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Thanks to rising interest in contactless transactions, QR codes have become a popular payment option for both businesses and consumers.
QR codes — or quick response codes — are barcodes that customers can scan with their smartphones. Once scanned, they'll redirect customers to a website, app, or payment portal. Businesses can create their own custom QR codes and display them at their point of sale to accept fast, easy, and secure payments.
Ready to learn more about this contactless payment solution? Here, we'll unpack the benefits of QR code payments for customers, merchants, and marketers.
First, let's look at the biggest benefits of QR codes for businesses:
Many types of touch-free payment options require a special payment terminal, and it may not be worth investing in the equipment or redesigning your payment process just to accept a few touch-free payments.
With QR codes, on the other hand, all you need is a standard printer. Just print your QR code, and you can start to accept touch-free payments in seconds. Learn more about how to use a QR code to accept payments.
How safe are QR code payments for your customers? Rather than storing sensitive payment information, a QR code simply links the customer's payment app to your account. Their payment data is encrypted by the payment app, so customers are able to pay you without sharing personal information like account numbers.
From the make of their car to their choice of hand sanitizer, people are loyal to the brands they use. This extends to their payment choices. For some customers, this means that if you don't offer their favorite payment method, there's a chance they'll take their business elsewhere.
Almost 60% of consumers say they’d like to use a QR code to pay at a grocery store or restaurant, for example.1 That’s why it's important to offer several different payment methods at checkout.
Businesses can use QR codes to track and fuel participation in loyalty programs. Once a customer checks out using a QR code, for example, you can prompt them to sign up for your loyalty program. You can also use QR codes like virtual punch cards, identifying each time someone makes a purchase or completes an action.
This kind of integration has contributed to the rise of QR codes as a payment tool. As Juniper Research reported, global QR code payments will increase 25% from 2022 to 2025 as loyalty programs encourage repeat usage.2
The fewer steps it takes for customers to check out, the better. That's where QR codes can help. In the past, you might've made customers find your register, fumble for their card, scan it, verify their information, and finally checkout.
By using QR codes for payments, you can invite customers to seamlessly complete their transactions right from their mobile devices in just a few taps. So they can get their products or services, and you can get paid.
Since QR codes are trackable, businesses can use them to collect data about customer behaviors and transaction trends.
For example, are more customers making purchases at a certain time of day or day of the week? When customers scan a QR code to visit your website, do they make a purchase right away or start browsing? Also, what's their bounce rate? You can use QR codes to answer these questions and optimize your strategies going forward.
With QR codes, merchants can easily accept payments without the need for a physical card reader or register. They can simply create their own code using a QR code generator, potentially saving valuable time and money.
Now let's look at the benefits of QR code payments for customers:
Customers have embraced in-person digital payments like QR codes because they're able to pay for things without having to touch shared surfaces like payment terminals, pens, or change. This helps shoppers feel safer knowing the only thing they'll touch is their own device.
Also, a new generation of digitally native shoppers have contributed to a rise in contactless payment preferences. For convenience and safety, many shoppers want to complete their transactions directly from their smartphones. And QR codes help them make that happen.
More than 85% of Americans now own a smartphone.3 If you display a QR code in your store or online, customers can use that smartphone to access your landing page from anywhere at any time.
By offering QR codes to customers, you can help them check out in seconds. Instead of waiting in a line, rifling through their wallet, or gathering their cash or checks, they can simply complete their purchase in just a few taps.
Not only are QR code payments an easy option to offer, but they can also be safe, fast, and attractive to shoppers. When you're ready to get started, just download the PayPal Business app or log in to your account from the web to create your QR code and start selling.
Learn more about selling with QR codes and generating QR codes on your mobile device to accept payments.
QR codes can also be a valuable asset for marketers. Here's why:
Drive mobile clicks and conversions directly from your print and out-of-home ads. Place QR codes on your posters and flyers, for example, so customers can scan them and start buying right from their smartphone or tablet.
Remember, QR codes can be a portal to any digital destination. So try boosting customer engagement by linking your QR codes to interactive content like quizzes, games, and even location-based guides or scavenger hunts.
One of the biggest benefits of QR codes in marketing is data. After all, data is the foundation of any good marketing campaign. By tracking QR codes, you can answer questions like: Which products are selling out fastest? Which store locations drive the most sales and when? Which payment methods do customers prefer? You can then use these insights to personalize your marketing campaigns toward customer interests and behaviors.
No more swiping cards or cashing checks. With QR codes, you can offer a fast, secure, and friction-free payment experience for your customers.
Merchants can accept QR code payments easily with PayPal. Simply use the PayPal QR code generator* to set up your custom code. Then display your code for customers to scan and start selling in person.
*Merchant and customer need the PayPal app to use the QR code feature.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.
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