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QR code payment

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QR code payment is a contactless payment method where payment is performed by scanning a QR code from a mobile app.[1] This is an alternative to doing electronic funds transfer at point of sale using a payment terminal.[2] This avoids a lot of the infrastructure traditionally associated with electronic payments such as payment cards, payment networks, payment terminal and merchant accounts.

To use a QR code payment the consumers scans the QR code displayed by the merchant with their phones to pay for their goods.[3] They enter the amount they have to pay and finally submit.[3] This is a more secure card-not-present method than others.[3]

History

The QR code system was invented in 1994 by Masahiro Hara from the Japanese company Denso Wave.[4] In 2011, Chinese company Alipay designed a QR code payment method which allowed offline partnering stores to accept payment by scanning an individual’s QR code in Alipay Wallet.[5] In 2014, another Chinese technology company Tencent also introduced a similar feature on its messaging app WeChat to allow its users to make payments.[6]

The first mobile wallet app for cryptocurrency Bitcoin featured sending and receiving payments with QR codes in 2012.[7]


Usage by country

QR code payment services are most prominent in rapidly industrialising countries in Asia since they require less hardware than credit/debit cards and NFC technology, which is particularly useful for smaller merchants transitioning from cash-only payments.[8][9]

China

QR code payment has helped mobile payment become the most popular method of payments in China, accounting for 83% of all payments as of 2018.[10] Nearly all shops, street vendors, most metro systems, buses, and taxis in Mainland China accept either WeChat Pay or Alipay for payment.[11]

Wuhan Metro introduced QR code payments across the whole network

Most metro systems, buses, and taxis in Mainland China accept either WeChat Pay or Alipay for payment. The national railway operator, China Railway, also accepts the two major apps for payment.

India

Much as WeChat Pay and AliPay have displaced traditional cash payments within the Chinese mainland, Paytm has resulted in a large portion of Indian retail transactions to mobile payment [12]. As per the company, over 7 million merchants across India use their QR code payment system to accept payments directly into their bank account.[13]

Line 1 of the Mumbai Metro in India allows users to purchase a ticket on their phones using QR code payments. Instead of swiping an RFID card or single-use token, a QR code is generated on the Paytm app which is then read by a scanner mounted on the turnstile.[14]

South East Asia

South East Asia, particularly the ASEAN states, is another region where QR code payment is in the process of becoming the default mode of payment.[9] In response to the proliferation of competing QR code services in the region, the Monetary Authority of Singapore created the SGQR system, a unified system of QR codes enabling the use of one individualised QR code per vendor across all authorised QR code payment platforms.[15][16] Malaysian authorities are considering introducing a similar national QR code system since, as of 2020, approximately 40% of Malaysians use e-wallet services that support QR payment.[17][18] Major QR code payment services in the region include GrabPay and [19] Singtel Dash.[20]

Cryptocurrency

Today's projects in the cryptocurrency space have a pretty good incentive to facilitate crypto payments for their users. QR codes helps make this process simple and reliable. All you need is a quick scan from your smart phones camera to acquire the sending or receiving address. [21]

Bitcoin wallet addresses as well as other types of cryptocurrencies are made up of a series of letters and numbers that can be longer than 34 characters. This makes it very inconvenient to have to enter manually by hand each time you need to send or request a payment. So by using a Bitcoin QR code generator app that long address can be turned into a QR code ready to scan quickly and easily.[22]

References

  1. ^ "Scan to pay. How QR code payments work - Dignited". 11 January 2018.
  2. ^ "China begins regulating QR code payments".
  3. ^ a b c "How QR codes are changing e-commerce". 19 October 2017.
  4. ^ 2D Barcodes - Japan's Top Inventions | NHK WORLD-JAPAN On Demand, retrieved 2020-06-23
  5. ^ "A Hangzhou Story: The Development of China's Mobile Payment Revolution" (PDF).{{cite web}}: CS1 maint: url-status (link)
  6. ^ Derrick A Paulo (October 29, 2017). "WeChat phenomenon: How a messaging app helped spark China's cashless revolution".
  7. ^ Andreas Schildbach (August 6, 2012), Google Playstore: Bitcoin Wallet, archived from the original on 2012-08-06
  8. ^ [1]
  9. ^ a b [2]
  10. ^ "Payment methods in China: How China became a mobile-first nation". daxueconsulting.com. Retrieved 2020-06-23.
  11. ^ ""无现金时代"的主角——移动支付 | 中国文化研究院 - 灿烂的中国文明". chiculture.org.hk. Retrieved 2020-06-23.
  12. ^ "Paytm promotes SVP Kiran Vasireddy to the position of COO". The Economic Times. Retrieved 4 April 2018.
  13. ^ Bhakta, Pratik (2018-03-20). "Paytm transactions reportedly grew four-fold to $20 billion in February". The Economic Times. Retrieved 2018-04-04.
  14. ^ "Paytm introduces QR-based metro tickets for Mumbaikars". Business Today. 17 November 2017. Retrieved 17 November 2018.
  15. ^ [3]
  16. ^ [4]
  17. ^ [5]
  18. ^ [6]
  19. ^ [7]
  20. ^ [8]
  21. ^ Bitcoin QR Code Generator Online, September 16, 2020
  22. ^ Bitcoin QR Code Generator Tool, September 3, 2020
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