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Using QR Codes For Contactless Payment Solutions

Using QR Codes For Contactless Payment Solutions

Contactless payments became a necessity during the Covid19 pandemic in recent past. People preferred to scan QR codes to make payments than handing over their cash, debit or credit cards to staffs and not just for the fear of catching the coronavirus. It made sense back then and it makes sense now as well.

QR Codes have been around for some 30 years but only after smartphones became popular, and later when Apple Inc. integrated QR scanning features in its smartphone camera itself (2017), QR became so effective, reaching a wider set of users.

The pandemic did spark a global interest in contactless payment solutions and it forced physical stores and cash businesses to adopt digital payment solutions across the world but in India, there is more to this.

In 2016 the Indian Govt. decided to demonetize the currency notes of INR 1000 and INR 500 which lead to countrywide cash crunch. With the rise in 4G internet technology in the country, new digital payment infrastructure came into existence and it included UPI (Unified Payment Interface), QR-UPI, and QR-Wallet payments.

QR Code Payments

QR Code (short for Quick Response Code) is a two dimensional barcode image that is highly secure and efficient with high scan rate. Various digital payment solutions like Google Pay, PayTM, PhonePe, PayPal, BHIM, SBI Pay etc. are using the UPI interface to connect bank accounts and make digital transactions feasible. Users can scan a QR Code at any retail store or restaurant and the billed amount would be deducted from the user’s bank account after entering the UPI PIN.

QR Code-UPI enabled contactless, digital payments have been a reality in India post 2016 demonetization and ever since it is breaking new grounds. Once former Indian Finance Minister Shri P. Chidambaram laughed at the idea of contactless payments at small tea stalls, local bazaars etc., during a discussion on digital payment methods inside the Indian Parliament.

In March 2023, UPI clocked the highest no. of transaction at 8.7B and a significant portion of this is completed via QR codes.

It’s estimated that the QR Code based transactions in India will potentially reach 125B USD by 2026.

QR Codes payments for enhanced customer experience

No one would have thought that QR codes will become this popular, not even Masahiro Hara, the Japanese engineer at Denso Wave who invented it way back in 1994.

From retail to supply chain management, manufacturing, healthcare, asset and tool tracking, and most importantly advertising and marketing, QR codes are everywhere. Customer expectation post-pandemic has also changed and people want accurate information and timely delivery of their consignments, easy payment methods, fast return and refund. Digital menus and digital QR payment have really caught on.

When users scan a QR code and complete a digital payment transaction, they instantly get payment completion evidence in the form of a notification or a card confirming the same. This eliminates the need for repeat payments and results in improved customer experience.

Another important characteristic of QR code payment is the security features. The UPI or wallet payments are protected by encryption at the payment platform itself. It also requires two factor authentication for any payment to be completed which makes for safe customer experience.

Other QR Code Applications

Apart from contactless payments, QR Codes have been extremely helpful with enhancing in-store customer experience to a great extent. Various retail stores are using QR codes on articles as well as customized promotions where QR codes are encoded with URL to a landing page featuring various promotional offers.  QR codes are also used to create made to order digital menus/specials in restaurants and eateries that can be modified with dynamic QR codes.


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Disclaimer: The information presented here is for general information purposes only and true to best of our understanding. Users are requested to use any information as per their own understanding and knowledge. Before using any of the information, please refer to our Privacy Policy and Terms and Conditions.


  • Created on Apr 12, 2023

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