Allow us to paint a picture for you: You walk into a coffee shop, and the barista knows what you want. They ring up your latte or espresso, and you pay with a quick scan of your phone. No cash, no credit cards – your payment is all thanks to a QR code scanner.
You have probably seen those black and white squares everywhere, be it on the side of a building or the back of an airplane seat. But what about your mobile wallet? Let’s look at how QR code scanners are impacting the world of mobile payments.
The Rise of Contactless Payments
A push for cashless transactions has been amplified in recent months as safety becomes something consumers are more mindful of. Enter QR codes to save the day. All a consumer needs to do is scan a code and walk away without touching a single thing except their phone. The ease of use for consumers and businesses is driving a rise in popularity. Whether it’s a farmer’s market or a retail store, QR code scanners are welcomed across the board.
Enhanced Security with QR Code Scanners
QR code scanners are being used to close the gap in the security concerns that have traditionally come with mobile payments. Pin or passwords protecting their smartphones are all consumers need to keep third parties away from their information sharing. As the rise of the “touchless economy” continues, the use of QR code scanners will only continue to gain speed.
Businesses have become increasingly innovative in designing QR codes. Many have moved to a model where the QR code-decoding software executes a variety of functions rather than just one. With payment codes from a mobile wallet popular among customers, businesses are going the extra mile to make their codes unique to enhance security and provide added value.
Kaspersky released an extensive report on QR code functionality as well as where it falls short in the security department. It appears that customers using a code for a purchase will get subsequent dynamic codes that will not look the same for their next purchases at the same retailer.
Seamless Integration with Mobile Wallets
Digital payment wallets have found comfort in QR code scanners in the digital finance space. For businesses, this trend has opened valuable opportunities to use a scanner to drive more customers to their brand as they increasingly turn to mobile wallets.
Scanning a QR code with your mobile wallet is a blink-and-you-miss-it feature. In that second, the scanner reads the code, authenticates the payment credentials, and processes the payment. It’s never been easier to pay for goods and services with no assets to actually exchange in person.
Global Accessibility
The biggest reason QR code scanners are shaking up mobile payments is because they’re so easy to access from anywhere in the world. All it takes is a compatible phone, and you can have your codes printed and scanned. This is a game-changer for people without access to traditional banks.
Look at China and India to see just how prevalent QR code payments have become in these regions. This level of convenience and cost of implementation also play a major role in their impact on financial inclusion. Smaller businesses can accept digital payments this way. To learn more about how QR codes work, check out this detailed insight on Investopedia and take the next steps.
We’ve only just begun to realize the potential QR code payment systems. They are no longer a luxury but a need-to-have.
