Will 2022 Be the Year of QR Code Payments?
QR Code Payments Explained: Will 2022 Be the Year of QR? For restaurants and small eateries there’s no turning back, learn how to streamline your business via QR.
COVID has ushered in significant changes and disruptions to industries around the world. And with those changes came the resurgence of QR Code Payment – a contactless solution that bridges the gap between physical and digital experiences.
In addition to being the first mobile-first technology to reduce connectivity and align with security measures, we’ve seen QR codes chosen as a unique marketing tool. You see them everywhere – on the packaging, billboards, business cards, gyms, museums, and restaurants.
Brands are using QR codes in several ways, from sharing valuable information, discounts, and music to providing exciting augmented reality experiences. Contactless payments are no longer an alternative — they are the standard. Both businesses and consumers are now more aware of the potential and functionality of this technology and are convinced that QR codes are not going anywhere.
Why were QR codes not popular Pre-pandemic?
Previously, QR codes were not popular because smartphones were not equipped with the original QR scanning capabilities. Updates from Android and iOS changed this and continued to expand the possibilities of original QR code scanning.
The release of Apple’s iOS 14 update has had a positive effect. This allows iPhones to detect and scan small QR codes, and it also enables the scanning of QR codes wrapped around the object. But the issues that still exist are centered around the security and accessibility of QR codes.
Security risks with QR codes
Due to numerous phishing scams and fraud incidents, people are wary of scanning QR codes due to potential security risks. Secure QR code platforms solve this problem. Using features like custom domain and custom SSL, customers can rely on QR code URLs due to their custom branding.
QR code accessibility
Not everyone has a smartphone that they are not familiar with the technology to use regularly, i.e., in restaurants, grocery stores, and malls. According to YouGov, 14% of the US population thinks QR codes are difficult, 18% of people have never heard of them, and about 20% of those who confuse QR codes are over 65 years old.
A few paper options and assigned staff are the right scan and go self-checkout payment solution to this problem to help customers who cannot use QR codes.
How do QR Code Payments work?
The foremost question you need to Know about QR code payments (Quick Response) and that it is a two-dimensional code consisting of black squares and bars on a white background. When you scan a QR code, the scanner decodes its information, which is used for payment.
How many types of QR codes are there?
It is necessary to learn the difference between static and dynamic QR codes.
Dynamic QR Code Payment – In this mode, the QR code is editable and may have additional features like scan analysis and password. The decoded information can inform the merchant, such as the customer’s location or the type of scanning device. The dynamic QR code also indicates the transaction amount, so customers do not need to enter the amount manually.
Static QR Code Payments – This payment type involves an unchangeable code that includes the payment URL. When the consumer scans the QR code, he must add the amount manually. Merchants with a static QR code have a QR code for all payments, and a QR code generator can generate them.
What are the QR payment modes?
There are two different payment modes:
- Customer-submit mode means customers display the code on their devices, and merchants scan them for payment.
- Merchant-submit mode means that the merchant displays a QR code which the customer scans for payment. The merchant can use the payment app to generate a payment QR code. You can develop these apps with the help of skilled, dedicated software development teams.
QR payment process
Here the QR procedure is applied to the model offered by the merchant and can be seen in the image below.
Image Source: MasterCard
- The merchant (seller) generates a QR code which the user can scan for mobile payment. The application requests a transaction from the card issuer.
- Payment results are transmitted to both the customer (from their card issuer) and the merchant (from their payment network). Merchants and sellers can now see the full results of the transactions displayed to them.
What are the advantages of a QR code payment system?
There are several benefits to using QR code payments for your business. They include:
- It’s convenient – the seller can set the code, and customers can pay for their products or services anytime, anywhere.
- It’s cheaper to set up – it’s cheaper to launch QR code-based mobile payments for your business than to add a manual point-of-sale tool.
- Easy to integrate with new financial tools and instruments – When you access reputable QR code payment solutions, you can combine payment explications and even add financial instruments like cryptocurrency.
- It’s fast – QR codes, online payments, or mobile payments are faster than many traditional payment methods.
QR-code – a modern means of payment
While QR codes are gaining traction in the US, UK, and Latin America as a form of payment, China has been using them successfully for years. It is fair to say that QR payments have replaced cash as this country’s preferred mode of payment. This is true at all levels of the business, from street vendors to high-end stores, going completely beyond credit and debit cards.
Therefore, China is rightly considered ground zero for QR code revival as no other country has extensively used QR payments. In 2018 alone, according to the Mobile Money Program, China’s business and consumer mobile payment volume reached the US $ 41 trillion.
The popularity of QR codes in 2022
In 2021, Beaconstac’s QR Code generator witnessed 63 million scans. Based on the rate of growth and the predictable levers, we can expect this number to double in 2022.
QR codes initially came back by appearing as a digital menu in restaurants for safe and contactless meals. Fast-forward a year later. They are also used to display vaccination certificates as proof of vaccination for travel and entry points.
Consumers had to adapt to these new changes and understand how the technology works and what they would do when they saw the QR code. Digital menus and vaccination certifications have been instrumental in turning QR codes into the mainstream technology we know and love today.
This was a game-changer for brands as they found new and better ways to communicate with their audiences and build meaningful relationships. QR code is a smart technology that can be tailored to the needs of each business.
The benefits of using QR codes and the ongoing movement towards the secure cashless mode of payment indicate that QR codes will become more popular in the future.
According to recent studies, the QR code users will be expected to increase to 2.2 billion by 2025. Users in the US are expected to grow by 240% from 2020 to 2025, which the introduction of QR code payments could partially boost.