Online payment or e-payment systems like Paypal embrace new ways to improve the way people do business online through the integration of QR codes, making cashless transactions even more exciting.
Paypal also allows merchants to sell using the QR code for a minimal fee.
The digital payment giant introduced QR codes to 28 countries already. Apart from the US, the QR code payment system was launched in Australia, Austria, Belgium, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, Slovakia, Sweden, Switzerland, Spain, and the U.K.
The main goal of Paypal is to help small businesses like farmer markets and restaurants recover from the financial challenges brought about by the pandemic by incorporating QR codes as one of the contactless payment options in their payment mix.
The QR code is a feature to its app which would make transactions fast and easy as customers won’t have to fumble around to find a PayPal.Me link. Plus, the default camera app (if it supports QR code recognition) on your smartphone could be used to make the process even faster.
Using the QR code system as a mode of digital payment, sellers will be able to print off a QR code or display it on another screen for customers with the Paypal app to scan.
For in-store purchases, you can also use the same QR code. Less hassle, right? Plus, the QR code is free to create and never expires.
Take note, customers will need an account with PayPal to pay you.
This is a good move for Paypal as touch-free payments are becoming more important since the pandemic happened, and for good reason.
The rollout of QR codes in financial technology benefits both the buyers and sellers.
Why do customers prefer contactless payments
More customers prefer cash-free transactions as it ensures convenience, security, and superior levels of safety.
QR codes are simply convenient for the customers as they no longer use their cards and input their pins in the payment terminal.
This yields a pleasant purchasing experience wherever you are. For example, if you are in the rush, you can just simply use your smartphone and scan the QR code to pay.
Another is when you are at home and you purchase a product online, you don’t have to copy-paste your account number and double-check the information each time as you can just save the QR code on your phone and use this for a smoother transaction.
After that, you will receive the receipt automatically after paying without any paper — a safe and eco-friendly transaction.
Through QR code-backed payment, you are not just saving time but your energy as well.
Apart from convenience, customers want secure cashless transactions as well. Through QR code-backed payment, the data can’t be manipulated through the naked eye.
Also, the square matrix structure is hard to alter after it’s been published. Dynamic QR code, a type of QR code that allows the account user that created them to change the information is often used by financial institutions as it heightens security.
Moreover, the data that’s exchanged through QR codes such as payment transaction details, is encrypted.
3. Ensures customer safety
PYMNTS and PayPal’s survey shows that customers have come to prefer touch-free payments due to the peace of mind that it provides.
Using touchless payments minimizes physical contact and customers spend less time in waiting lines and at payment terminals.
With a simple scan on your smart device, there’s no need for you or your customers to handle cash or cards.
How QR code rollout helps SMEs’ marketing efforts
1. Increases sales
The contactless QR code payments integrated with its digital wallet-enabled scan-and-pay experiences also help struggling small and medium-sized enterprises (SMEs) with cash flow and with their local marketing campaigns. Using QR code payments would drive consumer foot traffic back into their shops.
2. Builds customer loyalty
Customer behavior is important in every business that is why predicting what they like and how they transact payment is key.
Because of the speed and superb end-to-end customer experience that the QR code payment system provides, small businesses can keep their doors open and more customers would appreciate this innovation.
The fact that most customers own a smartphone, it is easier for them to adapt to the QR code payment system, making QR codes a part of their everyday lives.
Thus, a digital payment system not only attracts new health-conscious customers but also maintains customer loyalty.
3. Efficient access to transaction histories
As a part of any payment mix, QR code-backed payment allows sellers to keep track of the transactions easily. Business owners can also retrieve transaction histories and data trails through the QR code payment system.
PayPal QR code payment updates
Since May 2020 where PayPal launched its QR code payments for business use, it has already drawn more than 1 million merchants. Nearly $6.4 billion QR code and card payments in-store are processed in the first quarter in 2021.
PayPal executives are looking for positive outcome and said that QR code-based payments will continue to rise in 2021.
PayPal's executive also said that its merchants who use the QR codes are now experiencing sales from consumers who are frequent users of the said method.
Moreover, PayPal is also facing increased competition with the new services such as Apple Pay.
The future of QR code payment
As mentioned, QR codes are now paving the way for financial institutions and businesses to ensure customer loyalty and increase sales even during the pandemic.
There is no doubt that touch-free digital payment methods through QR codes have become a norm.
So leverage the benefits of QR codes to give your customers a safer and convenient experience.
Just a pro tip: Make use of dynamic QR codes as they can help you ensure security and in updating all your information behind your QR codes like URL instantly.
It also enables you to track valuable consumer data for more data-driven business goals.
Create your QR code on QRTiger: www.qrcode-tiger.com
If you want to generate your QR codes in bulk or have a QR code API incorporated into your system, you can also contact us today for further information.