While looking ahead to 2022, it’s important to note the top digital payment trends of previous years, and the adoption of these trends has already changed your customer’s behavior dramatically. COVID-19 pandemic has accelerated the social distancing and cashless payment is the demand of the hour. Consumers prefer digital payment methods over traditional cash payments.
Digital wallets, mobile money payment solutions, QR Code scanning, mPOS, etc are some of the most used digital payment methods your consumers are widely accepting. According to a study by PYMNTS and American Express, the QR Codes payment system is the second most preferred digital payment method with 66.5% of the consumers surveyed followed by a card on file.
Needless to say, the QR Codes payment system is a growing trend in the fintech industry among other digital payment solutions and here we are going to present everything you need to know about QR Code payments. So let’s quickly start with understanding the basics of QR Codes and how do they work.
What are QR Codes? How do they work for you?
QR codes, or Quick Response codes, are quite similar to bar codes and are machine-readable easy scan optical labels that help the user to perform various tasks. They allow their users to make digital payments, navigate particular locations like websites. And can easily access data in the form of PDF or images among others.
Unlike barcodes, QR codes can hold 100X more information and can store larger data. QR codes payments for businesses are actually a step towards customer convenience. Every consumer whether shopping at a retail shop, booking some tickets. Or paying some bills is using QR Codes scanning for making purchases.
Hence, QR codes payment shows great potential to almost every business and is one of the top fintech predictions trends. QR codes payment systems are quite simple to use.
In order to use a QR code payment system, a consumer simply a banking platform, scans the code with a smartphone using the camera, confirms the payment amount. And receives a receipt for acknowledgment through registered e-mail. When you scan 2-D codes, the scanner decodes the info store in it which can be use for making payments.
What are the types of QR Codes?
The QR codes are broadly classified into two categories as follows:
Dynamic QR codes payments
In a dynamic QR code payment system, QR codes are editable that contain extra features like passwords details, amount details, and scan analysis. Dynamic QR Codes are generate for specific purchases and for some specific purposes. They are also call disposable QR codes.
Static QR codes payments
In a static QR code payment system, unchangeable merchant details including payment URL are present. The purchase amount is entered by the consumer before every transaction. The QR codes are created just once and can be printed and posted to the cash counter at the merchant’s desk. These types of QR codes are also known as reusable QR codes.
As there are two types of QR code payment systems, there are two different modes of payment too on the basis of the procedure of payment. They are as follows:
Customer-presented mode: In this type of mode, the consumer displays codes on their smartphones or payment device. And merchants scan them for payment for their purchases.
Merchant-presented mode: This is the most commonly use mode of payment where the merchant displays the QR code in printed or digital format. And customers scan them from their smartphones to make payments.
What are the benefits of a QR code payment system?
There are numerous advantages of using QR codes payment system for your business. Some of the major benefits of a QR code payment system are as follows:
They are highly convenient
The vendors can set up the QR codes for their business and consumers can just scan and pay for the purchases. This is quite a simple, convenient, and easily accessible method.
Quick money transactions
QR codes money transferring is very fast as the amount of money scanned can be credited to the merchant’s account within 1-3 seconds after the transaction is conducted. And payment confirmation is also faster than other payment methodes.
Ease of accessibility
This is a highly accessible method as consumers as well as merchants can use their smartphone cameras. And a banking app to make their QR code payments. QR codes payment systems are Scan & Go solutions where the payment can be done anytime and anywhere the user wants to do.
Secure and safe to use
In order to integrate the QR code with the smartphone or app all the necessary security steps are take care of. The user need not enter the whole banking details and hence it makes the payment more secure. And the solution more reliable.
Final Words
Almost every industry is using QR codes as merchant payment solutions for their business. All the utility companies, restaurants, e-ticketing companies. And even the street vendor is adopting this payment method with the above-discussed benefits. With the penetration of smartphones and the internet, digital payment methods are witnessing high growth in the fintech sector. And QR code are showing momentum in technology.
If you want to integrate this technical advance payment method in your business, its the right time to develop a scan-to-pay application and integrate the QR payment system right away in your business.
