Generating QR code for in-store payment

[CarderPlanet]

More than 25 years ago, the Japanese company Denso-Wave invented the QR code and applied it to the automotive industry. Later, the whole world was pleasantly surprised to see how progressive and user-friendly this technology is. Now we are all familiar with the black and white badge that serves as a virtual database and is widely used for online and offline payments.

High-speed internet and the steadily growing number of smartphone owners have led to the massive adoption of 2D barcodes. According to statistics, in 2020, 11 million Americans prefer to pay for their purchases using the QR code. The USA is far from the only place where 2D signs have spread. France, Australia, Switzerland, Canada, Ukraine, Singapore and many other countries are actively using codes to pay bills.

QR Code: What are the types of 2D signs?​

The abbreviation QR stands for Quick Response. The new barcode contains instant access information. It can be considered a smartphone camera, POS terminals and other devices. Good news for Apple device owners: all operating systems starting with iOS 11 allow scanning codes using the camera without the presence of special applications.

There are two types of QR-codes: static and dynamic. They are equally good for cashless payments, but there are some differences between them. Let's consider each type separately.

Static QR code​

When it is created, the data is embedded directly into the two-dimensional sign. Thus, information cannot be modified within the code, only by creating a new one.

Sellers enter the card details into the code and provide it to buyers. Those, in turn, scan it and enter the amount to be paid, after which the merchant checks the correctness of the data. Convenient for fast checkout, static code is common in retail, delivery, taxi, and other industries.

Dynamic QR Code​

Its main advantage is the ability to change information. In simple words, not the data itself is placed in the code, but a link to a page with information that can be edited at any time. Using a dynamic sign, merchants can change the amount of payment, as well as add a description of the product / service. Moreover, you can find out the number of people who scanned the code, the devices from which they did it, and the location.

How do cashless payments by QR code work?​

It's no secret that payment with contactless cards and mobile wallets is in many ways superior to QR codes. However, not all entrepreneurs are willing to pay to install a POS terminal, and the 2D drawing allows merchants to accept digital payments without investing in any equipment.

QR code is also a must-have online payment method. Instead of entering card details and personal data, the user scans the code with his phone and makes a payment in a few clicks. Merchants are actively adding this method to their sites, thereby increasing the conversion rates of payments.

Payment by QR code takes place in a matter of seconds, if the buyer has an application ready to decrypt the encrypted data. Android gadgets use QR Droid, QR Reader or NeoReader. As mentioned earlier, Apple devices read the code using their native camera. Banking apps such as Privat24, Oschad 24/7 or Monobank offer a built-in code scanning function, which makes the task many times easier for the user.

When making a purchase online or in a traditional store, the user opens the code reader application and scans it. If the seller uses dynamic code, they generate it locally. In the case of a static code, the buyer scans it and pays the amount to be paid on his own. Upon completion of the transaction, the merchant receives an SMS notification of a successful transaction.

Benefits of paying via QR code​

Paying for services using a QR code helps retailers build long-term relationships with customers, making it easier for them to purchase. Let's take a look at the main benefits of payment automation, which are beneficial for both merchants and buyers.

• High level of security

The information stored on the QR code is encrypted, making payments more secure. In addition, the user does not enter the card details, and the transaction information can be verified before confirming it.

• Low cost

Payment by QR code is the most affordable and simple contactless payment method for entrepreneurs. The seller is not required to install the terminal. All you need is to create a code with account details and print it.

• Transaction speed

Cash is falling into disuse, leaving non-progressive merchants aft. Instant payment greatly simplifies the shopping process and takes a few seconds without requiring any effort on the part of the buyer and merchant.

• High reliability of payments

When paying for purchases using QR-code, the probability of an error is minimal, if not zero. The code can be read even if it is damaged or in poor lighting conditions (acceptable error range up to 30%).

Examples of using QR codes​

QR payments have been actively used all over the world over the past years. The NBU intends to introduce this type of contactless payments throughout the country.

At this stage, many entrepreneurs have added QR payments to their store. Also, can observe the following examples of using a two-dimensional code:

• Transport

For more than a year, the Kiev metro took tokens out of use, but they continued to sell them. It's a paradox, isn't it? In connection with the coronavirus pandemic, the transition to contactless travel payments has accelerated significantly. In addition to cards, Kyiv residents can now use QR codes by purchasing them at the checkout or in the Kyiv Smart City application. 2D signs are also used to pay for bus, trolley and tram fares. Utilities

• Utility services

Ukraine is also striding by leaps and bounds to make quick and contactless payments for their services. QR technologies allow you to pay for gas, water, electricity, etc., avoiding long queues at the bank. A code is placed on the receipt, by scanning which the user gets to the site where all bills can be covered.

• Paying bills in catering establishments

Now visitors to cafes and restaurants can pay for their orders via QR-code. To effectively accept payments, establishments use a mini cash register and software that generates codes.

• Street vendors

Street vendors with a minimal assortment of goods do not intend to lag behind progress. By offering only cash payments, they run the risk of losing customers, which is why QR codes are so relevant to them.

How to create a QR code for payment?​

In order to increase the conversion of payments, merchants create 2D signs and place them on receipts, checks and goods. With the correct use of QR codes, you can forget about cash passing from hand to hand, thereby ensuring the maximum level of comfort for customers.

Almost every bank allows you to pay by codes. Monobank, Oschadbank, Alfa-Bank and the list does not end there. For example, Privatbank customers can use @PrivatPayBot in Telegram to generate payment codes.

To securely accept and process payments online, online merchants rely on the services of payment providers. Those, in turn, offer QR payments as one of the ways to cover the bill.

Contact us if you still have questions about QR payments, or if you want to add them to your website.