QR Code Payments

The pandemic has brought concerns regarding the earlier used payment methods. Since the coronavirus onset, people have been looking for contactless and secure payment options. Due to this, merchants have come up with ways to accept cashless payments. Nowadays, you can scan to pay for any item.

A QR code is a quick and smart response code and includes information about a place, individual etc. People can even pay with QR codes as recently, and every merchant has started supporting cashless payments.

How Does QR Codes Work?

When a QR code is scanned, the black pixels on it are decoded by the software on your device and converted into a string of characters. Depending on that, your device may open a website, payment confirmation link etc. Thus, it allows you to pay with QR code conveniently. 

What are the types of QR codes?

There are two types of QR code, and it is necessary to understand their difference-

  • Dynamic QR Code- The QR code can be edited and can contain additional features such as scan analysis and passwords. The decoded information can convey the details to the merchant. They also convey the transaction amount so; it is easy for you to pay with QR code.
  • Static QR Code- This type of code contains unchangeable information that includes the payment URL. You have to scan to pay and enter the amount manually. Merchants with this type of QR code needs only one for all the payments. 

QR Payment Modes

There are two QR code payment modes:

  • Customer Presented Mode- Customers present QR codes on their devices, and the merchants scan the code for payment. 
  • Merchant Presented Mode- The merchant presents the QR code, which the customers scan for payment.

Merchant Presented Mode Process

Usually, the merchant presented mode is followed by most people. The process is as follows:

The merchant generates a QR codes which the customer can scan to pay from their device. The app through which the scanning procedure is done sends a transaction request to the card issuer.

The results are transmitted to both the merchant and the consumer and is displayed on their device.

Advantages of Using QR Code

There are many benefits of following QR code payments-

  1. Convenient- Most merchants have a QR code payment option nowadays. Hence, it is suitable for consumers to pay with QR code for their purchases without using cash.
  2. More Information- QR codes can hold different types of information such as the URL of a business website, phone number, link to download an app etc. 
  3. Easy to Read- Consumers can scan to pay from any angle. Ideally, aiming at the scanner is not necessary. 
  4. Secure- QR codes have top-level security as it is a tool that we used to share information. Any payment or information shared through QR codes is encrypted. 
  5. Error Correction- QR codes can work even if they are up to 30% damage as they have a high error correction margin. The code works even if it is unreadable. 

QR codes provide a lot of benefits not only to the consumer but also to the merchant. In times like these, due to the COVID 19, the contactless payment option is the best.

Industries that Use QR Code Payment Option

Recently, the demand for QR codes as a payment option has increased drastically. Several industries use QR codes for payments-

  • Utility Services Company- Companies that provide utility services fix QR codes into their customer’s bills. The consumers can proceed to make the payment by scanning the QR code.
  • Restaurants- Restaurants and food chains are starting to use QR codes to provide customers with access to the food menu by scanning so that they can review it whenever they want.
  • Street Vendors- Most street vendors use QR codes to make it easy for the customer to pay quickly and efficiently. They can print codes for each item so that the customer can read the product’s description. 
  • SME’- Small and medium-range businesses use QR codes for payments. The consumer has to scan the QR code presented by the merchant. The vendor sends a receipt to the consumer’s device, and then the customer approves the payment. 

QR codes offer easy payment options to several businesses and are widely used by many industries. 


This technology has gained interest from all over the world. The benefits derived from using QR code payment are leading people towards a world with secure cashless no contact payments. As a result, QR codes will become more popular shortly.

By Adam

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