QR-Codes – How Can They Help Your Business?
2021 was the year of the QR-code. Due to the rise in popularity of digital wallets as an alternative payment method, QR-codes are fast becoming a staple at the point of sale. So much so that businesses that don’t have a point of sale system setup to scan QR-codes could be losing out on sales.
So, if your point of sale system doesn’t currently accept QR-codes, this blog will explain why it should.
Can QR-Codes Help Your Business?
What Are QR-Codes
QR-Codes have been around since 1994 when they were first introduced for use in the Japanese automotive industry. But in recent years more uses have been found for them and QR-codes have become more popular for everything from marketing to payments.
While many might think of QR-codes as just another form of barcode, they actually have advantages over the traditional barcode.
QR-codes can store a large volume of data. Much more than barcodes can. They can be scanned from a screen as well as paper, and can be read even if part of the code is damaged. QR-codes are also encrypted, keeping their information much safer.
When a QR-code is scanned the vertical and horizontal patterns are decoded by the software installed in the scanner, and, if the QR-code is for a digital wallet, the point of sale system will complete the sale without any credit, debit, or banking information needing to be exchanged.
While in its initial years the QR-code didn’t take off as expected, it still played a crucial role in countries like China, in QR-code based mobile payment services as it enabled businesses to accept digital payments without investing in costly hardware. Now almost 1 billion Chinese consumers use digital wallets, and QR-codes, as their preferred payment method.
How Are QR-Codes Used for Payment
There are plenty of ways for QR-codes to be used by businesses. From marketing to customer service. But we’re going to focus on using them for payments.
QR-codes are primarily used in payments that involve digital wallets. When the consumer is in a store and ready to make a purchase, all they have to do is take out and unlock their phone, and have the clerk scan the code provided by their digital wallet of choice.
QR-codes can even be used for e-commerce, as long as the payment gateway or e-commerce solution supports it. All the consumer would need to do is scan the QR-code on the computer screen with their phone’s camera, or login to their digital wallet. And just like that the purchase is complete.
The QR-code will produce a unique token for the transaction that will securely transfer the consumer’s payment information to the retailer’s point of sale system. No handing over, or swiping, or inserting a credit or debit card. Just a quick and easy process that completes the sale and leaves the customer satisfied with their purchase. It’s also contactless, which is critical in keeping shoppers and store associates safe during the pandemic.
The Security of QR-Codes
Payments made via QR-codes are extremely secure, and might possibly be the most secure payment method currently available.
As opposed to a credit or debit card, which is a direct link or provides direct access to your credit company or bank, a QR-code is simply a tool used to exchange information. Any payment data that is exchanged between the code and the point of sale system is encrypted in a token unique to that transaction.
There’s no risk of losing the code or having someone steal its information, like with a credit or debit card. Every digital wallet that uses QR-codes has security features in-place to keep the consumer’s information safe, on-top of the security features already built-in to their phone, such as unlocking your phone with your biometrics.
Why Should Your Business Leverage QR-Code Based Payment Options
While credit and debit cards are here to stay, digital wallets are quickly growing in popularity. In North America, PayPal and Venmo have become the preferred payment methods for younger generations, like millennials and Gen-Z. The extra layer of security, plus the ease and speed of payment has made these tech-savvy generations adopt these new payment technologies.
But maybe even more so than North America’s adoption of digital wallets and QR-code payments, your business should be taking advantage of QR-based payments because of the amount of international consumers whose preferred payment method is digital wallets.
Digital wallets in Asia Pacific countries alone account for 58% of regional e-commerce payments, and have surpassed cash at the point of sale.
In China, digital wallets process trillions of dollars of transactions every year for the almost 1 billion Chinese consumers who use them as their preferred payment method. When travelers from China and other Asian countries visit North America, they prefer to pay using these digital wallets.
But, they tend to run into roadblocks. One of the main ones being that businesses don’t have the capability to scan QR-codes. And if they do, they usually don’t have the proper software to accept the preferred Asian digital wallets like Alipay or WeChat Pay. Leaving these consumers without a way to make purchases, and with businesses losing sales.
But there is a solution. A solution with no setup costs or annual fees. We, at Pockyt, want to help connect the world through commerce. With our simple software solution businesses like yours can reap the benefits of a point of sale system setup to accept international digital wallets, and open your business to the over 2 billion Asian consumers who use them (online or abroad). Our merchants also save over 65% in processing fees when compared to international card acceptance.
To learn more about how Pockyt can help expand your revenue stream, speak to our team today.