Convenient payment services have emerged as a popular trend in financial technology. QR code payment technology has explored financial technology in various sectors such as retail, banking, medical. A variety of payment services developed in the domestic market increases convenience to the customers and improves the efficiency of payments.
Quick Response (QR) code refers to the two-dimensional bar code system that is an efficient way to store the data. Smartphones are used for scanning QR code and convert it into some useful form. Companies can use QR code as an advertising tool as product information and information related to the organization along with the payment option.
Growth in the smartphone industry and Internet penetration boosting the QR payments
It is seen that the number of smartphone users is rapidly increasing across the globe. Smartphone manufacturers are introducing newer technologies in their smartphones. Most of the smartphone manufacturers are introducing QR Code scanning features in their smartphones without third-party applications. Also mobile app developers and fin-tech companies working on QR payments. These applications from fin-tech app developers provide a digital wallet to the app users where users can add the money from his bank account. This is boosting the smartphone users to adopt digital payment technology as a convenient method for carrying out hassle-free transactions with real-time notifications.
Convenience for accepting the payments for retailers and merchants
Many merchants, small businesses and retailers are adopting digital payment options. Accepting payments using QR code is very cost-effective. Retailers do not need to invest in point of sale payments machines and paying charges on transactions. QR code payments provide a platform to the merchants at a lower cost. It is very useful in accepting a number of small value transactions for retailers and merchants. Simplified payment options will help to increase efficiency and reduces the time and cost as well.
Secured Payment Platform: Fin-tech companies are continuously working on the designing secured payment platform and payment gateways. They started introducing a biometric interface for making QR payment to minimize the risk of fraud in payment. This will make QR payments more secure which leads to attract more smartphone users to use QR payments.
Move towards a smart nation with the cashless economy: Cashless economy and digitalization are the steps towards the smart nation-building. Many countries are moving towards a cashless economy where a small amount of cash is used for the transitions with the help of digitization. Developing countries are started investing to design the payment ecosystem. This payment ecosystem allows smartphone users to use multiple payment options. Governments are pushing business and the people shift to the digital payment mode from the traditional cash transitions.
Quick response code payments are simple to use and technologically advanced payment option. The merchant, retailers and the business can use the QR code as the customer data collection tool. Collected data from the QR payments will help to understand the buying behavior of consumers maintaining a relationship with the customers as well.
Merchants who do not accept this might have left out the consumer’s choice. So, it is going to be mandatory towards the integration of the digital payment ecosystem.