The COVID-19 global pandemic has left many businesses with no options but to go online. Fortunately, many enterprises are finding e-commerce much easier than they previously thought. The adoption and active use of QR Codes is one of the emerging trends that has helped businesses stay functional despite the ensuing crisis. QR Codes are instrumental in the international payment system, which has recently revamped with the current Covid-19 containment measures.
Essentially, the QR code technology has led to a cashless transaction infrastructure that is fast and cheap. This ideal concept has made it possible for people to transact and even easily earn real money online during the quarantine.
It is fascinating how various technologies combine to complement the nature of modern lifestyles even in unprecedented eventualities like the 2020 pandemic induced recession. In this article, we will discuss all the information you need to know about QR Codes and why it is preferential given the current circumstances.
How Does the QR code payment Work?
Even though it is the seller who develops QR codes and the payment link in most cases, a buyer may create their QR Codes if they want to. The working mechanism is straightforward. It entails the following process:
- Seller generates the QR Code and shows the buyer.
- The buyer scans the QR Code using an application and then clicks the “Pay Button” for processing.
- Funds are transferred to the seller’s bank account.
- The seller generates a receipt after the confirmation of payment.
Types of QR Codes
We have two types of QR codes, namely the Static and the Dynamic codes.
Static Codes – Once created, these codes cannot be changed. In other words, they have fixed information. Also, static codes do not gather any tracking information and include codes for emails and texts.
Dynamic codes – Unlike static codes, dynamic codes can be edited after completion. Both the QR code and the redirection URL can be edited as many times as possible because the information you pass on is not encoded in QR itself.
You can also learn more about Static vs. Dynamic QR Codes.
Advantages of QR Codes
- Affordable compared to Visas and Mastercard since there are no intermediaries
- Low maintenance costs
- Promotes transparency in business transactions
Disadvantages of QR Codes
- Susceptible to hacking and online fraud if standard security protocols are overlooked.
SMEs and QR Codes During COVID-19
Most Small and Medium Enterprises (SMEs) have benefited immensely after adopting the QR Codes. Although the coronavirus pandemic has adversely affected many economies, this digital payment process has given many industries the much-needed lifeline.
QR codes have been able to solve most issues that affect SMEs by promoting digital payments that are simple and secure. They have also helped those that do not have bank accounts for digital non-cash payments. Besides, the marketing of the QR codes is flawless as it does not require a lot of information to comprehensively explain how it is used.
QR Records Around the World
China is the best example of countries that have successfully adopted the use of QR Codes. In the past three years, there has been a tremendous growth in the offline scan to pay transactions, hitting $1.3 trillion by 2019. The QR Codes continue to spread and have now reached many countries globally. Another good example is Saudi Arabia. To encourage innovation in the country, the Saudi Payments Network or mada focuses on strengthening its financial sector using the latest technologies. This institution has developed a High-Tech Payment System that has enabled seamless transactions among all the stakeholders.
QR Codes for Product Information and Marketing Apps
The QR Codes are useful in providing information about the products found on the shelves. If you want to bridge the gap between digital content and physical exploration, you need to use QR codes. To bridge this gap, giant firms have rapidly adopted this technology. Since the cost of printing labels is quite expensive, the use of QR codes minimizes these costs by displaying prices and promotional information.
QR Codes were not popular in major business landscapes like the USA until the COVID-19 pandemic. In a sense, as much as COVID-19 has caused massive problems throughout the world, it has benefited some industries, especially companies that are proactive in investing in technology. It is projected that more people will scan the QR code during the pandemic. In the United States alone, approximately 11 million people are estimated to scan the QR code before the pandemic is over.
From this precedent, there is no doubt that QR codes act as a revelation of technological trends taking over during the pandemic.
