We’re taking advantage of the conveniences the internet brings into our lives, replacing old habits with newer, faster, and more practical ones. The increasing use of QR codes, which has become quite popular recently, is a testament to this change.
Today, we see many businesses integrating QR codes into different processes as a growing trend. One of the areas where QR codes are frequently used is in payment processes. Companies that aim to provide an easy payment experience to their customers are adding QR code payment options to their payment processes. So, how can companies use QR code payments? In this article, we will explore what QR code payments are, how they work, and their advantages for consumers and businesses.
What is a QR Code?
The term QR code, “Quick Response,” initially emerged as a two-dimensional matrix barcode type created in 1994 for the Japanese automotive industry. QR codes are barcodes that allow users to retrieve information or perform a transaction contactless by scanning the relevant QR code with their smartphones or devices.
Research shows that today, approximately 6.6 billion people worldwide use smartphones. In Europe, 86.66% of smartphone users report having scanned a QR code at least once. QR codes offer a practical and fast user experience as they can be scanned and read by almost any smartphone.
With the widespread use of smartphones, the use of QR codes has expanded. For example, many restaurants and cafes have chosen to display their menus via QR codes instead of providing physical menus for the convenience and safety of their customers. Similarly, many businesses are including QR code payment methods in the payment options they offer to customers, both online and in face-to-face transactions.
What is QR Code Payment?
The rapid developments in technology have also changed our payment habits. Today, users not only prefer traditional payment methods like cash and cards but also opt for practical methods such as link-based payments or QR code payments, both in online and face-to-face shopping. As a result, more and more businesses are including QR code payments in their payment methods.
According to research, the total transaction value in the digital payments sector is expected to reach 8.49 trillion US dollars by the end of 2022. QR code payments have a significant share in online payments.
To answer the question, what are QR code payments? It can be described as a method in which the payment process is initiated via a URL link contained in a QR code.
How Does QR Code Payment Work?
By scanning the QR code, users are directed to a payment portal or page preloaded with a link. After clicking on the relevant link, the user enters the payment information on the page that opens and makes the payment.
For a QR code to work, at least one of the following is needed:
- Smartphone or tablet with a built-in camera
- A barcode reader that can scan QR codes
Today, smartphones with both iOS and Android processors can scan QR codes directly from the main camera app as long as they are running the latest software versions. For this, users must open their camera and focus it on the QR code. To complete the payment process with the QR code, a push notification begins on the screen where the code appears. The payment process is completed by filling in the required information on the redirected payment page.
The usage areas of the QR code payments are similar to those of the link payment method. You can find detailed information on the usage areas of link payment and QR code payments here.
What are the Advantages of Paying with a QR code?
As it is known, especially after the COVID-19 pandemic, contactless payment habits have become widespread in our country and the world. Today, almost all credit and debit cards, even food cards, have contactless payment features. The fact that the payment can be made contactless is why users prefer QR codes. We can list the other advantages of QR code payment as follows:
- Considering how widespread the use of smartphones is, any process involving QR codes is very accessible because there is no need for an extra device other than a smartphone to pay with a QR code.
- QR code payments are a fast and practical payment method. Customers of businesses that want to receive payment with this method can pay within seconds.
- It does not matter whether customers carry cash or cards with them at the time of payment. It is enough to have a smartphone with them to complete the payment process.
- Since part of the code is readable even if it is damaged, it is a method that provides great convenience for businesses operationally.
As can be seen, the QR code payments enable all online transactions made with debit or credit cards to be made with smartphones. Thus, it is preferable for both consumers and businesses.
How Can Businesses Accept Payments with QR Codes?
There are different ways for businesses to accept payments with QR codes. For this, they can create a QR code to redirect to their payment pages, or they can take advantage of the QR code payment facilities of banks or payment institutions. For businesses, the usage area of the QR code payments may vary depending on the scale, sector, or customer segment of the company. For example, a business that wants to offer different pricing to its customers for each product or service can facilitate its operations with QR code payments. Likewise, a company that wants to sell its products through social media channels can quickly receive payments with a QR code.
Another possibility for businesses that receive online payments to accept payments with QR codes is to use a payment orchestration platform. For example, with the QR code payment option provided by the Craftgate payment orchestration platform, businesses can offer their customers an easy and practical payment experience. This does not require any integration process.
Businesses can create a unique QR code for the relevant products or services after entering the information about the products or services they will receive payment for on the Craftgate merchant panel. After sharing the code with their customers, they can receive payments quickly and easily.
In this article, we explained what QR code payments are, how they work, and their advantages.
