynamic (a dynamic QR code can be edited and shared easily. Static QR codes, on the other hand, cannot be changed. The QR code has already been printed on posters, fliers, and even on the back of takeaway menus). They provide services in India, Kenya, Nigeria, Cambodia, Egypt, Ghana, Indonesia, Kazakhstan, Malaysia, Rwanda, Tanzania, Thailand, Uganda and Vietnam.

 

The brand name of Visa's service is m Visa QR and the brand name of MasterCard service is Masterpass QR.  These services are relevant to banked customers with an eligible Visa/Master Card- Debit card or Credit card. Their banks have to enroll them in the scheme (programming language) and integrated into their mobile banking app. Customers have to download their banks' mobile banking app onto their mobile phone and personalize it with their account details.

 

QR Based Payment Scheme/System

A scheme operator is responsible for scheme branding (the process of giving a meaning to specific organization, company, products or service) at acceptance points, defining the scheme rules and providing a mechanism for handling disputes and exceptions. The operator must provide a mechanism for acquiring and settling transactions operate such services on behalf of the scheme or securing cost effective, reliable and enduring access to one for use by the scheme's participants.

 

QR Code Payments Security

There are several security concerns around QR code payments,

·       There is little security around the codes, as a static codes displayed by a merchant could easily be attacked by an unscrupulous criminal sticking their own code over the merchant's code, which might not be noticed,

·       The use of merchant's IDs, registration and real time notification of payment is the primary defense against such attack,

·       The scanning extracts the merchant ID for submission to the scheme for payment,

·       The attackers must have a valid merchant ID to which payments could be diverted for this attack to be successful, and the onboarding process of the merchant would provide sufficient information for the criminal to be identified,

·       If a customer makes a payment, but the merchant doesn't receive notification, then the merchant doesn't hand over the goods, in such case an investigation is made to see where the customer's fund has gone.

 

Though this is a time consuming and expensive process, it would be better to stop the fraud happening in the first place rather than trying to correct it.

 

The customers are in the first line of defense. If the app displayed the merchant's name (trading name), the customers must check if it is correct. The use of digital signature is robust protection because the mobile banking app authenticates the merchant's ID and name as well as the customer before the payment is made. The app ensures if the merchant's name is correct or not.

 

 Working with words

A. Match the given words with their meanings.

Words                       Meaning

a. Prominent                         -Standing out so as to be seen easily

b. Vulnerable                        -exposed to the possibility of being attacked/harmed

c. potentialily                        -with the capacity to develop or happen in the future

d. transaction                       -an instance of buying or selling of something

e. initiatives                           - the power or opportunity to do something before others do

f. launched                            -to introduce a new plan or product

g. enduring                           -lasting over a period of time; durable

h. robust                                -strong and unlikely to break of fall

 

 

B. There are different abbreviations used in the text. With the help of internet, find their full forms.

 

QR                  – Quick Response

ISO                  - The International Organization for Standardization

IEC                  – International Electrotechnical Commission

URLs               – Uniform Resource Locators

EMVCo           – Euro Pay, Mastercar, Visa (Companies)

PIN                 – Personal Identificaiton Number

 

C. Pronounce the following words and identify the vowel sound /ʊ/ and /u:/. You can take help from a dictionary

 

Vowel sound /ʊ/	Vowel Sound /u:/
Put, Push, hood, full, bull, book, foot, look, hook, cook, should, soot, room, stood	Boom, food, loose, boost, groom, moon, soon, room, soothe

 

Comprehension

A. Decide whether these sentences are True or False. Write NOT GIVEN if you don’t find the informaiton.

a. The system of QR codes was first launched in South Asia. False

b. The standards of payments via the QR codes were approved by EMVCs. False

c. All sorts of business are aided by the QR code payments. NOT GIVEN

d. There are several models of the QR code payment service. False

e. In countries like Nepal, the QR code paying system is a complete fiasco. NOT GIVEN

f. The QR codes payment service is not applicable to small buniness. False

 

 

B. Answer the following questions.

a. How can one pay with QR codes paying system?

Ans:-  One can pay with QR codes paying system by scanning the QR code displayed by the merchant using his/her smart phone and entering the transaciton amount s/he has to pay for the good purchased or services.

 

b. How did Tencent and Alibaba companies utilise the QR code services at the beginning?

Ans:- Tencent and Alibaba, both Chinese multinational companies utilised the QR code services by adopting EMVCo developed proprietary standards.

 

c. How do the QR code-based payment services launched by Visa and Mastercar mitigate payment problems?

Ans:- The QR code based payment services launched by Visa and Mastercard mitigatge (solve) payment problem by focusing on Merchant presented QR codes (both static of dynamic) . If the code is static the customer is required to enter the transaction amount which is secured by their debit or credit card PIN. They have linked QR code payment to debit and credit card accounts.

 

d. Why do we need a scheme operator to run the QR code-based payment system?

Ans:- We need a scheme operator to run the QR code based payment system for branding the scheme, defining the scheme rules and providing a mechanism for handling disputs and exceptions.

 

e. What basic requirements are needed to use the QR code payment system?

Ans:-  The baisc requirements needed to use the QR code payment system are: i) the development of QR code payment mobile app by the merchant and ii) the smart phone capable to scan the QR code along with the merchant’s mobile phone app installed in it and by linkng to bank account of loading the fund to the app.

 

f. How can security concerns related to payment via QR codes be addressed?

Ans:- The security concern related to the payment via QR code can be addressed by using merchant’s ID, registration system, and real time notificaiton of payment to both the user and the merchant.

 

 

g. Who should be more careful: customer of the merchant in terms of payment issue? Why?

Ans:- The customers should be more careful in terms of payment because they are in the first line of defense and they have to check the details of the merchant before the payment is made.

 

h. Do you think the QR code-based payment can be a panacea for all sorts of payment problems? Why?

Ans:- I don’t think that the QR based payment can be a panaca (remedy) for all sorts of payments. For making payment via QR code, any customer must have knowledge about the function of this system. They must have smart phones along of mobile app installed and internet facility. Most of the people still don’t have technical knowledge and can’t operate QR code payment. Even theyd don’t have any idea about this system of payment because it is more complex and difficult. In such a situation, still QR code-based payment can’t be a remedy for all sorts of payment problems.

 

Critial Thinking

a. Some business houses, shops and department stores in city areas have started to adopt QR code payment system in Nepal, too. What should be done to make more accessible? Discuss.

 

Ans:- The QR code payment system is a digital and contactless payment system. This digital mode of payment has become more applicable in cities in Nepal. This contactless payment allows the customers pay for the goods purchased via scanning the QR codes provided by the merchant using their smart phones. In the past different things were used to make transaction such as cowery shells, large stone wheels and strings of beads. At the present time payments can be made through check, wire transfer, debit/credit cards, and QR codes. Such kind of payment system is very much useful in such a place where people are familiar with technology or digital world, otherwise it is troublesome. Although a large number of people in Nepal are unfamiliar with this payment system, some business houses, shops and department stores in cities have adopted this mode of payment. Our country has many remote areas and people don’t have access to internet and technological knowledge either. To make it more accessible, there must be availability of internet facility and technological knowledge about it. Even most of businesses, merchants, traders in remote areas don’t have knowldege about the QR. So first of all, there must be internet facility, and technical knowledge about this system of payment.

 

b. The payment landscape is shifting gears from cash to digital mode. Digital payment brings ease and convenience to the consumer. Is it possible to apply such cashless methods in payment in Nepal? Discuss.

 

Ans: - In the past, most of people in Nepal depened on cash and cheque for payment system. Even most of people preferred to transact on cash rather than cheque. With the gradual familarity to digital world, easy access to internet and smart phones, most of people in city areas prefer to purchase goods via digital mode of payment. Instead of paying cash for services, goods and utility bills and investing in share market people prefer to use digital wallets such as Khalti, Esewa, mobile banking apps, Mero Share and Connect IPS etc. Even most of banks provide mobile banking and internet banking services which are preferred by the customers these days. In this way the payment landscape is shifting gears to digital mode. This digital mode of payment has made the payment system easy and fast. People had to use time and efforts for making payments on cash. They had to go to the counters and had to wait for their turn to make payment of utility bills such as telephone, electricty and water. Even people pay school fees through digital medium. It has become easy and convenience to the consumers.

 

This mode of payment is complex though it reduces our time. The matter of security is another problem because sometime we read news about unscrupulous attack of the criminals in digital world by hacking and taking away money from people’s account. Internet facility is another problem for applying cashless payment in Nepal. Even most of financial institutions are not familiar to this mode of payment. For applying cashless payment throughout Nepal, the above-mentioned problem must be addressed first.

 

 

Writing

A. Punctuate this paragraph with appropriate punctuation marks.

Ans:

it was a cold freezing day it had been snowing all day in new york mr tim cooked and i went outside to play in the snow we had not seen much snow since we went to skiing in sweden last year mrs smith was right because she had said that we’d see snow the next day we had really a wonderful time there didn't we 

 

Punctuation

It was a cold freezing day. It had been snowing all day in New York. Mr. Tim cooked and I went outside to play the snow. We had not seen much snow since we went to skiiing in Sweden last year. Mrs. Smith was right because she had said that we’d see snow the next day. We had really a wonderful time there, didn’t we?

 

B. Write a news article about digtial payment system in Nepal.

Will be availabe in the description of the video soon.

 

Grammar:

Questions

A. look at the following questions and say what type of questions they are.

a. Do you like this country?                                          Yes/No Question

b. Where is she from?                                                     Wh-Question

c. How many eggs do we need for this cake?       Wh-Question

d. Whose children are playing in the yard?            Wh-Question

e. Does she like ice cream or sweets?                      Yes/No-Question/Choice Question

f. She sent him an invitation, didn’t she?                Question Tag

g. Could you tell me if the doctor is available?     Request/Yes/No- Question

h. Do you know how tall they are?                            Yes/No Question

 

B. Choose the correct words from the box to complete the sentences.

Do     you    is       can    where         did     does  did

a. Is your friend a scientist? - No, he’s an artist?

b. Does Naresh live in Kathmandu? – No, he lives in Pokhara.

c. When did you get home? – I got home yesterday.

d. What time do you get up? – I get up at 6:00.

e. Did the children go to the party? – Yes, they went there after school?

f. Are you going to school? – No, I am going home.

g. Can you speak Chinese? – Just a little.

h. Where did you grow up? – I grew up in Okhaldhunga.

 

C. Make wh-questions so that the words in bold become the answer.

a. Romeo loves Juliet.

Ans:- Whom does Romeo love?

 

b. My mother made a delicious bread yesterday.

Ans:- What did my mother make yesterday?

 

c. The music was composed by Narayan Gopal.

Ans:- Who was the music composed by?

 

d. I’m looking for a new book.

Ans:- What are you looking for?

 

e. They were talking about the new movie.

Ans:- What were they talking about?

 

f. She got the idea from a story?

Ans:- Where did she get the idea from?

 

g. She always goes to school on foot?

Ans:- How does she go to school?

 

h. She sometimes goes to the cinema?

Ans:- How often does she go to the cinema?

 

i. They have been waiting for three years.

Ans:- How long have they been waiting for?

 

D. Change these indirect questions into direct ones.

a. Could you tell me where the market street is.

Ans:- Where is the market street?

 

b. I’m longing to know what time the bank opens.

Ans:- What time does the bank open?

 

c. Do you have any idea how he’s managed to get in shape so quickly?

Ans:- How has he managed to get in shape so quickly?

 

d. I’d like to know how much this motorcycle costs these days.

Ans:- How much does this motorcycle cost these days?

 

e. Did you notice if he had left the car in the park?

Ans:- Had he left the car in the park?

 

f. Have you found out if the train has left?

Ans:- Has the train left?

 

g. I was wondering if they speak English well.

Ans:- Do they speak English well?

 

h. Would you tell us how we can get to the post office from here?

Ans:- How can we get to the post office from here?

 

i. Do you remember if I locked the front door?

Ans:- Did I look the front door?