What is a QR Code?
A QR Code, or Quick Response Code, is a two-dimensional barcode that has become crucial in the increasingly connected and digitalized. Initially created in Japan for tracking parts in the automotive industry, QR Codes have evolved to serve various functions, with payments being a significant use case.
There are two main types of QR codes: dynamic and static. Active QR Codes are flexible and change with each use, while static QR Codes contain fixed information. This distinction applies to various scenarios, such as payments, marketing, inventory, etc.
How does a QR Code work?
QR Codes work by encoding information in a two-dimensional space using a grid of black squares on a white background. When you scan a QR Code with your smartphone or other compatible device, it interprets the pattern and reveals the information contained within. In the case of payments, this information often includes transaction details and the recipient's payment information.
How are QR Codes used in payments?
QR codes revolutionize payment methods, offering convenience, security, and efficiency for businesses and customers. They have become integral to modern payment systems, facilitating seamless transactions in diverse scenarios and generating great benefits:
Diverse Payment Options: QR codes are used in various payment methods, such as contactless cards, digital wallets, mobile payments, and more.
Quick Payments: QR code payments allow swift transactions, reducing customer checkout times.
Contactless Payments: Customers can make payments without handling cash or cards, enhancing safety.
Touch-Free Transactions: They eliminate the need for physical interaction with point-of-sale devices.
Online and In-Store: QR codes work for online and in-store purchases, providing versatility.
Peer-to-Peer Transfers: Users can send money to friends and family with a simple scan.
Bill Payments: QR codes on invoices enable convenient bill payments with smartphones, which is helpful for subscription business models.
Enhanced Customer Experience: The convenience of QR codes improves overall customer satisfaction.
Customized Payment Forms: Businesses can tailor web payment forms for a brand-consistent look and feel.
Reduced Costs: QR code payments can be a cost-effective solution for businesses and customers.
When choosing between dynamic and static QR Codes to be integrated into payments, there's a clear preference.
Dynamic QR Codes offer more control to merchants as they can encode essential transaction details, such as the payment amount and merchant's name, eliminating the need for manual entry by customers.
This convenience fosters a smoother payment experience and provides businesses with complete control over the payment amount.
In contrast, static QR Codes, while facilitating online transactions, lack this flexibility and require manual input of payment details by customers. With this advantage, dynamic QR Codes are increasingly gaining popularity among merchants integrating them into their payment systems.
Why is a QR Code important for APMs?
QR Codes have gained prominence in Alternative Payment Methods (APMs) due to their versatility and convenience. Since traditional payment methods, like most cards, rely on other features, alternative and local payment methods use QR Codes to simplify their usability and enhance user experience.
By incorporating QR Codes as a feature, QR Codes can compete with more traditional payment methods. Some examples include instant payment methods like Pix in Brazil and UPI in India. They have become prevalent in their respective countries and are examples of how an alternative payment method can help shift an economy and foster financial inclusion.
How to implement QR Code payments in a business
Implementing QR Code payments in a business depends on which payment method is being chosen. However, four general rules must be followed:
Generation: To accept QR Code payments, a business must generate unique QR Codes for each transaction. These codes can be linked to specific products or services.
Integration: The generated QR Codes must be integrated into the business's point-of-sale system or payment gateway. This ensures that the company can receive payments and track transactions seamlessly.
Promotion: It's essential to educate customers about the QR Code payment option and encourage its use. Businesses can promote this payment method through various channels, both online and offline.
Security: Implement robust security measures to protect Mthe business and the customers. QR Code payments should be secure and encrypted to prevent fraud and unauthorized access.
For businesses looking to simplify QR Code payments and have all the above-mentioned steps in order, counting on a top-performing and reliable payment provider is the best way.
EBANX offers payment solutions that streamline your payment process in emerging markets and help you expand your operations.
You'll be able to offer several payment methods, including local and alternative payment methods with QR Code features, ensuring a seamless experience for your customers and stakeholders.