In 2020, the pandemic surged the use of QR codes with over 1.5 billion active users. What’s more, the QR code payment users are predicted to exceed 2.2 billion by 2025.
When the Apple Pay QR code was introduced back in 2017, almost all other smartphone companies followed the trend.
Because this payment method limits physical contact, it’s not surprising why it became popular during the pandemic.
However, this is just one side of the story; the Scan to Pay method is an affordable, secure, and fast way to receive payments. As such, more people are turning to this payment procedure.
But how does QR code payment work? We’ll uncover the nitty-gritty details below.
QR Code And a Little On Its History
QR, short for Quick Response, is a two-way barcode containing payment information and other details like website links and contact information.
They are used for several purposes. For instance, the code helps monitor information about items in the supply chain, access websites, and direct customers to menus.
All you need to do is scan a code through your smartphone camera and get the job done. Simply put, it avoids the hassle of typing information manually.
Note that these codes are different from NFC codes though the purpose might be somewhat similar.
While you might have heard about QR codes just recently or a few years back, these are actually as old as the hills.
Masahiro Hara first introduced the QR code in 1994.
Hara, the owner of the Japanese company, Denso Wave, wanted a solution that could pass on more information than a barcode.
Nonetheless, he didn’t want to introduce extra, complex hardware in it. As such, he created a two-dimensional bar code, and instead of storing 20 characters, he stored 7,000 with a QR code.
The QR code payment gained traction in China, and by 2016, one-third of Chinese payments were made through QR codes.
This signifies that QR codes became more popular in Asia faster than in the West market. However, the pandemic escalated its use worldwide.
What Is QR Code Payment?
The Scan to Pay method uses a QR code in the form of a barcode image that includes information for the payment provider and the consumer.
It works somewhat similar to a standard POS terminal. You need to scan a code and pay then and there – no prerequisites required.
If you’re a business owner, this payment method might intrigue you even worse. You won’t need to invest in additional hardware.
All you’re required to do is set up a QR code payment on your mobile, and you’re good to go.
How Does QR Code Payment Work?
People often assume that QR codes work like barcodes. To some extent, they do; however, one significant difference sets them apart.
Barcodes can only be scanned from paper. On the flip side, one can scan a QR code from paper and screen.
Perhaps this explains why online stores and smartphone apps both use QR codes. But how does QR code payment work? We’ll explain below.
When scanning a QR code, here’s what you need.
- A mobile phone with a built-in camera.
- A barcode reader that can scan the code.
With a plethora of QR code apps available today, scanning a QR code has become a lot easier. All you need to do is open up the camera on your mobile phone and scan the code.
As soon as you do it, a notification will pop up, and you can open it to finish the operation.
You have the option to pay with Google Pay QR code, Apple Pay QR code, and more. By using one or another payment provider, you can accessibly make payments from the comfort of your smartphone.
Benefits of QR Code Payments
As a business owner, perhaps you’ve gone through the trouble of a card reader experience that involves overpriced hardware, monthly charges, and little deposits.
This is where QR payments come into play; they offer a cost-effective, fast, and easy way to reach out to your potential customers.
Below, we’ll explain some benefits of the QR code payment method.
One of the biggest benefits of QR code payments is that it allows you to make faster payments and serve more customers.
In a fast-paced world like today, it is overwhelming for customers to wait for their products.
QR code payments allow you to speed up the payment process and make customers happy. All a user needs to do is open the QR code through an app, scan the code, and confirm the payment.
Ease of use is another critical factor that makes this payment method outshine the rest. Anyone can use QR code payment. All you need is a smartphone with a camera and an app to scan the code.
Once the user scans the code, the payment will be made on the spot.
Reliable Payment Method
When typing the data manually, there’s a high chance of committing an error. However, QR payments eliminate the probability of such mistakes.
You have to scan the code that consists of unique data in the form of black boxes. So, there’s no chance of inaccuracy at all.
Many people question the security of QR code payments. The truth is, they are highly secure.
Typically, when dealing with several payment systems with varying rules and regulations, it’s hard to ensure everything is safe at both ends.
Nonetheless, QR codes eliminate this confusion. It is just a tool to exchange information, and the payment method encrypts all the data. Simply put, it doesn’t store any customer details. Therefore, you can entirely rely on this payment procedure.
In a fast-growing world like today, the Scan to Pay method perfectly complements the merchant and consumer needs.
It generates payments incredibly quickly, is easy to use, and is pretty secure. If you want to thrive in today’s world, the QR code payment method is a must-have for your business.