QR code vs. barcode: What’s the difference?

What are barcodes?

Barcodes are the scanning labels you often see on the back of your morning box of cereal. Known as one-dimensional or 1D barcodes, each has a series of vertical lines, with the thickness and the distance between lines determining a specific code tied to that product.

But these days, you'll find barcodes on far more than just the backs of cereal boxes. From verifying security badges to tallying votes, barcodes are used in almost every scenario where scanning is required.

Advantages of barcodes for business

Thanks to their simplicity and effectiveness, barcodes offer substantial benefits to businesses, such as:

• Time and cost savings: Scanning a barcode requires significantly less time than manually inputting or pulling up information, which means employees can dedicate their time to other higher-value tasks. For example, by scanning a barcode, a cashier can automatically find a product in the store's database instead of typing in a number.
• Error reduction: Because manual data entry is prone to typos, barcodes minimize the probability of human errors and ensure accuracy in processes like pricing, inventory tracking, and order fulfillment.
• Simple integration with systems: Barcodes can be easily integrated with various software systems, such as inventory management, enterprise resource planning (ERP), and point-of-sale (POS) systems, improving operational efficiency.
• Universal standard: Similarly, certain barcodes follow a standardized global format, such as the Universal Product Code (UPC) or International Standard Book Number (ISBN), allowing seamless integration and communication across industries and countries.

Disadvantages of barcodes for business

Although barcodes have tremendous upsides, there are a few disadvantages you should also be aware of, including:

• Cost of implementation: To reap the benefits of barcodes, you’ll typically need to invest in equipment like barcode scanners, labels, printers, and software.
• Line of sight requirements: Ever struggled when scanning a bulky item at the self-checkout counter? Barcodes need to be within the line of sight of a barcode scanner to be read accurately, which means they can be ineffective for large or oddly-shaped items. Similarly, disruptions may be caused by smudged or deteriorated barcode labels.
• Limited data capacity: Traditional barcodes have limited data capacity and may be insufficient for storing detailed product specifications or customer-specific information.

Types of barcodes

We’ve come a long way from barcodes on the back of cereal boxes – nowadays there are three types of barcodes that businesses can rely on:

• 1D barcode: Consisting of parallel lines and spaces of varying widths, these are the barcodes you often see on products, books, and security badges.
• 2D barcode: Also known as a matrix barcode, these barcodes contain patterns of geometric shapes (e.g., squares or dots) that encode data both horizontally and vertically. These are most commonly used in ticketing, advertising, and mobile marketing.
• 3D barcode: These uncommon barcodes encode large amounts of information in complex three-dimensional physical objects or structures, such as electronic components or medical instruments.

What are QR codes?

QR (or quick response codes) are the checkerboard-like scannable squares that have grown in popularity in recent years — you've probably seen signs at stores with a QR code that encourages shoppers to download an app, sign up for a customer loyalty program, or get more information about a product.

But how do QR codes work? Think of them as a link — but instead of being clicked, they’re scanned. Once it’s opened, the customer is directed to a digital location like a webpage, an app, or, in the case of payments, a payment portal.

Combine that with a smartphone's ability to read a QR code using its camera; the result is a customer with their own personal scanner.

Advantages of QR codes for business

QR codes are used in restaurants, shops, and salons for good reason: They’re safe, convenient, and easy to use. Here are some top advantages of QR codes for businesses:

• Contactless interactions: QR codes are a touch-free way to pay for purchases, browse a digital menu, or peruse a virtual brochure.
• Cost-effectiveness: Because QR codes can be scanned using smartphones, businesses don’t need to invest in specialized hardware (e.g., payment terminals) to get started with touch-free customer interactions, such as processing payments.
• Streamlined transactions and payments: QR codes enable quick and convenient payment processing without customers needing to pull out cash or a card, which not only enhances the customer experience but also reduces transactional friction for businesses.

Check out more advantages of QR codes for businesses here.

Disadvantages of QR codes

However, like with barcodes, there are some disadvantages of QR codes you should be aware of before plastering them everywhere:

• Limited accessibility for certain users: Scanning a QR code requires a smartphone or device with a built-in camera, which means individuals without access to these technologies or who have difficulties using them may struggle.
• Dependency on Internet connectivity: An Internet connection is required for QR codes to work. If a customer’s device lacks Internet connectivity or has a slow or unreliable connection, they won’t be able to complete the process of making a payment or visiting a landing page.

Types of QR codes

QR codes typically come in two formats:

• 2D codes: Printed on a flat surface like paper or signage, the 2D QR code is what most of us picture when we think of a QR code. 2D barcodes can be scanned and read correctly from any direction, even if the code (or the phone) is upside-down. And because two-dimensional QR codes can be printed using a regular desktop printer, they're convenient for both shoppers and businesses. Get your in-person signage kit here.
• 3D codes: These look like 2D QR codes but are created using dedicated etchers or 3D printers to print at different heights within the code itself. Think of it this way: If a 2D QR code uses squares, then a 3D QR code uses boxes. While 3D barcodes can hold more information, it takes specialty scanners to read them, so they're usually reserved for manufacturers who engrave the code into their machinery.

Barcode vs. QR code: Main differences

While barcodes and QR codes serve similar information retrieval purposes, they differ in their capabilities, features, and pros and cons:

• Data storage capacity: While barcodes are great for communicating small sets of information, QR codes hold roughly one-hundred times as much information. That’s why the former is typically solely used for simple tasks (e.g., packaging or tracking labels), while the latter can meet a much wider variety of business needs, such as payment processing.
• Ease of creation: Despite the difference in data storage, both QR codes and barcodes can be generated in seconds and are cheap to print, making them suitable for small retail stores and large warehouses alike.
• Error correction: QR codes have built-in error correction capabilities — even if the code is partially smudged, scratched, or printed poorly, they are still scannable. On the other hand, traditional barcodes do not have built-in error correction, and they rely on high printing quality and accurate scanning to ensure successful reading.

Using business QR codes as a payment solution

There are many ways you can put QR codes to work for your business, but one of the more obvious uses for QR codes is accepting payments. QR codes are difficult to alter or hack and can instantly connect a customer with your business's payment information. The transaction is then encrypted as usual through the app, making it a secure way to pay.

You can offer and accept QR code payments without any special hardware or scanners, so accepting payments is much easier than other touch-free payment types.

Ready to accept payments with QR codes? Get a QR Code for your own business here. Plus, learn about fees here.