Mastercard MPQR Overview, Participants, and Money Flow

Use the links below to move between the SmartGen Mastercard documentation chapters and the live Sandbox Lab. The Lab is for simulated technical testing only; it does not authorize real-money use or live merchant fulfillment.

Mastercard MPQR Overview, Participants, and Money Flow

What MPQR is

Mastercard Merchant Presented QR is a consumer-initiated mobile payment program. A merchant presents a Mastercard QR code. A consumer uses an eligible payment application to scan or enter the merchant information, confirms the amount, and the consumer’s originating institution or wallet provider initiates the payment.1

MPQR is not the same as a generic QR image generator. The QR must contain a valid Mastercard/EMV-compatible payload and must be generated, parsed, and verified within the roles and controls approved for the program.

The four main participant roles

Role	Main responsibility	Typical organization
Receiving Institution	Holds or credits the merchant receiving account and can generate merchant QR codes	Merchant bank, acquirer, or approved processor
Originating Institution	Provides the consumer funding/payment application and initiates payments	Consumer bank or eligible financial institution
Transaction Originator	Provides a wallet or payment application and initiates payment transfers	Approved wallet provider or payment service
Processor	Provides technical processing and connectivity for an approved participant	Bank-owned or Mastercard-approved processor

Mastercard’s documentation says eligible participants must be Mastercard-licensed financial institutions or sponsored by one, registered and approved for the MPQR program, and compliant with applicable requirements such as KYC.2

Mastercard does not settle funds itself

Mastercard provides the network, data processing, APIs, and program infrastructure. Mastercard does not itself transmit the funds. A licensed financial institution transmits the funds and the Receiving Institution credits the merchant account.1

This distinction is important for SmartGen. A successful Mastercard Developers sandbox call proves technical connectivity, not that SmartGen has a settlement account or authorization to receive real customer funds.

Static QR versus dynamic QR

QR type	Amount in QR	Typical use	Main control consideration
Static QR	No	Printed sign, counter display, reusable merchant QR	Consumer enters and confirms amount; stronger merchant/reference matching is important
Dynamic QR	Yes	Website checkout, invoice, ticket, one-time order	Generate per order; expire or mark consumed; bind to order and amount

A static QR can be displayed on a website, printed at a counter, or placed on an invoice. A dynamic QR can be created for a particular transaction and amount. The exact QR payload and field rules must come from the approved participant and Mastercard program documentation.

End-to-end payment flow

The merchant presents a static or dynamic Mastercard QR code and, where applicable, the transaction amount.
The consumer scans the QR or enters the Merchant ID if scanning is unavailable.
The consumer application parses and verifies the QR payload.
The originating institution or transaction originator verifies that the consumer’s funding is available.
The originating institution or transaction originator sends a Payment API request to Mastercard.
Mastercard routes the payment transaction to the Receiving Institution.
The Receiving Institution approves or declines the payment.
If approved, the Receiving Institution credits the merchant’s receiving account and notifies the merchant or its processor.
Mastercard returns the Payment API result to the originating institution or transaction originator.
The consumer application displays the outcome.
If the response is UNKNOWN or PENDING, the originating system retrieves the transfer status through the Retrieval API.1 4

SmartGen’s current position

SmartGen’s current Worker is a secure technical sandbox client. It sends a server-side signed request using Mastercard’s published sandbox fixtures and receives a simulated transfer response. It currently acts as neither a live Receiving Institution nor a live Originating Institution/Transaction Originator.

Current prototype feature	Interpretation
Sandbox OAuth 1.0a signing	Technical authentication works
Payment API response	Direct sandbox transfer simulation works
Retrieval API route	Transfer lookup is implemented
Published test account URIs	Test fixtures only, never live merchant accounts
Empty `qr_data` in a test response	The current call is not a complete merchant QR issuance flow
Public web page	Demonstration interface, not a live merchant checkout

The correct business model for SmartGen

For a small technology company, the most practical first model is to provide software and checkout orchestration for an approved bank, processor, acquirer, or Mastercard-sponsored participant. The partner supplies the regulated payment relationship, merchant settlement, QR credentials, and program approval. SmartGen supplies the software, merchant dashboard, order integration, and operational tooling.

The direct-participant model is possible only if Mastercard and the relevant financial/regulatory authorities approve SmartGen’s role, sponsorship, business model, controls, and operating structure. Do not claim direct acquiring, settlement, or payment-gateway authorization based only on Sandbox access.

Mastercard MPQR Overview, Participants, and Money Flow

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