In the early 2010s, China adopted QR codes to send and receive payments. By 2017, 65% of the population were using them. In the West, however, QR codes have mostly been limited to large, random billboards on motorways. Now, in 2020, we are slowly seeing a shift towards QR code payments. Companies such as Pomelo Pay and Paypal allow businesses to accept payments without any physical contact necessary through the use of QR codes, making it safer and more secure for both parties involved.
QR stands for Quick Response, and is presented as a barcode-looking image that contains information on both the merchant and payment provider. This type of payment functions like a normal Point of Sale (POS) terminal: a customer uses their phone to scan the QR code and completes the payment on the spot. Every modern smartphone has a camera that recognises QR codes; once the camera detects the QR code, a push notification comes up taking them to a screen where they input their payment details and complete the purchase.
The first benefit of QR technology is that a QR code can be printed and placed anywhere: outside a shop, on a website or in an email. This means that customers don’t need to be anywhere near a merchant and can complete payments from a safe distance.
The second benefit is that QR codes eliminate any need for cards or payment terminals – the only equipment necessary is a mobile device such as a smartphone or tablet. This greatly improves overall customer experience: customers just need to scan a code, insert their card details and complete the payment.
The final benefit is that QR codes are actually more secure than card payments: all information is encrypted and customers don’t even need to fill in details on a website. In addition, every transaction through Pomelo Pay is tokenised, which means customer details aren’t stored with the merchant nor Pomelo Pay.
QR codes are currently gaining popularity due to social distancing: by using QR codes to transfer payments, merchants and customers no longer need to handle cash, whether online or offline. A local coffee shop can simply print out a QR code, set it down on a table and allow customers to scan and pay from a safe distance. This type of payment means both customers and merchants can work in a safe, secure and convenient environment.
At Pomelo Pay, we’ve been using QR technology from the very beginning. We offer merchants a method of accepting payments through their mobile phone by generating a QR code. This turns their mobile device into a convenient, portable and affordable POS.
Pomelo Pay works differently to other payment providers such as Square and Paypal – these companies say they accept mobile payments, however they still require merchants to buy mobile card readers. This means merchants need to buy hardware before accepting any kind of mobile transactions. With Pomelo Pay, all merchants need is a mobile phone and an account, with fees only charged at 1.49% per transaction. Since all the information is stored on the Pomelo Pay app, employees can also install the app and log in from any device.
When buying a card reader or using a new software, many companies will require merchants to buy hardware, sign contracts and pay minimum deposits. With Pomelo Pay, there is no complex initial set up. If a merchant has a mobile device, they can automatically turn that into a POS by downloading the Pomelo Pay app and signing up.
Pomelo Pay accepts all kinds of payments. This means businesses of all sizes can accept Visa, Mastercard, Google Pay and Apple Pay at favourable rates. This opens up opportunities to reach a more diverse selection of customers, which in turn translates to higher business revenue.
An integrated QR code means customers can complete purchases safely and securely: all information is encrypted and every transaction is tokenised, so customers can rest assured their details remain secure.
With Pomelo Shop, merchants can now create their own online shop.
This allows merchants to sell across the border, as well as provide a seamless shopping experience to customers in-store. For example, a coffee shop creates a Pomelo Shop and lists their products online: lattes, cappuccinos and americanos. The customer walks into the shop, scans the shop’s QR code, chooses and pays for a latte from the online store and collects it in-store. Not only does the customer no longer need to wait in a queue, but they don’t need to go anywhere near a POS and can complete their order from a safe distance.
Merchants can promote their online store by generating a QR code and posting it in their shop, on their website or on social media. This allows businesses to offer consistent branding and messaging across all channels, helping customers easily navigate between products.
At Pomelo Pay, we believe that QR codes are the future: they are more secure, safer and much more efficient. By accepting payments with QR codes, merchants are able to spend more time focusing on providing the best shopping experience for their customers. Over time, this translates to consistent branding, growing revenues and happy customers.