Compared to NFC, QR Code is a much cost-effective and viable option. Most retailers have barcode scanning hardware. It’s integrated with their POS for billing of products. So there is no need for extra hardware.Let’s assume small businesses do not have scanners. Even then buyers can make QR Code payments.
How Do QR Code Payments Work? Businesses have options on how they wish to process QR Code payments based on their scale of business.
1.Buyer-to-Large Retailer Transactions
This system of QR Code payment applies to large retailers such as supermarkets. Let’s assume they have barcode scanners at every POS. This is how it works:
- Let’s say a buyer picks up items worth $400 at Walmart and goes to the cashier for checkout
- The cashier scans each item and generates a bill of $400. He generates a unique QR Code on a screen near the POS
- Buyer opens the payments app on his/her smartphone, scans the QR Code, and authorizes the payment
- The cashier gets a notification that buyer has made the payment and prints the sale receipt
2.Buyer-to-Small Business Transactions
This mode of QR Code payments applies to small businesses and retail outlets. Let’s assume they do not have barcode scanners at POS.This is how the process works:
- Buyer picks up items worth $12 at a small store
- The cashier requests buyer to make a payment and points at a printed QR Code near the POS
- Buyer opens the payments app, scans the QR Code, enters the amount, and authorizes the payment
- The cashier gets confirmation via SMS
Note that in this case, the buyer enters the amount and the merchant has a permanent QR Code. This QR Code helps the buyer app to identify the merchant account.
3.Peer-to-Peer Transactions
This mode of QR Code payment applies when an individual needs to pay another. For example, friends, family members, or self-employed professionals.This is how it works:
- Marsha got some plumbing work done from Ross, the plumber and she now owes him $50
- Ross opens the payments app and generates a QR Code worth $50
- Marsha opens her payments app and scans this QR Code on Ross’s phone to allow the transfer
- The transfer is complete and both Ross and Marsha receive an SMS confirmation
Conclusion: For businesses of all sizes, small or large, QR Code payments is the easiest way to go cashless. It is far more inclusive than NFC-payments and much more affordable. Also, QR code based payment provides convenience as well as enhanced security, preventing users from identity theft or loss of critical information.
References:
https://tpay.com/en/mobile/qr-payment
http://www.businesscardsqrcode.com/qr-payments.html
http://www.bpay.com.au/Business/Large-Business/BPAY-Services/QR-codes.aspx