Since Apple introduced active QR code scanners in smartphone cameras in 2017, and nearly all other smartphone providers followed suit, QR code payments have been one of the fastest growing payment methods in the world. They are also one of the most efficient and simple ways to share information and complete online payments, because all users have to do is scan a code with their smartphone – and the numbers reflect this.
1.5 billion people worldwide used QR codes to make a payment in 2020 as usage soared during the Covid-19 pandemic. By 2025, as many as 30% of all mobile users will pay with QR codes, according to Juniper Research. They’re even bigger in China, where QR code payments have been popular since 2010 and account for one-third of all payments today. This figure amounts to USD $1.65 trillion in QR code sales.
Indeed, the pandemic has driven the QR codes’ popularity through the roof, due to the need for payment methods that limit physical contact. In some use cases, QR code payments are better suited to contactless payments, such as in a restaurant setting where customers can scan a QR code to read a menu, order and pay without ever having to leave their seat.
Regardless of the pandemic, QR codes are a secure, cost-effective and faster method to accept payments. Read on to find out what they are, why they’re so popular and how exactly they work.
What is a QR code?
QR code is short for Quick Response code. It’s a two-dimensional barcode that contains information like contact details, a website link, payment information and more. For users, it’s a faster and more streamlined experience than typing in a website URL because all they have to do to access the contained information is scan it.
What is a QR code payment?
A QR code payment works exactly the same way as a ‘normal’ QR code, except when a user scans the code, it brings them to a web payment form. It essentially functions like a POS terminal – customers scan a code with their smartphones and complete the payment on the spot.(If you want to learn more about POS terminal, our video has everything you need to know).
For businesses, QR code payments represent a compelling way to process payments without having to invest in extra hardware – simply set up QR code payments on your smartphone and you’re ready to go.
How do QR code payments work?
When a customer scans a QR code with their smartphone, a notification pops up with a link. The customer clicks the link which takes them to a website, online menu or – in the case of payments – a web payments form.
When you’re processing payments with emerchantpay, you can configure your web payment form however you want. It can be seamlessly integrated with your website – so it has the look and feel of your brand, a feature that makes customers feel more secure when paying – and offer any payment methods that suit your business. Customers can pay by entering their credit or debit card details or by selecting any of the alternative payment methods (APMs) we offer, including Apple Pay, PayPal, Alipay, and many more.
Why are QR code payments #trending?
Part of the appeal of QR codes is that they make payments accessible for a range of businesses across different industries. Fashion boutiques, taxi services, bars and restaurants and more have a lot to gain from adopting this exciting and relatively new technology.
Here are just a few of the benefits of adopting QR code payments:
- Simple, cost-effective setup: All you need to accept QR code payments is a smartphone.
- Accept faster payments: QR codes enable you to take payments from more than one customer at once. And customers can make transactions from start to finish without you needing to be there, meaning you’re freed up to focus on other areas of the customer experience.
- Security: QR codes are one of the safest payment methods. All processing takes place on a card network like Visa or Mastercard that ensures a secure and stable transaction, and all card details are tokenised and encrypted so you don’t need to worry about storing your customers’ personal information.
- Bridge the gap between face-to-face and digital: Adopting QR codes allows your customers to pay with their preferred digital wallets simply by pointing their phone at a code. This removes friction from the overall customer journey and bridges the gap between the real and the virtual worlds – this seamlessness is exactly what today’s consumers expect.
Interested in adopting QR code payments for your business?
emerchantpay works with brands to streamline their payments offering across all channels, online, in-app and in-store, and to scale their operations domestically and cross-border.
Our mission is to connect businesses and consumers everywhere through seamless payment solutions. If you’d like to add QR code payments to your business offering, get in touch with one of our payments experts. We’ll be happy to discuss your needs and help you get set up.