The traditional banking and financial systems had a very traditional approach to offering relevant services. The advent of fintech companies and digital payment systems has revolutionized how people transact. The shift towards online payment platforms has been driven by a consumer-centric approach that eases people’s worries when it comes to making payments. From digital wallets to net banking, there are many ways to transfer payment in today’s era. QR code payment system is also among the latest developments in the financial arena. Let’s dig deeper to learn more about what it entails.
What is a QR code payment system?
The Quick Response (QR) code payment system is a contactless online payment mechanism that allows people to scan to pay using a QR codes. It is a type of 2D barcode that smartphone software can easily read. The scan-to-pay method is convenient for users and reduces the chances of payment being transferred to a different user. QR codes appear a bit similar to other barcodes that you might have seen. A QR code can store a large amount of data and be scanned from screens and papers. One of the main advantages of QR codes is that the information can be encrypted, making it very safe to use for making payments.
The working mechanism for QR codes
QR codes are very dynamic as they can be read through both screens and papers, unlike a linear barcode. The traditional linear barcodes require a laser barcode scanner and can only be scanned from paper. To use a QR code for payment, you need a camera-equipped smart device and a bar code reader app that can scan the codes. Modern-age Android and iOS devices have intrinsically programmed cameras to recognize and scan a QR code. All one needs to do is simply place the camera to focus on the QR code and wait for it to scan.
How are QR codes used for payments?
There are multiple ways in which QR codes can be used for making payments. It can be easily processed in any of the below-mentioned ways.
- Scanning a business QR code through a smartphone
One of the most commonly witnessed QR code payment processing involves scanning a business QR code to make a payment. Customers open a relevant QR code payment app and scan the code shown to them while purchasing. This QR code could be at a shop’s checkout counter, on a product, paper bill, or website.
- Business scanning QR codes on customer’s screen
Customers have to open the app and show the unique QR code for payment. The store reps will scan this QR code for finalizing the transaction.
- App to app payments
Here, both parties will open relevant payment applications to facilitate the transaction. The customers can easily make the payment by scanning the QR code displayed on the store’s app. Once the customer verifies the amount, they process the payment.
Benefits of using QR codes
There are plenty of benefits to using QR codes for online transactions. The two most important benefits are listed below.
- Quicker transactions
One of the most important benefits of using QR codes is quick payments. You need to scan the code using your camera or application, and within seconds, it is processed.
- Secure payment method
QR code as a payment tool is highly secured since all the data is encrypted. The customers can safely scan to pay without worrying about leaking their confidential payment data.
QR code scan and pay method is lucrative and saves time. But before downloading, make sure you download a reliable app.