Payment by QR code: what is QR, how to pay, advantages of the technology

On the one hand, a modern and convenient way to make transactions; on the other, it is a payment method that is familiar and accessible to almost everyone. All this is about QR codes. Let's get to know the technology better. In this article, we will discuss what it is, what are the advantages and, how to pay by QR code, as well as safety precautions.

What is a QR code

Quick response codes, also known as QR codes, are monochrome pixel images of an abstract nature. The difference between QR and a regular hatch code is that the former has more data encoded in a specialized format. In particular, this is a phone number, link, or text with <4 thousand characters. Information from the image code is read using a scanner, a special application or a phone camera.

What is QR code for payment? It contains encrypted data about a specific transaction: by scanning a pixel image, a person buying a product / paying for a service receives information about the number of purchases, cost, and payment functionality.

Payment by QR is convenient, fast and safe, therefore the technology is used everywhere. Moreover, the quick codes help to visit websites, connect to Wi-Fi, download applications, detect geolocation, get access to contact information, etc.

A QR code is created in 6 steps: select the type of information for encoding > encode the necessary data > add characteristics > create an image - a pixel picture > add certain markers and patterns > finally, add a module for correcting errors when reading the code.

Where you can pay with QR code

The tool is suitable for different types of transactions:

• online shopping: websites, markets, and online stores make it easier for users to order products by offering payment using a quick code. All you need to do is scan the QR code from the PC screen or other gadget and pay in the app;

• offline purchases: businesses place pixel codes in stores (at checkouts) so that customers can pay using a smartphone;

• bill payment: you can pay using a QR code for options such as bus and taxi rides, internet use, mobile communications, utilities, etc.;

• payment in a restaurant, gym, clinic, beauty salon, etc. In restaurants, it works in the following way: each table is assigned a unique QR code, customers place orders, scan the code with a smartphone, verify that everything is correct and then pay.

In banking applications, you can pay for public services using a QR code. Special funds receive money for charity in this way. Tickets for concerts, cinema, sports matches, etc., are also purchased using QR codes.

Classification of QR codes

Codes are classified by different parameters.

By the type of encoded information, there are text codes (transmit data, such as instructions), URL codes (encode links to pages), event or contact QR codes (they encrypt event data or contact information), and QR codes that allow you to pay for a product/service.

By the number of scans, there are dynamic and static QR codes. The former are created for each new payment and contain details for a specific transaction (i.e. they are single-use). The latter (reusable) are generated once and contain a specific set of details, while the buyer specifies the payment amount each time. By the time of reading, codes are categorized into two types: limited (valid for a specific period) and unlimited.

Also, QR codes can differ in content: ready for payment (encode the quantity and cost of what is being purchased), open without an amount (encode what will be purchased without price and quantity), and open without specifying the purchase (encode the seller's data).

Advantages of QR code payment

The list of advantages of such a payment method includes:

• simplicity and convenience. Customers appreciate the level of comfort when you only need to hold your smartphone to the picture, scan the code, and confirm the transaction. There is no problem in the absence of cash or cards;

• high speed. The transaction only takes seconds. Payments are made quickly (faster than with a bank card). There are practically no queues;

• minimal investment in technology. Another point on how payment by QR code is beneficial to the seller is the absence of costs for additional equipment for conducting transactions;

• the most secure transactions possible. The data of the transaction participants is protected - for this, information encoding and authentication using different methods are involved. The reliability of payments is also high since the uniqueness of the data in each code eliminates the possibility of errors.

It is also more profitable to use QRs than bank cards since the commission is lower.

Algorithm for paying by QR code

The seller enables QR payments by contacting the bank where they have an account. Then, dynamic/static codes can be generated, and payments can be accepted. To access the technology, business clients require a smartphone, Internet, and a bank application.

How to pay by QR code? Special tools or software generate a code for the seller > the client scans the image with a smartphone and receives payment data > the client approves the transaction in the application > if the payment is successful, the payment data is sent to the business/special payment system to check the amount of funds and authenticity > after verification, the money from the client's account goes to the seller/payment system > the parties to the transaction receive a message about the completed purchase.

Paying by QR code: how to do it safely

High transaction reliability does not eliminate the need to adhere to safety precautions when paying by QR code.

Key recommendations for clients and businesses:

1. Do not scan codes that you are not 100% sure of or damaged images.

2. Check the transaction amount on the screen with the actual purchase price.

3. Do not use the public Internet - only a secure connection.

4. Card numbers, passwords, and PIN codes are not entered when paying by QR code.

5. Conduct transactions in official bank applications. Regularly change passwords and update software.

It is also essential to have an up-to-date antivirus on your smartphone.

Conclusion

QR code is a modern and universal payment technology that gives businesses and their clients many advantages. The main ones include speed, security, and accessibility. Due to all this, the use of pixel codes takes the convenience of transactions to a new level and promises to spread everywhere in the future.

And if your company's payment system needs a boost, this is a reason to turn to PAYGATE for help. With 18 years of experience and innovative technologies, we solve the problems set by our clients and help businesses make payments more efficient.