The entire landscape of financial technology, or FinTech as we call it, has changed over the past few years. From UPI payments to direct account transfers, QR codes have really changed the way we make our payments or shop for products. In the last year, due to the COVID-19 pandemic, contactless payments have become the most preferred choice for most people. Customers are no longer carrying cash to stores. Hence, as a store owner or an owner of a small business you need to know how you can collect payments with QR codes.
QR code payment is actually very simple. It is straight out of a science fiction movie where you just have to scan someone’s device (mostly smartphone) and you can transfer money from your account directly to theirs. Smart products like Plutus by Pine Labs have really made it easy to do multiple payments through a single app. In this article, we will discuss everything about how to collect payment with QR code and what are its advantages. Let us first look into how a QR code works.
How does a QR code payment work?
A QR Code, or a Quick Response Code, is a type of matrix barcode that often contains some specific data linking to a website or an application. In the financial world, a QR code is linked to the bank account of a person or an organization. They have a clear advantage over barcodes as they can be scanned using smartphones. All you need, to make or receive a QR code payment, is to have a smartphone that can scan QR codes.
Most smartphones today have the capability to scan QR codes. With scanning advancements like Google Lens coming into the picture, scanning QR code seems like just a basic feature that is available in every smartphone. Customers can scan the QR code at the time of final checkout and then they are prompted to pay the total price.
Similarly, the store owner can also scan the QR code on the customer’s phone, which is linked to the customer’s bank account, and then the retailer can finalize the payment on his own phone.
How to set up a QR code payment
FinTech companies like Pine Labs have made this very simple. You can directly generate a QR code easily from your website. You can also use products like Plutus Smart to organize and streamline all the payments you receive by using a single application. The consumer can then scan the code and make the payment using payment apps on their phone.
The type of QR codes generated for making payments is called static QR codes. The URL of the destination website or the application is placed directly in the QR code. Since the bank accounts are not dynamic properties, static QR code works best for payments.
Dynamic QR codes are generally used in tracking locations or in delivery services where the location keeps changing.
Advantages of a QR code payment
1. Instant Payments
The biggest reason for the popularity of QR code payments is their ability to make instant payments. There is no need to type any bank account numbers or codes to complete the payment. By using Plutus Smart, you just scan the QR code and the money gets transferred to the destination account.
No information related to the bank account of either the sender or the receiver is revealed during the transaction as the data is encrypted. Hence, QR code payments are one of the safest ways to make payments. Even when you are paying at a GPRS POS machine or an Android POS terminal, paying through QR code using Plutus Smart is a safer option.
QR code has all the necessary data coded in the matrix and hence, there is no room for error. The money will reach the destined account. Hence, this is one of the most reliable ways to transfer large sums of money.
4. Easy Set-Up
The entire procedure to set-up a QR code payment is very easy. The FinTech Company will help you if you need assistance. It is as simple as downloading a new application on your phone. You just have to fill in some details and your payment interface is ready.
Payment through QR code has made life easier for a lot of people. There are no unnecessarily long queues at ships because the retailer is busy counting cash. With just a scan, you can check-out and move out of a store. This has also increased the efficiency of GPRS POS machines and Android POS terminal.