QR code payments have simplified life a way that wasn’t imaginable a few years back. Today, they are one of the most convenient and sought-after digital payment modes among merchants and consumers.
They have gained so much popularity that you will hardly find an establishment without a prominent QR code on display. Even the smallest of business owners have switched over to it.
What Are QR Codes?
They are square-shaped images with black and white pixels containing information. This information can include banking information, product information, or website links. They are versatile enough to include all kinds of information, but for the sake of the topic, we will be sticking to QR code payment and how they work.
How Do QR Code Payment Work?
Let’s look at a breakdown of how QR codes work!
- For a QR code payment to go through, a user needs to scan the QR code using a compatible app on their smartphone
- Once the QR code is scanned, payment-related information is displayed on the user’s screen
- The user needs to validate the payment using a PIN in case of UPI transactions. The money is debited from the user’s wallet in case of e-wallet-based payments
- The transaction is initiated via a direct bank transfer in case of UPI, or a wallet-to-wallet transfer if the payment is done using funds stored in the digital wallet of the user
It’s a simple and fast process. Users can expect the transactions to happen within just a few seconds. Now that we know how QR code payment works, let us look at UPI and how it works because it is the most popular platform to scan and pay via QR codes.
What is UPI and How Unified Payment Interface Works?
UPI or Unified Payment Interface has been designed to work seamlessly across all banking and card networks. It is a secure platform that does not require parties to share banking information and all payments happen via direct bank transfers between the receiver and the payee. It is a unique platform with features that are not available on any other platform.
- All transactions via UPI are instant and work 24/7, 365 days a year
- The platform allows access to multiple bank accounts the user may have
- 2-Factor authentication increases the overall security of transactions
- Users are provided with a virtual ID like an email account they can share to collect payments without needing to give out any additional banking or card information
Benefits Of Using QR Code Payments
Now that we have briefly covered everything you need to know about QR code payments and UPI, let us explore the benefits of using QR code payments for your business rather than dealing in cash.
- Secure Transactions: When dealing in cash, the money needs to be counted, stored, and moved to the bank for a deposit which is risky because of the threat of theft. However, digital transactions via QR codes are secure as there is no physical currency to be handled and all the money is directly deposited in the respective bank accounts.
- Reduced Queues: Stores can see a reduction in queues as customers can scan and pay for the goods they purchase. Moreover, since multiple customers can scan and pay at the same time, it results in reduced queues at the business establishment.
- Enhanced Customer Service: Digital payment are slowly overtaking cash-based transactions and giving customers the option to pay digitally. It is increasing their overall satisfaction levels when buying goods and services from the business.
QR codes are the best way to give customers the experience they are seeking in a world where contactless payments are slowly becoming the norm with a higher number of customers avoiding cash payments in a post-covid world. So, if your business is still lacking on that front, it’s time to give it the edge it deserves!