When QR Codes Are Lovable…
QR code was designed to be easy to use, but is it really?
The invention and spread of QR code (Quick Response Code) is from a number of reasons: very easy to produce, barely costs anything and can be used whenever available.
QR code has never been a thing here in the US (things might start to change with new iOS 11), but in China it is everywhere.
As WeChat and AliPay are on everyone’s phone, “SuperApp” is not a new concept in China. As a ‘SuperApp’, it can be used for many purposes: shopping, calling a ride, paying bills… you name it. Among these functionalities, almost all involve using QR code.
So I thought why don’t we talk about QR code in China? I will approach this topic from three perspectives: user experience, growth and future steps.
“I don’t know how to scan it” — Many Confused Users
User Experience
- What is a QR Code?
Here is an example:
It works just like a bar code where information is stored.
- How to use it?
In order to interact with whatever the QR code carries, all you need to do is scan it (duh). However, most smartphones do not have a native QR code scanner (yet), meaning that users will have to rely on some other tool. This creates a barrier.
But how to solve this? Simple, build a scanner inside the app, and make it visible.
For example, WeChat users only need two taps to use QR code anywhere they see one.
Once user scans the code, the app will go to what the code contains: such as a landing page, a payment portal, App Store…etc.
Let’s look at a few more examples.
In WeChat, the “+” button on the main interface takes users to two of the most frequently used features — social and payment.
Users no longer need to search for each others’ accounts or go to a different payment app, because everything can be done easily —
- When adding a friend, a WeChat user only needs to scan the other person’s QR code.
- When buying a cup of coffee from Starbucks, user can simply ask the cashier to scan his unique payment code to check out.
- When needing to pay someone, scanning QR code allows strangers to send money.
- …
With features that answer to highly frequent needs, WeChat offers a one-stop solution instead of letting users go to other apps.
WeChat is not the only app that has QR code scanner built-in:
In fact, almost all Chinese e-commerce mobile apps use QR code to let customers log in and check out. Customers can also choose to upload a picture that contains a QR code and let the scanner extract it.
In addition, customers shopping on desktop site can use QR code in the same way.
An easy way to scan QR code builds the foundation for various use cases that we see today.
Over years, QR code has become the most popular mobile entrance, which many new businesses now rely on to grow.
For example, Mobike and OFO are China’s most popular bike-sharing services. They allow users to rent a bike on the go and leave it whenever they want (similar concept to Citi Bike in NYC). Again, QR code makes registration and payment process almost seamless — scan and go.
A unique QR code is on every bike, enabling tracking and safety measures.
Why bring a wallet when you only need your phone?
Growth
Since its introduction, the fastest growth of QR code usage is within the field of mobile payment.
The size of transactions done through WeChat and AliPay was around $2.9 trillion in 2016.
- For example, QR codes were once installed on every taxi. Riders were incentivized with instant discounts if they used QR code as payment method. It did not take very long for users to develop the habit of paying with their phones.
- Merchants (especially restaurants and cafes) also support QR code payment. Customers are encouraged with discounts to scan QR code and follow the merchant’s Official Account. This then allows merchants to send notifications/marketing content directly to customers.
There are over 2 million Official Accounts living in WeChat and still growing.
Moreover, many Official Accounts have evolved into Service Accounts. Users can interact with the merchant on any service-related requests, including direct messaging with service staff whenever they need.
Service Accounts can also provide a more connected experience, by allowing users to make reservations, order food and pay within the same interface.
In the picture above, QR code stickers are on the ground of a shopping mall. By scanning the code, customers can have access to free wifi while shopping. However, in order to actually request wifi service, customers must follow the mall’s Official Account (not surprisingly).
Users gradually rely on scanning QR code to access more and more features like these.
What’s happening next?
- Mini-Programs
With over 800 million daily users and various functionalities, WeChat launched their Mini-Programs — apps that do not need to be downloaded.
Focused on convenience and light weight, WeChat want users to spend more time inside itself when users would usually go to a different app. Because of WeChat’s huge user base, many developers are willing to build mini-programs to access that user base at very low cost.
Bike-sharing service Mobike has 40% of their riders coming from their mini-program.
With the high frequency of scanning QR code both online and in real world, QR code has naturally become a mini-program entrance. It lets users get things done fast and easily — (more importantly) all within WeChat.
- New Retail
Not a long time ago, Alibaba introduced a concept called New Retail . It proposes that future retail will become more connected and customer-driven. Packed with technology such as big data, computer vision, RFID and many more, the self-service Tao Cafe was launched as a concept store in China.
When customers walk into the cafe, they scan a QR code to log in to their Taobao account. After they pick whatever they want to buy, they can just walk out of the door and let the technology do all the work (recognizing what is taken, process payment, etc.).
Bingo Box, a self-service convenience store chain, will soon launch 5,000 locations in China. Customers use QR code during every step of the shopping experience: enter the store, shop and pay.
Amazon Go, which everyone knows about, shares the same concept.
What about QR code in the US?
According to techcrunch.com, Facebook has been testing their “Facebook Rewards” feature that gives customers discount at participating brick-and-mortar stores. I wonder if Facebook would launch “Facebook Pay” in the future?
Also, with the upcoming iOS 11, there will be a native scanner that allows iPhone users to scan QR code directly. Yes, finally.
After all, QR codes can be lovable. :)
If you made it here and had fun reading, feel free to click “♥︎”. And again, questions and comments are very much welcomed.