In recent years, the use of QR codes has evolved from a fashionable trend in online business, which is used in everything, to a rather systematic process. It is similar to the usual barcode but is recognized by any camera of a modern smartphone. Its distinctive advantages are the possibility of offline use, speed of reading, and minimum involvement of the seller, as the buyer can make the payment himself.
No hardware or software is needed to use this technology. What’s most interesting is that such barcodes are being used for QR code payment today. How does it work? Let’s figure it out together with a team of experts from PaySaxas.
Understanding QR code payments
QR code payments have emerged as a game changer in the world of digital transactions. With the growing adoption of smartphones and seamless internet connectivity, this form of transaction has revolutionized the way we make payments. QR code payments are a contactless payment method that allows users to make transactions by scanning a barcode with their smartphone.
These codes, which consist of black squares arranged on a white background, can store a significant amount of information, including payment details. For the first time, payments via QR code were applied in South Korea. In the late 2000s, the online grocery retailer Tesco launched a virtual supermarket in the Seoul subway. It became a QR code for business payment.
A few years later, Tencent and Alipay launched payment systems based on QR codes, which were hugely popular among users. Add to that the payment solutions from WeChat Pay and we get an incredible figure. Ready? In 2017, Chinese residents spent more than $15 trillion using mobile payments and QR codes.
Paying with QR code
You may wonder how QR code works for payment. So, it’s very simple. By simply scanning the QR code displayed at the merchant’s point of sale, users can authorize payment and complete the transaction securely and quickly.
All you need to do is have a mobile device with a camera handy. Point it at the combination indicated at the point of purchase and follow the instructions of the payment system.
Accepting QR code payments from customers
Accept payments from customers using a QR code in both online and offline sales channels without the use of POS terminals. That’s the reality today. All the customer needs to do to pay is scan the generated QR code with the payment link embedded.
Thus, you make the payment without unnecessary actions. Start accepting and authorizing a QR code payment for business now. And you will realize that this is the best option for the development of your business.
The two types of QR codes: Static and dynamic
To date, there are two types of such codes in the world: static and dynamic. What are their differences and peculiarities? Let’s find out together with PaySaxas experts.
| Static QR code | Dynamic QR code |
| Cannot be edited once created | Can be edited even after printing |
| Do not offer QR scan tracking | Offer QR scan tracking & analytics |
| Cannot be used for online retargeting | Can retarget users online |
| Have a long and complicated URL | Have a short and clean URL |
| Take longer to scan | Take less time to scan |
Whichever option you choose, rest assured that the QR code for business payment will improve your sales. This new form is winning over new people every day and improving the lives of customers.
Distinguishing between merchant-presented mode (MPM) and customer-presented mode (CPM)
In the direction of QR code payment, two other concepts are important to understand. The MPM or merchant-presented mode is where a transaction journey requires a customer to scan the merchant’s static or dynamic QR code to initiate a transaction.
The CPM or customer-presented mode means the opposite. Here, the merchant is required to scan the customer’s static or dynamic QR code to initiate the transaction. The use case depends on the business owner. It’s been taken care of. Let’s keep moving.
Types of businesses benefiting from QR code payments
QR code payment is a universal and convenient tool for your business, regardless of the format of the enterprise. For example, to accept payment from a visitor in a coffee shop, it is enough for an employee of the establishment to show him an automatically generated QR code on the smartphone screen.
The client has installed a mobile application with the possibility of QR payments. Payment is very fast and there is no need to install a POS terminal, cash, or a bank card — it is enough to have only a smartphone. What other types of businesses benefit from implementing this form of payment?
- Retail sector
- Restaurants and food service industry
- Service providers
- Food trucks and street vendors
- The arts, entertainment, and travel sector, etc.
These are just a few obvious options where QR code payments have changed the way business is done. Now, customers don’t have to worry about forgetting their wallet. It is now not needed at all. Your phone is always with you. Use it to make money transactions.
Advantages of QR code payments for businesses
It is not necessary to draw attention to the disadvantages of QR code payment. The positives of this format for businesses will outweigh any nuances. Let’s look at them in more detail.
Instant, touch-free payments
Now you don’t have to wait to be approached or served. Choose what you like, order and pay here and now. By pointing the camera at the code, you quickly pay with your card. Everything is easy and affordable, and most importantly instant.
Ensuring secure and reliable transactions
Everything happens by reading a specially generated code. It can be prepared by the seller himself. It’s unique. Therefore, you should not worry about the protection of your data. The seller has already taken care of it.
Enhancing customer loyalty
QR code payment will give you the approval of the buyers. It’s convenient and easy, which is why most of today’s customers are more loyal to businesses using such payments.
Remaining competitive in the digital age
You don’t have to get hung up on a one-size-fits-all payment format. The world is not standing still but is actively moving forward. The same happens with payment formats and customer commitment to them. The market competition is won by those who are ready to offer modern, innovative, fast solutions. Payments by QR code are exactly what businesses need.
Important considerations before adopting QR code payments
Before implementing such a payment method, analyze whether it is suitable for your type of business. It’s not a trifle. Wrong approach to the choice of transaction tool, reducing customer sympathy and loyalty to your business and product. If you do put this method on your list of options for clients, familiarize them with it.
Clearly show them how to use a QR code for payment. This will increase your audience’s familiarity and help them make a quicker choice. Describe and show how fast and easy it is to pay for goods and services with a barcode. This is really what the modern generation needs.
How to understand that your business is ready to embrace QR code payments?
QR code payment UK is a whole new format for paying for products and services. Therefore, it is not surprising that many entrepreneurs look at this option with caution. Whether to implement a QR code payment option is up to the type of business as well as its customers.
Of course, these days, the instant transaction option seems attractive. If you realize that your customers can and want to pay for products or services online contactless, then by all means generate a code and offer this option to everyone. You will see how much your business will improve.
Conclusion: The transformative role of QR code payments in business transactions
The development of technologies makes our life much easier, and in particular, makes payment for services and purchase of goods on the Internet a fast and safe process. The method of QR code payment is available to all smartphone users, for this, you just need to point the camera at the QR code.
Make payments quickly and safely, because the payment system by QR code does not require interaction with terminals, where you need to manually enter the PIN code of your card. QR is convenient and interchangeable for the merchant.
Using this method to make payments, you don’t need a technically customized website, payment is made simply by QR code. Choose a modern fast and secure method to make payments for your business with better results. QR scanning is available for all Android and iOS smartphone cameras.
Frequently asked questions about QR code payments
What is a QR code payment?
QR code payment for business is a contactless payment method that allows users to make transactions by scanning a barcode with their smartphone.
Are QR Code Payments Safe?
QR codes are generally safer than manually entering a website link in a browser application, since the latter is more prone to human error. However, the ultimate safety of the transaction depends on the consumer’s discretion.
How Do QR Code Payments Work?
A payment QR code redirects your smartphone’s browser to a hosted payment page or opens a mobile payment application for you to authorize and complete a transaction.
Who can use QR codes?
Business owners and individuals use QR codes today, and generating a code does not take more than a few seconds.
