2021 is a special year with the return of several old trends such as Buy Now Pay Later (BNPL) and QR Codes. Being introduced in the 90s, QR Code Systems have made a big comeback with progressive improvements in the Fintech industry. Due to COVID-19 outbreaks, people are looking for cashless payment methods such as digital currencies, BNPL platforms, or QR Codes to prevent the spread of coronavirus. The reason behind the rapid rise of QR Codes is the Covid-19 pandemic (social distancing) and the widespread use of iOS and Android QR codes. Additionally, as the new customer behavior embraces more digital banking, borderless and contactless payment are becoming common. Then, a QR Code System, along with other touchless payments is predicted to be the future of Financial Technology. Now, let’s find out how QR Codes work and what benefits it bring to users.
1. What is a QR Code System?
A QR Code, also known as quick response, is a type of bar code that stores data in a physical representation and the form of dark-light spots with limited space. It offers a huge data capability, which is about 7,000 digits or 4,000 characters such as punctuation and special characters. Phone numbers and internet addresses can also be encoded with QR Codes. A QR Code System stores information as a series of pixels in a square grid that can be read from top to bottom or from right to left. To scan QR Codes, users just need a digital device to read them, for example, a bar code reader that has the capability to scan QR codes or a tablet/ a smartphone with an inbuilt camera.
Here are some most common use cases of the QR Codes System:
- Link directly to download an app
- Link directly to websites, social media channels, etc
- Provide rewards and discount programs for customers
- Identify online account and verify login information
- Access Wi-Fi passwords
- Send and receive money
A QR code with a payment link can be generated by both sellers and buyers. However, it is usually sellers that generate QR codes. Here are the typical process of creating a QR Codes for payment
- The seller creates a QR code with payment links
- The buyer scans the QR code using their banking or finance application and clicks the "Pay" button
- Money is automatically sent to the seller’s bank
- The seller receives a payment confirmation and the payments system issues a receipt to the buyer
Normally, QR Codes can be divided into 2 main types: static and dynamic. Each QR Code type has different pros and cons. Hence, businesses can rely on that to select suitable ones for specific purposes.
a. A Static QR Code System
Contents of a static QR Code are un-editable once it has been created. The URLs of websites are involved directly in the static QR Codes. Businesses that require quick and simple payments such as delivery services, offline retail, taxi drivers, or street shops will find this kind of QR Code suitable. It is extremely convenient for customers when they just need to scan the QR Code with a smartphone to make automatic payment without any steps required. Another use case of static QR Code is generating Wi-fi passwords in shopping centers, restaurants, coffee shops, etc. However, Static QR Codes still have some drawbacks. For example, it is unable to store & track data such as how many codes have been scanned or the location of scanners. Additionally, the amount of money scanned needs to be added manually by consumers. Since a static code is unchangeable and unable to store data, it is usually used in mass for events.
b. A Dynamic QR Code System
In contrast, a Dynamic QR Code System can be unlimitedly changed and edited. It also provides several extra features such as access management, scan analysis, or password protection. If Static QR Code Systems does not provide scanners’ information, the Dynamic ones allow businesses to gain information details such as the number of scanners, their location, types of devices used for scanning, or their phone numbers.
When using static QR Code systems, customers need to add the amount of expense manually while the dynamic QR code offers a better payment experience as scanners just need to scan codes for payment and merchants have more power with information.
2. Advantages of a QR Code System
a. Tracking data easily and efficiently
A Dynamic QR Code system is one of the useful assistants that provide data for analyzing a business's performance or marketing strategies. For instance, when marketers of a brand execute an advertising campaign through print media such as magazines, they can not collect data for analytics. However, with a QR Code System, marketers can track the scanner’s activities to find out their reaction to the brand’s content. An effective QR Code system helps the brand to find out what kinds of content will make the strongest impacts on customers such as making them hit the “subscribe”, “buy now” or “get consultant” button. As a result, businesses can rely on the data collected from QR Code Systems to have a deeper insight into customers’ behavior, then adopt and optimize a brand-new marketing campaign.
b. Increase customer experience
Currently, there are a variety of online and offline businesses that use QR Code Systems for fast and safe automatic payment. With several advantages such as convenience and time-saving, QR Codes greatly contribute to enhancing customers’ experience. When clients hand-delivered write down the web address, visiting the wrong websites or fake webs usually occurs. In contrast, by using QR Codes, customers don’t need any additional steps except for scanning codes to directly access the official websites, contact forms or make transactions promptly. The easier and quicker services, the more opportunities for businesses to be chosen by customers. Especially with B2B businesses, their potential customers (enterprises or other businesses) are seeking quick and effective services or products. If your business can offer them a suitable one with the easiest and fastest contact forms or payment methods that are time-saving, reliable, and professional, the rate of being selected will be higher.
c. Promote networking
QR Codes System is a great way to build a strong and long-lasting relationship with customers. Currently, many businesses in different industries have used a QR Code System to directly help their customers access and join their network platforms such as social media channels, brands’ communities, forums, etc. Consequently, they can easily follow social media pages, so products of companies will have more chances to appear on customers’ newsfeeds and gradually make them remember the brand names.
One of the most popular QR Code Systems uses is “call-to-action”. A call to action (CTA) is a special term in marketing, describing the next steps that marketers expect their customers to take. Normally, the CTA strategies are directly linked to sales. For instance, here are some examples of a CTA QR Code System
- Rewards and discount program: Scan the QR Codes for coupons or rewards
- Call: Instead of writing a phone number by hand, just scan QR Codes for automatic calling
- Purchases: Almost businesses that use QR Code Systems have a “Buy Now” button
- Video: Businesses usually use QR Codes that are directly linked with introduction or review videos to promote their products.
QR Codes systems can be considered as leverage for businesses to attract and interact with their customers in the fastest way.
3. How to get started with the QR Code System?
QR Codes are one of the easiest and fastest touch-free payments that businesses can provide their customers. No matter what industries you’re in, building and adopting fast, reliable, and effective payment systems such as a QR Code System, can improve customers’ experience and then, increase the retention rate.
So, if you are wondering about leveraging QR Code systems to your businesses, don’t hesitate to contact us for free consulting. SotaTek is a leading software development company that provides Custom Software Development and Consulting, such as Fintech Software Development Services. With the best fintech software developers and professional expertise, we are confident to deliver the best-suited Fintech Development Services, including QR Code Development Services.