QR code payments nowadays have become more famous because of their convenience. All you need to do is scan the QR code for making the payment or receiving the payment. The accessibility of phones and the smart technology is providing good means for making payments. The QR code market is expected to grow up to 60 percent by the end of 2028.
Smart phones are being used for making payments through the QR code. Scanning the QR code with your smart phone camera will direct you to the payment authorisation window where you can enter the payment amount and process the payment. This QR code is used for both making payments and receiving the payments.
QR code acts as the gateway through which a bank will connect with another bank and payments are processed through the platform. Here in this article we discuss the QR code payments, advantages and the usage in business.
What is QR code?
QR code means Quick Response code. In this there is a bar code which has pixels in a series and when you scan this code it will direct you to the payment channel. QR code is used for transferring money from one bank account to another bank account.
These are payments and receipts which are made with the help of a phone. The payments can be made from person to person or business to person or business to business just a scan and by providing authorization money can be transferred in seconds.
QR code is built in the banking app or any other payment app. The QR code can be in a digital form or a printed form. A printed QR code is also a valid code where the QR can be scanned by mobile phone and the payment channels connect to the bank for making the payment. It will initiate the payment and the user can select the payment amount for making the payment.
A QR code is in the form of a square where a structure in the form of grid and mesh appears on the screen. It started to become popular in the year 2017 where the iPhone brought the revolutionary development of QR code.
QR code payments for businesses
The payments are channeled through scanning where it is easy for making the payments. The QR code has an authorization request where it prompts the user to enter certain information such as an amount to transfer and the next page is the authorization page where password or pin code should be entered which will instruct the bank to make a payment.
You can take a print out of the QR code and display it on your business card or business outlet. This tool is a reliable and efficient way to process the payment.
The banks or payment platform apps are offering devices on which the QR code is printed; these can be obtained from the bank or payment platform apps. Once the customer makes the payment using the QR code the device will prompt a message that the payment is received. This is a very helpful tool which provides confirmation of the payment.
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Advantages of QR code payments
QR codes are efficient, fast and reliable payment methods where you can just transfer payment in seconds. Just by scanning and entering the pin number funds are transferred from the sender to the receiver. There is no effort and funds are sent within seconds from one bank to another bank.
The security protection of the smart phone such as one time password, biometric authorisation, facial scanning and fingerprint scanning provide additional security to the smart phone where the banking details are protected.
Below are some of the advantages of QR code payments
Cost efficient
The QR code payments are cost efficient when compared to credit or debit cards linked POS systems. All you need is an app where you can scan the code and make the payment. It is easy, reliable, efficient and comfortable to make payments.
Payments are easy
Quick and efficient payments are processed within seconds using the QR code. Customers can rely on the payment system where the data can be digital proof and authenticated.
Digital Documentation
Receipts and payments data is digitally collected where the customer makes the payments using the QR code and the business entrepreneur prepares digital receipts and payments using the technology. Since all the documents are in digital format the business owner will know inflow and outflow at any given point of time.
Data Security
Data is encrypted and there is no requirement to save any personal data such as phone numbers, names, addresses of the customers. This provides data security for the business and the customer.
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How safe are QR codes?
- QR codes are processed through two factor authentication this means that payments should be authorised two times by entering the pass codes two times.
- QR codes are processed with Bio metrics where fingerprints are scanned, facial recognition scanning is done and other biometric authentication is done during the process of payment while using the mobile phone.
- QR codes payments are stored as a token in a digital wallet. For the purpose of transaction this is converted into a payment instrument. Data theft is not possible with this type of payment.
Take away
QR codes are emerging trends in the payment platforms. There are scammers falsifying the QR code to direct money into their account. Use a reliable payment app or banking app QR code to protect yourself from the scammers.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
