QR Code Payments Explained – How They Work and Why You Should Use Them

  • April 07, 2025
  • 3 minutes, 28 seconds

Index

Carrying cash or waiting for card machines feels like a burden? Modern tech solves that with digital payment services like QR code payment. It is quick and contactless. Buying coffee from a roadside cafeteria, paying for groceries at Carrefour, or tipping a delivery driver — everything with just a few clicks. And it’s growing faster than you can imagine. 

Why? QR code payments are fast, secure, and contactless. And how you can use it? Let us show.  

What is a QR Code and How Does it Work in Payments? 

A QR code (Quick Response code) is a two-dimensional barcode. It stores information in a pattern of black and white squares. Traditional barcodes hold data horizontally (those vertical lines with different thicknesses), but QR codes store data both horizontally and vertically. Thus, they can contain more information. When you scan it using a smartphone or QR code reader, they quickly direct you to the encoded data — a website URL or payment information.

In the payment systems, here’s how QR codes function:

Static QR Codes

These contain fixed information that doesn’t change. For example, a merchant’s static QR code. It always directs payments to the same account. You need to manually enter the payment amount before confirming the transaction. Easy to set up. However, they lack flexibility. Also, no support for transaction-specific details. 

Dynamic QR Codes

These codes are generated uniquely for each transaction. They can include specific details like the payment amount and purpose. Benefits? Enhanced security and the ability to track transactions in real time. Merchants can update the information in dynamic QR codes without changing the code’s appearance. 

Why QR Code Payments Are Becoming Popular 

QR code payments are gaining popularity due to several advantages:

  • Speed and Convenience: They enable swift transactions. The need for physical cash or cards is gone. In China, 7% of users prefer QR code payments — 10-15 times daily. 
  • Contactless and Hygienic: The demand for touch-free payment methods has shot up post-pandemic. QR codes serve this demand.
  • Minimal Infrastructure: Merchants don’t require expensive point-of-sale terminals. Just display a printed QR code and reduce setup costs. 
  • Interoperability: In regions like India, QR codes work seamlessly across various platforms and banks. A simplified payment process for users. 

How to Use QR Code for Payment? 

Infographic showing six steps to use a QR code for payment, from downloading a payment app to confirmation.

Using QR codes includes a few easy steps:

  1. Download a Payment App: Download a reputable payment application compatible with QR code scanning.
  2. Link Your Bank Account or Card: Follow the app’s instructions to connect your bank account or credit/debit card securely. This step is typically a one-time process.
  3. Scan the Merchant’s QR Code: Open the payment app. Select the option to scan a QR code. Point your smartphone’s camera at the merchant’s displayed QR code until the system recognizes it.
  4. Enter the Payment Amount: Input the transaction amount if the QR code is static. For dynamic QR codes, this step is usually automated.
  5. Confirm Payment: Review the payment details. Authorize the transaction using your PIN or biometric verification.
  6. Receive Confirmation: You and the merchant will receive instant notifications to confirm the successful payment.

Is QR Code Payment Safe? 

QR code payments integrate multiple security measures to protect you. They use end-to-end encryption to ensure data confidentiality during transmission. Also, two-factor authentication (2FA), such as personal identification numbers (PINs) or one-time passwords (OTPs), adds extra security. 

However, you carry risks like fake QR codes and phishing attacks. How to mitigate these? Place your QR code in a safe place. Scan only trusted codes. Avoid unsolicited links. These steps will significantly reduce potential threats related to QR code payments.

Wrapping Up 

QR code payments are simple and accessible payment methods. Their mainstream adoption speaks volumes about their effectiveness. Just a bit of vigilance and QR payments give you speed, security, and convenience. 

FAQs

1. How can I transfer money immediately?

Use Payit’s “EasyTransfer” feature for instant transfers. 

2. How do I scan a QR code on my phone?

Open your QR code scanner app, point it at the QR code, and follow the on-screen instructions.

3. How can I send money to someone’s mobile?

In Payit, select the “Send Money” option, enter the recipient’s mobile number, specify the amount, and confirm the transaction. 

4. Are QR codes free?

Yes, generating static QR codes is free. 

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