Good things happen when you make life easy for your customers. And one process that is especially important for companies to streamline is the payment process.
In recent years, consumer preferences have trended toward faster, more convenient payment methods, such as tap-to-pay and Apple Pay.
But these aren’t the only swift and convenient payment options that you can offer to your customers. With QR Codes, you can give your customers the ability to pay using their mobile wallet and a quick smartphone scan—that’s about as fast and convenient as it gets.
To help you make your company’s checkout process a breeze, here is everything you need to know about how QR Code payments work and the benefits that they offer.
Why businesses use digital payment QR Codes
QR Codes (short for Quick Response Codes) are 2D barcodes that can store a wide range of information. When users scan a QR Code with their smartphone camera or a QR Code scanner app, they get instant access to the information stored in the code.
While QR Codes are versatile tools that have been around since 1994, they’ve grown immensely in popularity over the past few years. Now, companies use them for everything from marketing to business cards to payments.
When it comes to payment processing, QR Codes allow customers to instantly pay for a product or service using their mobile device’s digital wallet. All they have to do is scan the QR Code, and it takes them straight to the payment portal.
Here’s why this payment solution is so convenient and beneficial for businesses and their customers.
Customers easily recognize QR Codes and know how to use them
Practically everyone knows what QR Codes do and what they look like. This is especially true now following the rise in popularity that QR Codes experienced during the COVID-19 pandemic. In fact, nearly 95 million people will scan QR Codes this year alone.
Plus, all you need to scan a QR Code is a smartphone—which the vast majority of people have on them at all times. And unlike NFC technology, which requires physical contact and has a minuscule radius, you can even scan QR Codes from a distance.
Uncover insights about consumer behavior
Placing a QR Code on this branded vehicle enables marketers to estimate how impactful this clever marketing tactic is.
QR Codes don’t just display information when they are scanned—they can collect information as well. And anyone who knows the value of customer data understands just how powerful this can be.
You can track QR Code scans and automatically collect a lot of insightful data about customer behavior, including things like location, time of purchase, device used, and more. This data helps you form a better understanding of your customer base, which you can use to further optimize your sales and marketing processes.
Dynamic QR Codes provide greater versatility
Dynamic QR Codes are a more sophisticated variation of traditional Static QR Codes, and they offer a lot of extra functionality and versatility. With Dynamic QR Codes, you can track how customers engage with the QR Code and edit the QR Code data or destination after it’s been generated.
As mentioned earlier, you can use QR Codes to uncover insights into customer behavior, and this is only possible with Dynamic QR Codes. But the ability to edit the destination URL or the information linked to the QR code without changing the code itself is a big benefit too.
It allows you to reuse existing QR Codes rather than having to create new ones anytime you need to update the QR Code’s destination.
Are QR Codes a safe way to handle payment transactions?
Any time you collect sensitive payment information from your customers, security is a top concern. Just consider the fact that 60% of all credit card holders have been the victim of some type of credit card fraud, and you’ll understand how big of an issue this is.
Fortunately, QR Codes are safe by design, so using them for payment is just as secure, if not more so, than using credit card readers and other payment platforms. The content inside QR Codes is only readable by machines, and by virtue of their design, QR Codes cannot be hacked.
No payment system is completely invulnerable to fraud, and you still have to be cautious when it comes to protecting customer data. However, QR Codes provide a secure payment method that’s no riskier than accepting card payments or any other digital payment method.
How QR Codes facilitate payments
Now that you’ve seen why small businesses and large companies alike are increasingly using QR Codes to collect payments, let’s get into the how.
Thanks to the versatility of QR Codes, there are numerous ways to set up a QR Code payment system. This means that the specifics will vary depending on what you want your system to look like and the type of QR Code that you’re using. Generally speaking, here’s what the process entails:
- You’ll need to start by generating a unique QR Code that directs shoppers to a payment gateway. You can do this quickly and easily using an online QR Code creator, such as QR Code Generator PRO, and you can even customize what the QR Code looks like and add your own branding elements.
- Next, you’ll need to display the code so customers can scan it. There are several ways to do this. Lots of businesses choose to laminate the QR Code and affix it to their counter near their point-of-sale (POS) system, but you can also print QR Codes on receipts, display them on signs, and more. (More on specific use cases for digital payment QR Codes up next.)
- Once your QR Code is generated and displayed, that’s it! Customers can now scan to pay using their smartphone.
3 common uses for digital payment QR Codes
There are numerous ways companies can use QR Codes to improve the customer experience during checkout. If you need a little inspiration, check out these ideas for leveraging QR Codes to create a more convenient and streamlined payment experience.
