Clane Digest: Understanding QR Code Payments
QR Codes: A brief history
A Quick Response code, popularly known as QR code, is a type of matrix code invented in 1994 to serve the Japanese automotive industry. Since its inception, QR codes have grown popular and have multiple use cases such as digital marketing, information sharing, payments, and placing orders.
Why is the QR code technology beneficial?
QR codes have some advantages that bring value to multiple sectors and industries. Firstly, they can store a large volume of data. Then, they come with onscreen and paper functionalities. Mobile users can scan a QR code by pointing their device at a screen or paper piece. Furthermore, a QR code can be read by a mobile device even if a part of the code is damaged. Also, QR codes promote a safer way to pass, read, and store sensitive data and information. Lastly, they are easy to use and understand by the average mobile user.
QR code payments
In 2011, Alipay pioneered the QR code payment method. This method allowed customers to make real-time in-store payments in partnering Alipay stores by scanning a unique QR code in their Alipay Wallet.
Due to how convenient and easy it was to pay via QR code, Alipay acquired 200,000 stores and enabled them to receive QR code payments. By 2016, Alipay boasted 450 million real-time users, with 71% using their mobile devices to make transactions. [Source]
Now, QR code payments allow merchants and financial institutions to stay ahead of the innovation game. Business owners are offering consumers different ways to pay for goods and services online. Financial institutions and enterprises are including the QR code feature in their banking and payment applications. Restaurateurs and store managers are placing QR code signs and stands on available surfaces.
As the global world adjusts to the new health and wellness standards, smartphone users will find themselves compelled to try payment methods that promote safety, convenience, and ease.
Clane is on a mission to transform mobile banking into mobile payments. Our suite of products is designed to make paying and getting paid easy, safe, and seamless.
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