Everything you need to know about QR Code Payments
                     Everything you 
need to know 
about QR Code 
Payments
• I precisely remember the first time when I saw a QR code. I 
thought that it was just a fancier version of a barcode. Later 
on, I was pleasantly surprised to see how different and 
advanced this technology turned out to be.

• Today, we all are well familiar with the iconic black and white square 
design of a QR code. The increased penetration of smartphones and 
access to high-speed internet has led to the massive adoption of the QR 
codes. That’s the reason why we see it almost everywhere whether it’s for 
shopping, movies, ads, etc.
• According to research by Statista, around 11 million households in the US 
alone will scan a QR code in the year 2020. This number is way more than 
9.76 million scans which were recorded in the year 2018.

• US is not the only country where QR Codes are widely used. Countries 
like France, Australia, Malaysia, Singapore, Switzerland, Thailand, 
Indonesia, and Canada are not far behind in the race.
• Furthermore, QR code is also witnessing a surge in Africa and the Middle 
East region where its total usage jumped from 12% in 2017 to 18% in 
2018.
• In this article, we will see what QR codes are? What are its different 
types? How does it work? What are its benefits and drawbacks? And 
everything else that you should know about the QR Codes.
• So, let’s see what QR codes actually are.
What is QR code and what’s 
its history?
• QR is an abbreviation for Quick Response. The QR Code is nothing but a two-dimensional 
code. It has a pattern of black squares that are arranged on a square grid with a white 
background. Imaging devices such as smartphone cameras can be used to read these QR 
Codes.
• QR Codes are quite similar to a bar code except for the fact that it can store a larger 
amount of information per unit area.
• A Japanese company named Denso Wave in the 1990s invented the QR Codes. Initially, 
QR codes were used in the automotive industry mainly for production, tracking, and 
shipping. However, slowly it got adopted outside the automotive industry for applications 
that included item identification and marketing.
• Many experts have said that the QR codes didn’t take off as expected in its initial years. 
However, in some countries, specifically China, it played a crucial role in the rapid growth of 
QR code mobile payment services as it enabled businesses to accept digital payments
 without investing in any hardware such as the point of sale terminal.
How do they work?
• One major difference between QR codes and barcodes is that the QR codes can be scanned from both 
paper and screen. On the other hand, linear barcodes can be scanned only from the paper. That’s precisely 
the reason why you see QR codes both on apps as well as at the online stores.
• To scan a QR code, you need to have one of the following things:
• A barcode reader that has the capability to scan QR codes.
• Tablet or a smartphone with an inbuilt camera.
• Nowadays, there are also many QR code scan apps available that allow users to scan the QR codes with the 
utmost ease. All the user has to do is open the camera and place it towards the QR code; this will 
immediately identify it and subsequently open a push notification. The user then just has to tap on it to finish 
the operation.
• There are also some payment and banking apps that can process QR codes for the purpose of bank 
transfers and payments.
• There are many ways in which a QR code can be processed. Some of it is mentioned below:
Scanning recipient’s QR code with a smartphone
In this process, the user has to open the phone camera or the relevant QR code scan app. 
Afterward, they have to scan the code that is displayed on an individual product, paper bill, 
or at a store’s checkout. Various offers and loyalty points might also be applied via the 
application in case it’s a store specific application.
Retailers scanning QR code on user’s phone screen
In the QR code payment process, the user opens the payment app once the total 
transaction amount is set in the POS system of the retailer. The QR code payment 
app displays a QR code that identifies with the user’s card details. The retailer then 
scans the QR code with a scanner thus concluding the transaction.
Types of QR Code
 Static QR code
 
In this type of QR code, the URL of the actual destination website is placed directly in 
the QR code. The content of these QR codes is not editable. These can’t be tracked; 
however, they can be rectified by adding the URL.
 Static QR codes are used for facilitating quick and simple payments in various 
industries like delivery service, in-home services, in-store retails, taxi drivers, and street 
vendors. In all of this, all a user has to do is just scan the QR code to make the 
payments without any hassles.
 
Dynamic QR code
 
The dynamic QR code is editable. It also comes with additional features such as 
access management, password protection, scan analysis, and device-based 
redirection. With dynamic QR code, you can also find out the various details like the 
number of people who scanned the code, the type of device they used for scanning, the 
scanner’s location, etc.
Benefits of using QR codes
 Instant payments
 One of the biggest advantages of using QR codes is that it facilitates instant payment. Making 
payment via QR codes is extremely quick as compared to other modes of payment. All a user has to 
do is simply open the QR code scan app, scan the QR code, and confirm to process the payment. 
Within a few seconds, the payments are made.
 Top-grade security
 Making payments via QR codes is very secure. It’s because the QR code is nothing but just a tool 
that is used to exchange information. Any data which is transferred via QR codes is encrypted thus 
making the payment foolproof secure.
 Easy to set up
 Setting up QR code payments is extremely easy. You don’t need much of an infrastructure. You only 
require a smartphone with a camera and a QR code which is either printed or in the electronic form. 
The usage of QR codes for payments also eliminates the requirement of point of sale machine or any 
other special equipment used for payments.
 Higher reliability
 QR code payments are a foolproof payment method as it eliminates the probability of any kind of 
error. The pattern of black boxes consists of unique data which enhances the reliability of the QR 
code payments.
Major use cases of QR code payments
Fuel retailers
E-ticket booking
Toll payments
Parking payments
Street vendors
Micro-business
SMEs (Small and medium-range businesses)
Conclusion
 I hope this article helped you to understand several things about QR 
code like what they are? What’s its history? How do they work? What 
are its types? And at last its pros and cons. The QR codes technology 
is being adopted at an accelerated rate throughout the world due to its 
several benefits.
 However, it also comes with its own set of cons as mentioned in the 
article. It will be interesting to see how this technology adapts to the 
ever-changing world of technology. Only time will tell whether it will 
evolve further or perish forever.
www.digipay.guru
[email protected]
THANK YOU +91 95740 78295
B/703, Siddhi Vinayak Towers,
Off S.G.Road, Makarba,
Ahmedabad-380051