A Quick Scan of QR Codes and Payments

If you haven’t used a quick response (QR) code to make a payment yet, you’ve definitely seen one. Initially developed for tracking parts in automotive manufacturing, these machine-readable codes quickly became the darling of marketers, who saw the opportunity to use the easily recognizable black-and-white matrix barcode to connect with consumers.

The codes are printed on everything from postcards and business cards to billboards and buses. They appear on in-store displays and magazine print ads. Maybe you’ve scanned one to get product information, access a web form, or redeem a coupon?

Today, QR codes are also printed on consumer products and B2B supplier invoices and used to facilitate payments. Their use in the payments space is far from standardized, but various tech companies are introducing tools to help consumers and sellers leverage the technology.

Consumer Mobile Payments

QR codes are finding their place in the expanding universe of cardless, cashless mobile payments. Using their mobile device’s camera and special app, a consumer can initiate payment by scanning a product’s QR code to access pricing/payment information contained in the code. They can then authorize payment through the app. Or, conversely, the merchant can initiate payment at the point of sale, scanning a QR code on the customer’s device and deducting the amount from the customer’s wallet.

QR’s alternative is the widely used near field communication (NFC) technology supported by many point of sale terminals. NFC tags are now built into many smartphones and used in mobile wallets. But unlike QR codes, which are printed and generally free, NFC tags carry a slight cost for the seller, begging the question: is there room for both types of payment technology at the register? (Read TrustPoint’s QR Codes vs. NFC Tags for more points of comparison between the two technologies.)

Business Payments

QR codes are now able to help businesses create and collect invoices via mobile device—a use case seen mainly in the construction and food service industries where multiple, frequent deliveries are made and invoices aren’t typically made at the time of product drop-off. Companies like QR Invoice offer solutions enabling vendors to create scannable QR codes that generate secure electronic invoices that can be accessed on a customer’s device for viewing or payment—right then and there, electronically by credit or debit card or bank transfer.

The use of QR codes in B2B payments is still in its infancy, but we will report more on the technology’s possibilities as it becomes more widely adopted. Stay tuned for additional insights.