The idea of the Quick Response (QR) code came into being in 1994, but almost 20 years later, this technology emerged as a popular merchant payment solution in India. With the rapid progression of this technology along with the Unified Payment Interface (UPI) the QR code payment method is likely to estimate a total transaction amount of Rs 12,500 crore by 2026.
There are multiple reasons behind this emerging popularity, starting from convenience to security. However, before moving to its advantages, you need to know more about QR.
What are QR code payments?
QR codes are black-and-white patterns that you scan using your mobile phone’s camera to complete an activity. For instance, a car company offers this code for you to discover the features of a vehicle. So once you scan it, you will be redirected to the page where the car details are.
Now, the same principle applies to payments as well. Once you scan the QR code of a merchant, it will redirect you to the payment gateway, where you need to insert the PIN and complete the transaction.
There are two types of QR codes for transactions, i.e., static and dynamic. Here are the details of both:
Static QR code
A static QR code remains unchanged throughout, and it contains the account details of a merchant. So once you scan this QR code, you need to enter the payment details manually, i.e. the amount and then complete the transaction.
Even though this helps the merchants facilitate the payment, they have no control over the amount a customer enters.
Dynamic QR code
As the name suggests, this QR code is not static. It changes with each transaction. Therefore, to accept a payment, this QR code includes details like the merchant’s name, account details and, most importantly, the amount. Consequently, you don’t need to manually enter the amount, which offers the merchants more control.
Benefits of integrating QR code payment system for merchants
Let’s understand the reasons why integrating a QR code-based payment system is essential.
Eliminates the manual intervention
The biggest reason behind installing such a service is to lower the dependency on manual transactions. Since tracking cash transactions is complex and can be error-prone, you can eliminate all of that with a QR code making the whole business process become smooth, which the customers appreciate.
The Government of India does not levy any Merchant Discount Rate on UPI. So payments made through QR do not come under this provision, which reduces the cost of your business.
Better payment experience
With QR code payment apps, you can now pay for anything you buy without hassle. The whole process only takes a few seconds to complete, and you don’t need to wait in line to make the payment.
Moreover, it reduces the hassle of counting the change and carrying cash everywhere. You can simply open your smartphone and get the job done.
The safety of transactions is another reason merchants opt for this facility. When you pay via cash and cheque, there is a risk involved. However, all you need to do here is scan the code and make the payment, even if it is a substantial amount.
Besides offering a great experience, you also get to enjoy the convenience it provides. Since the whole process is accessible through your mobile phone, you can make a payment anywhere, anytime.
For instance, you need to pay your electricity bill, but you suddenly remember it late at night. You can simply go to the official website of the electricity provider, scan the QR code and make the payment without any hassle.
The introduction of QR code-based payment systems has changed the Indian payment system. You can now easily buy and pay for even a small thing through this method. QR code payment apps like ICICI Bank’s InstaBIZ app are tailored for companies to manage their business finances easily. These apps’ features will help companies plan and execute their financial decisions better and grab every growth opportunity.