In today’s digitally driven world, technology has increased the operational efficiency of businesses. One such technology is a quick response (QR) code that provides convenient payment solutions. Simple scanning through smartphones eliminates the need for cash or card transactions.
With new innovative solutions, businesses find ways to streamline their processes and enhance convenience for themselves and their customers. Payment QR code scanning enables faster transactions, cost-effectiveness, and improved customer satisfaction. Without much further ado, let us discuss payment QR code work and the ways it enhances convenience for businesses.
Fundamentals of QR Code
QR code is basically a 2D barcode which is scanned by digital devices. This code stores information as a series of pixels in a square-shaped grid that the users can scan easily. Not only payments but QR codes also facilitate convenience in other purposes, including app linking for download, account authentication, accessing Wi-Fi, and more.
With the Unified payments interface (UPI) enabled QR code gaining momentum in the digital world, it has allowed efficient transaction processes while improving the productivity of businesses.
Since you know about the QR codes, let’s understand the working of QR codes.
Working of QR Codes for Payments
Whether the merchant QR code is on paper or on screen, the users can scan it through any mode. A smartphone and tablet with a built-in camera and code scanner are required to process a merchant QR code.
For payment, users need to align their scanner over the QR code. The system immediately recognises it and sends a pop-up notification on your device to complete the process.
Some banks and payment apps also process a QR code to facilitate payment or bank transfers.
Here are the process of merchant QR code payments:
- Scanning the QR Code
To process payment through a QR code, users must scan it through a relevant scanning app. The smart devices must have a camera, and you need to open the payment app, select ‘scan to pay,’ and align it properly over the code.
- Relevant Data Extraction
After scanning the QR code, the app captures its image to analyse the pattern of the square. After that, the payment app processes the captured image to read the encoded data.
- Notification Push Up
Once the app reads the payment QR code, it sends a pop-up notification to proceed with the process. Scanning the code, the apps instantly direct you to the interface for adding more details. This is a crucial step before you proceed with the payment.
- Secure Payment Processing
After the user enters the necessary details on the payment apps, secure and encrypted processing is activated within the QR code. The app securely transfers payment information, such as amount, recipient details, and others, for verification. This further ensures safe and accurate transactions.
Benefits of QR Code Payments
Merchant QR code payments offer numerous benefits across various industries and applications, enhancing the payment experience for customers and businesses. Here are some of the benefits of using a payment QR code:
- Enhances Safety
QR code is a simple payment gateway option. It doesn’t store your customers’ sensitive information and just links your customer’s payment app with your account. The payment app encrypts the payment data of your customers, which enhances the safety of your customers. Payment QR codes eliminate the need to exchange personal information.
- Increases Customer Loyalty
If a shop or store has a QR code, it makes it convenient for customers to pay via any mode. By prioritising the payment choices of the customers, businesses show that they value their customers. This encourages your customers to build long-term relationships for future purchases.
- Easy Tracking
Payment QR codes facilitate easy tracking, and businesses can leverage this data to understand user behaviour and transaction patterns. The necessary information may include knowing the time of using the QR code, payment responsiveness via payment QR code, and bounce rate. Such data can help you optimise your strategies to scale up your business.
- Payment Completion Evidence
One of the biggest advantages of a payment QR code is that it provides you with proof of a completed transaction. The users can receive real-time updates about the payment confirmation to the merchants.
- Versatility
Payment QR code is not limited to any specific business industry. All businesses, including grocery stores, pharmacies, government institutes, and the apparel industry, can benefit from the ‘scan to pay’ feature. To accept digital payments, businesses must integrate payment QR codes with their billing systems.
Summing Up
With the increasing digitisation, businesses are adopting UPI-enabled payment QR code options to accept and process payments. Not just in shops, you can find QR codes or scan to pay options in every restaurant, movie theatre, and transportation facility.
There is a surge in integrating and using payment QR code apps among customers and businesses. Payment QR codes enhance convenience for businesses, reducing the hassles of cash flow management.
You can download the HDFC Bank SmartHub Vyapar app for reliable payment options online. It is an effective solution to digitise and ease your payment solutions. For more information, visit the HDFC Bank website today!
