Benefits of QR code payments

Jul 09 2021 | Julie Warshaw, PayPal Editorial Staff

Thanks to rising interest in contactless transactions, QR codes have become a popular payment option with both businesses and consumers.
QR codes have had obvious benefits since the first one was created more than 25 years ago. But they weren't an effective way to reach customers until smartphones came along. 

A QR code (short for Quick Response code) is a type of digital code used to store or link to information. Before the pandemic sparked global interest in touch-free payments, brick-and-mortar businesses typically limited their payment options to cash, checks, and credit cards. One reason being that many digital payment methods require a special kind of payment terminal called a Near Field Communications, or NFC terminal.

Today's shoppers have learned to associate a QR code with everything from loyalty programs to payment options. Because of this, small businesses can now accept contactless payments from customers using just their smartphones.
Let's look at the benefits of QR code payments in a little more detail.

QR codes make customers feel safer.

Customers have embraced in-person digital payments like QR codes because they're able to pay for things without having to touch shared surfaces like payment terminals, pens, or change. This helps shoppers feel safer knowing the only thing they'll touch is their own device.

QR codes make it easy to start accepting touch-free payments.

Many types of touch-free payment solutions require a special payment terminal and it might not be worth investing in the equipment or redesigning your payment process just to accept a few touch-free payments. With QR codes, on the other hand, all you need is a standard printer. Just print your QR code and you can start accepting touch-free payments in seconds.

QR codes payments are secure.

Rather than storing sensitive payment information, a QR code simply links the customer’s payment app to your account. Their payment data is encrypted by the payment app, so they’re able to pay you without sharing personal information like account numbers.

QR code payments can help increase customer loyalty.

From the make of their car to their choice of hand sanitizer, people are loyal to the brands they use. This extends to their payment choices. For some customers, this means that if you don't offer their favorite payment method, there's a chance they'll take their business elsewhere. In fact, one-third of consumers who prefer paying with QR codes would not complete a purchase at all if that option were not available.

QR codes are easy to create.

Not only are QR code payments an easy option to offer, they can be safe, fast, and attractive to shoppers. Learn more about selling with QR codes. When you’re ready to get started, just download the PayPal Business app or log in to your account from the web to create a QR code to accept touch-free payments now.
 
1How We Shop, PYMNTS.com/PayPal, 2020. Based on a survey of 2,163 U.S. consumers.
 
The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.

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