“Online payment will continue to play an ever-growing and significant role in the development of e-commerce as well as stimulation of consumer demand.”
There were those years when people used to give hard cash from a few thousand to many crores, but now what we see on a casual street is that a rickshaw traveler also makes an online payment for Rs.10 only! This is the best example to show where we are heading with the induction and evolution of technology and placing every product and service on a digital platform.
Online payments have become a piece of cake for every consumer as it is not just easy but accessible for buyers and sellers. But if we jump onto QR CODE PAYMENTS and speak out its benefits then it can be explained by just one sentence:-
“QR code payments are earning a business profit of $1.6 trillion within a span of 2 years (2020-2021).”
So today, Rannkly will discuss this dynamic matter with its readers and explain every segment of how QR code payments are evolving day by day and revolutionizing the payment systems. Before delving deep into the functioning of QR codes and integrated payment systems, we need to understand their pioneers and how they replaced them within a very small period.
WHY AND HOW HAVE QR CODE PAYMENTS EVOLVED?
There was the time of mid-twenty centuries, in 1970 when the BARCODES were introduced on a brand called Wrigley's Spearmint for the very first time. It came up with a big solution to the issue of collecting and storing the data of the product in an encrypted format. It was a 1-dimensional structure with dark vertical bars to store the information up to 1556 bytes. This system was adopted to manage the accounting data conveniently and warehouse details in a simpler form that can be tracked down without any complexity later.
But due to its limited storage capacity and chances of wearing out easily, people started searching for another option that can solve both these problems with some extra irreplaceable characteristics. This led to the birth of a QR code which is an encrypted 2-D code that can store 360 times more information than a Bar code. The reason for its huge storage capacity is its diverse coding structure that contains 7089 digits, 42976 letters, and 1817 hieroglyphs.
Since they are non-human readable characters, they are only read by special software and ensure their security with no interference from human beings.
WHAT IS QR CODE PAYMENT SYSTEM?
A quick response code, generally called a QR code can be understood as an encrypted code with a limitless storage capacity of the information. It is formed of black square grids with white background. These structures can hold any information and will be kept completely confidential because no individual can decode its structure or extract it for any malicious activity.
This is a practically intelligent solution introduced in technology that impacts two segments of life of an individual:-Reduces the cost- It removes the traveling cost, queuing up of lines, intermediary costs, etc. Make tasks simple and accessible- One can make the payments, check the menus, offers, other special features, etc. with just a scan!
QR code was first introduced in a Japanese auto parts company in 1994. This tool has replaced the bar code scanning system because of its usability in every sector and large storing capacity. But a marking benefit of a QR code is its usage in payment systems. Merchants and business owners are now shifting towards cashless payments because it ensures more safety and accessibility for the common man also who has minimal information about technological products.
Its encrypted form confirms a safe transfer of data and notifies the process at every step. QR code scanning activity is very simple and possible anywhere. You may have seen stores and even big showrooms where they put QR codes as a sticker for payment purposes. A user just needs a camera and a scanning application to scan the code. It simplifies the chain of activities for both the merchant and the customer.
WHY QR CODE IS A BETTER OPTION FOR PAYMENTS?
Moving on from hard checks, credit and debit cards, and even NFCs, why are people nowadays choosing the QR code system of payments? How has it built such dependability in every commercial zone? We will get the answer to these questions by knowing some of the important uses of QR codes:-
While doing payments by scanning the QR code, removes the need for any intermediaries who get the commission for making any payment. Scanning is a very simple task and can be done by anyone who uses a smartphone. The bank accounts of the buyer and seller are directly linked with the code without hindering any personal information. This is why both parties can directly communicate with authentic proofs like payment or non-payment messages.
2.CONNECTS TECHNOLOGY AND FINANCIAL SECTORS
The code is developed by technologically advanced individuals but is incorporated in almost every other sector from restaurants, hospitals, schools, local shops, and online businesses to governmental sectors. It handles the financial prospects of organizations like accounts, billing, displaying service charts, etc. So, it maintains a bridge in both technology and finances to enhance their functionality daily. And by a proper amalgamation of both, the user is benefitted the most.
The biggest lesson we learned from the lockdown and Covid situation is that we can develop technology that can maximize contactless activities like food deliveries, education system, job conditions, and payments also. It not only makes the payments simpler for the users but also protects them from spreading harmful diseases.
4.OPTION FOR BOTH ONLINE AND OFFLINE FUNCTIONING
Many of the services were bifurcated into online and offline modes due to their compatibility more in one sector than the other. But this difference had come to an end with the QR code system of payments. A code is a particular structure that can be printed anywhere and that can be a simple standee or an online website also.
IS QR CODE LIMITED TO ONLINE PAYMENTS ONLY?
Let us first state an important declaration from RBI in 2020:-
“Payment system operators that use proprietary QR codes shall shift to one or more interoperable QR codes, the process of migration shall be completed by March 31, 2022.”
Now you may have a question: what is an Interoperable QR code? An interoperable QR code is a hassle-free method to make payments where the user doesn't need to install multiple scanning apps. He/she can make payments to any app by scanning a single code at a single platform. Now in India, the government has issued two interoperable QR codes- UPI and BHARAT PE QR. These codes can be scanned from multiple platforms without installing multiple mediums for scanning them.
Rannkly analyzed the structure of the QR code and tried to bring more other functionalities to boost its usability. Hence, it introduces a UNIVERSAL QR CODE to perform multiple tasks in a single scan. Let’s see its functions one by one:-
- DIGITAL PAYMENTS, OF COURSE!
Rannkly introduced a simple Interoperable QR code so that it can accept payments from all the UPIs like PhonePe, Google Pay, Paytm, and many more. The user just needs to scan the code and all the payment receiver’s details will come in front. Then the user can make a safe payment by entering his PIN and getting instant notification of his payment status.
- MENUS OR SERVICE CARDS
Through Rannkly’s QR code, the individual will get the benefit to view the menu or service card to go through all the services that the organization provides. This not only helps in contactless services but also a better presentation of all the goods and items.
- CUSTOMER DATABASE
Once the customer scans the QR code in any service-based organization like the hotel, restaurant, amusement park, etc.; the organization can track the data like name, contact no., and email Id. This will automatically be stored in the system and organizations can use this information to generate reviews or contact their customers to give them better deals and offers.
- OFFERS AND COUPONS
The organization can display special offers and coupons for their customers who scan the code for cashless payments. This will benefit both parties: Customers who will scan the code will get special discounts and rewards for scanning and Organisation can fetch the customer’s data to contact them in the future.
- RATINGS AND REVIEWS + FEEDBACK
Once the customer scans the QR code, the organization can ask them for genuine feedback by displaying a form on the first page. They can also ask to give ratings and reviews on review platforms. This creates a positive impact on the customers when their tasks become simpler than before and builds a good brand image by getting reviews and ratings. Later, the organization can also ask to follow them on different social media tool channels to stay up-to-date about the latest events and occasions.
Do you want to try this Universal QR Code to leverage your brand? Contact the team through rannkly.com and go to the blog section for more information.