The content of this article is provided for informational purposes only. You should always obtain independent business, tax, financial, and legal advice before making any business decision.
From fast, easy payments to interactive marketing campaigns, QR codes for businesses can be a game-changer. They have helped revolutionize the way merchants interact with their customers, opening the door to a new level of connectivity.
What are QR codes? They are the square barcodes that you might see on restaurant tables, at cafe checkout counters, or even when you're logging into a streaming platform. QR codes can be printed on paper or presented on a screen and then scanned to access more information.
So how do QR payments work? A customer scans your QR code with their phone's camera, which opens a payment app or page. They confirm the amount, and the payment lands in your account in seconds. No cash, card, or terminal needed.
For businesses looking to offer QR code payments, it's important to understand how to create QR codes and make the most of this innovative technology.
In this guide, we'll break down the basics of this powerful tool, from how it works to how to set up QR codes for payments.
A QR code may look like a random mix of scribbles and black-and-white squares, but each slice contains several layers of information. When scanned with a compatible app, all that information gets put together in the right order for the code to be read, and the square markings in the corners of a QR code tell an app the orientation of the code.
The QR code itself doesn't move money. It encodes a link or payment details that tell a payment app to start the transaction once it's scanned.
But how do you scan a QR code? There is no right or wrong way. Customers can scan the code from any angle without worrying that it will be read backward. Alignment markings embedded in the code tell the app if the surface the code is printed on is flat or curved so the app can "straighten" out the code to read it correctly.
If you've noticed that QR codes have a space surrounding the square, you may be surprised to learn that space is considered part of the code. It's called the quiet zone, and it's there to help the smartphone app recognize where the code stops.
Learn more about the differences between the two scanning technologies: QR codes and barcodes.
Because a QR code can hold far more information than a barcode, it can be connected to payment processors like PayPal. With QR codes, you can start accepting contactless payments quickly, all without physically handling cash, signing receipts, or even interacting face-to-face. The scanning process allows the payment app to decode the information and initiate the transaction, enabling swift and convenient cashless payments.
From sending emails to accepting payments, QR code uses are vast and varied.
It's also important to understand that there are two different types of QR codes:
This type of QR code stores data that, once created, will be uneditable. In other words, you won't be able to update the QR code information. For example, if you create a QR code for a one-time campaign, there will be no option to revise that same QR code a few months later with a different campaign. These QR codes are best used for linking a company website, email, or another piece of information that is unlikely to change.
For payments, static codes suit one-off or lower-volume sales, like a pop-up shop, a market stall, or a small cafe.
A complete payments package on a platform you trust. Discover PayPal Complete Payments.
Also known as dynamic QR codes, these QR codes can be updated indefinitely. For instance, if you want to redirect customers from your website to a campaign landing page, you can simply amend the QR code without creating a new one or risking a 404 error.
Dynamic codes work well for busier retail and restaurant settings, and for recurring payments, because you can update where they point and even pre-fill the amount.
No matter the type you use, QR codes can store all types of information, including (but not limited to):
There are many benefits of QR codes for small businesses. QR codes have the potential to transform the payment process and improve customer experiences.
As contactless habits stick, more small businesses are adding QR code payments as a low-cost way to get paid both in person and online.
Notable QR code benefits can include:
It's important to find the QR code payment solution that best meets your unique business needs and can be integrated into your payment processes. When selecting a QR code payment solution provider, consider these key factors:
Compatibility: Opt for a provider that supports a wide range of devices and operating systems to accommodate your customer base. Ensure the solution is compatible with popular mobile payment apps and can be seamlessly integrated into your existing POS system.
Security: Choose a provider that employs robust encryption protocols and complies with industry standards for secure transactions.
Ease of use: Select a solution that offers a simple and intuitive interface for both customers and staff. The scanning process should be straightforward, and the payment confirmation should be clearly displayed.
Customization: Look for an option that allows you to incorporate the QR code in your brand and your way of doing business. This may include integrating the payment QR code in your printed marketing materials or customizing the code with your brand colors and logo.
Transaction speed: Swift transaction processing is essential for a seamless customer experience. Choose a solution that ensures payments are processed quickly.
Cost: Evaluate the pricing model of the provider. Some charge a flat fee per transaction, while others may deliver a subscription-based model.
Support for multiple currencies: If your business deals with international customers or currencies, choose a provider that supports multi-currency transactions.
Setting up a QR code is relatively simple and quick. It doesn't require any special hardware or scanners, making it easier to use compared to other touch-free payment types. When customers shop in person, paying via QR code can be as simple as clearly displaying the code and allowing them to scan it with their phone's camera and pay via an online payment processing portal or an app like PayPal.
Here's a quick step-by-step guide on how to get a QR code for your business and accept QR payments with PayPal:
Learn more about how to receive payments from customers using a QR code.
Once you've chosen your QR code payment solution, implement these QR code best practices to optimize this new payment method:
As businesses seek new ways to improve experiences and diversify their payment methods, QR codes stand as an innovative solution. By incorporating QR codes into their online and in-person buyer journeys, businesses can seamlessly meet customers across platforms with valuable information, creating a more intuitive path to purchase.
Yes, QR code payments are generally safe when you use a trusted provider. The QR code itself is just an encoded link, and your customer's phone adds another layer of protection through built-in authentication like Face ID, a fingerprint, or a passcode before any payment goes through.
QR codes are one of several contactless payments you can accept, and the main risk isn't the technology itself but tampering. Scammers can cover your code with a sticker that points to a fake site, a tactic known as "quishing." To reduce that risk, laminate printed codes, inspect your displays daily, prefer dynamic codes, and remind customers to scan only your official code.
For a wider look at protecting in-person payments, PayPal's small business guide to contactless payments covers how encryption and tokenization help protect each transaction.
With QR codes, you can start accepting contactless payments quickly. If you also sell face-to-face, Tap to Pay and a POS system let you take payments on the same account, so your in-person and online sales stay in one place.
Ready to get paid by scan? Set up QR code payments with PayPal.