• Delia Pedersoli, COO at MultiPay Global Solutions


• 27.03.2023 11:15 am
#payments

Next year will see the 30th anniversary of Quick Response technology, more commonly known as QR codes. However, ask most people about these nifty black-and-white matrices and it’s likely their first thoughts will turn towards the pandemic when familiarity with QR codes skyrocketed. From menus and marketing to ticketing for concerts and trains, QR codes are today a vital part of many of our everyday interactions.

However, the power of QR codes goes beyond providing a simple link to a webpage or app. The simplicity and versatility of QR codes means they can also be easily incorporated into a growing range of quick and innovative ways to purchase goods and conduct transactions, combat counterfeiting, and even create virtual shopping experiences for busy shoppers.

So, how, at 30, is life for the QR code only just beginning?

A Truly Contactless Payment Experience

In many countries across the world, especially in Asia, QR code payments are already commonplace as cash and card transactions continue to wane. Surging in use as a means to improve levels of financial inclusion in developing regions, and providing an alternative to already established payment methods, Juniper Research predicts the global spend using QR code payments could reach over US$3.3 trillion by 2026.

Whilst payment methods such as mobile tap-and-go, and contactless credit cards, may be marketed as ‘contactless experiences’ they still require an element of human touch on shared surfaces, for example, when selecting payment options at a self-service checkout or typing in a pin as an extra level of security. However, requiring just a smartphone and no need for any other device, QR codes represent a quick, convenient, and truly 100% contactless payment experience. 

Usually, QR code payments can be made when a customer uses their smartphone to scan a code and are then taken to a page or app to enter their payment details or use a mobile payment method such as Google Pay or Apple. Alternatively, app-to-app payments are also possible where both parties open the relevant app and scan the receiver's QR code, agree upon the sum of money to be paid and process the payment.

Bridging the in-store and online experience, QR codes remove unnecessary friction from the customer journey as well as offer the capability to combine payments and loyalty programs, which are vital in encouraging their uptake. 

Turbocharging Customer Experience

Easy to set-up in any scenario or setting, QR codes can help retailers quickly expand their footprint to new locations without the need for a physical set-up or store. Not only can this help businesses open-up previously out-of-reach opportunities to drive revenue, but also better tailor the customer experience around the shoppers’ needs and habits.

For example, Tesco has started trialling the use of QR codes to enhance the shopping experience for time-poor ‘workaholic’ shoppers. In South Korea, the grocer has used QR codes to power its first scan-to-order virtual store. Located in subway stations, shoppers can scan codes for items whilst commuting to later have the orders delivered straight to their doors.

Importantly, as previously mentioned, QR codes can also feature as a key component of loyalty schemes. Beauty retailer, Sephora, for example, has integrated the use of QR codes into its customer loyalty programs with the introduction of QR code beauty passes. Furthermore, by placing QR codes on products, customers can also quickly find out more information about what items they are buying with the dual benefit of freeing up customer service representatives’ time.

With such schemes exposing shoppers to new ways QR codes can be used to enhance their experience, they are also a vital way of driving consumer trust around the technology more widely, which will consequently enable brands to push the boundaries of what is possible even further in the future.

Keeping Counterfeit at Bay

Posing a major issue for, retail, fashion, luxury goods and pharmaceutical industries, counterfeit products damage the profitability and reputation of many enterprises. According to data from the Global Trade in Fakes report by the OECD and EUIPO, trading counterfeit goods amounted to roughly $449 billion in 2019 – more than Ireland’s entire economy!

Beyond the financial cost, counterfeit products also impact consumer trust and confidence in a brand. However, QR codes, through their distinctiveness, provide a powerful barrier to counterfeiting and can easily be incorporated into packaging and products to improve traceability, security, and privacy. 

Linked to a website, or app, customers can scan a QR code to check the authenticity of a product labelled with a code that acts as a unique online identifier and login. The same approach means it’s also possible to brands, and wholesalers, to confirm the authenticity, and location, of products within their supply chain, improving trust between sellers and ensuring standards.

Building Bridges Between Borders

Enhancing the traceability of goods across borders is not the only away QR codes can ease international transactions. In 2022, several Southeast Asian countries – Malaysia, Philippines, Singapore, Indonesia and Thailand – set about to integrate their respective QR code payment systems. 

Traditionally using the US dollar as an intermediary for buying goods and services, the new system allows for travellers and businesses to bypass dollar exchanges and simply scan a QR code to pay in local currencies. Eventually, the central banks leading the scheme want to link this network with other regional clusters across the globe, easing and simplifying payments for travellers and businesses alike.

As the QR code reaches its 30th birthday next year, it really does seem we are only currently scratching the surface of what is possible. In the near-future, we can expect rapid growth in space driven by the technology’s ease-of-use and versatility. Vitally, when it comes to customer experience, consumers increasingly expect quick and seamless transactions no matter how they choose to pay - QR codes truly make this possible.