QR code payments: What are they and how do they work?

Payment methods are evolving rapidly and QR code payments are becoming an increasingly popular option. This technology allows users to make contactless transactions by scanning a QR code from a mobile app or QR code sticker.

What are QR code payments?

QR codes, also known as Quick Response codes, are a type of 2D barcode used to store information efficiently. In the context of payments, QR codes are used to facilitate contactless transactions.

How do QR code payments work?

1. QR Code Generation: The operator generates a QR code associated with the transaction amount.
2. Code Scanning: The customer scans the QR code with their mobile device via a bank app, digital wallet, or payment app.
3. Confirmation and Authorisation: A payment screen opens on the customer's device to review and complete the payment.
4. Transaction Processing: Information is transmitted over a secure network and the transaction is processed.
5. Payment Confirmation: Both parties receive instant notifications confirming the success of the transaction.

Advantages of QR code payments

• Ease of Use: Customers simply scan the code and complete the payment on their mobile device.
• Contactless: QR code payments eliminate the need for physical contact with credit cards or cash.
• Increased Security: Payment information is transmitted in encrypted form, reducing the risk of fraud.
• Cost Savings: QR code payments can be more cost-effective, eliminating costs associated with cash handling.
• Flexibility: QR code payments can be used in shops, events, vending machines and self-service machines.