QR Code Payments - How They Work and Why QR Codes Will Revolutionize Contactless Payments
QR code payments are one of the most efficient and easiest ways to make online payments. QR code payments first took off in 2017 when Apple introduced active QR code scanners in smartphones. Statistics show that the use of QR code payments will increase by 22% by 2025 compared to 2021.
Also, a survey by Mobilieron found that around 67% of respondents find that QR codes make life easier in a contactless world. So if you want to provide a user-friendly payment experience in-store or in e-commerce, a variety of payment options, such as QR code payments, is essential.
At Payrexx, QR codes and digital wallets have long been among the most popular payment methods our merchant:in use to accept payments. But why are QR codes such an effective contactless payment method? And how do QR code payments work in the first place? We will explain that for you in this article.
What is a QR code?
QR is the abbreviation for Quick Response. It is a two-dimensional barcode that contains information such as contact details, a website link or payment information.
QR codes can be used for a variety of purposes - they can guide customers to menus, provide access to websites, or even enable payments.
Using the QR code is as simple as scanning it with your smartphone camera, without the hassle of typing information into your phone.
What is a QR code payment system and how does it work?
At first glance, you might think QR codes work like barcode scanners, but there's one crucial difference: QR codes can be scanned both on paper and on screens.
This versatility of the QR code makes it very practical for use on all types of surfaces as well as on the screen of a phone.
The payment works like a normal POS (Point of Sale) terminal: The customer scans the code with the smartphone and as soon as the camera recognizes the QR code, a push notification is displayed that forwards the customer to a secure payment screen where he/she can choose whether to pay with Mastercard, Visa, PostFinance, TWINT, Apple Pay, Google Pay, Samsung Pay or one of the more than 200 payment methods we offer at Payrexx.
With a payment provider like Payrexx, businesses can turn their smartphone into a POS terminal and accept payments without investing in hardware. The QR codes can also be printed out and used or set up on site.
Are QR codes a secure payment method?
QR code payments are one of the most secure payment methods. This is because they offer three levels of security:
Debit/credit card
Your customers' payments are made through a card network such as Visa or Mastercard, which ensures a secure and stable transaction.
Local payment methods
By using local payment methods, you give your customers the option to pay using their preferred payment method. When your customers can use the service they know and trust, they will also feel secure in their payment transactions.
Tokenization
QR code payments are tokenized and encrypted, which means that no payment data is stored with the merchant:inside.
These layers of security make it incredibly difficult for fraudsters to steal personal information or make a:n customer a victim of fraud.
How can I make a QR code payment?
Making a QR code payment with Payrexx is very quick and easy.
As a user:in, you just need to scan the QR code with your phone and a notification will be displayed.
Once you click on the notification, you will be redirected to a separate payment page where you can select your preferred payment method.
At Payrexx we accept over 200 payment methods for you to choose from. As a merchant:in, you can offer your clientele many different payment options and thus appeal to a much broader demographic.
Learn more about the available payment methods at Payrexx.
What are the advantages of QR code payments?
Easy setup and no expensive hardware
If you're trying to keep costs down or looking for a more versatile solution, bulky card readers are a costly way to take payments.
QR codes make it ten times easier and faster to set up a payment solution. If you use a QR code payment system like Payrexx QR Pay, you can generate a personalized payment QR code in just a few clicks and start accepting payments immediately.
In addition, you no longer have to keep track of different systems and manage multiple Excel spreadsheets. With Payrexx, you have all your payments on a single dashboard.
Take payments faster
These days, customers don't have the patience to wait for their items - whether it's an online delivery or an in-person order, QR code payments help you speed up payments, increasing the number of customers you can serve.
Better security
When using multiple payment systems, all with different rules and regulations, it is often difficult to ensure security.
With Payrexx, you have a single centralized payment system that ensures payment security and puts it at the top of the list.
QR code payments are also inherently more secure than other transactions, such as with cash:
With a QR code payment, all information is encrypted and no customer data is stored in a file.
Payrexx is also PCI Level 1 compliant, which means that we meet the highest security requirements of the credit card industry.
What are the most popular uses for QR codes?
QR codes are popular in many industries and situations:
Hospitality: QR codes are popular in restaurants or hotels - guests can scan a QR code at their table or room and then order and pay for food or other services online.
Flyers: QR codes can be placed on flyers distributed on the street or indoors. When these are scanned, consumers:inside are taken to an online store with further information.
Market stalls/street vending: Vendors can use QR codes to reduce queues and waiting times by enabling customers to order and pay from their cell phones via an online ordering system.
In-store checkouts: Encourage your customers to make contactless payments online by displaying a QR code on your cash register.
Companies with many sales employees: Instead of buying a separate card reader for each:n employee:in, QR codes are a better and more cost-effective way to accept payments.
Would you like to try QR Payments for yourself? Register for free with Payrexx and test the QR Pay tool free of charge for 30 days.
