Why you should be all over QR Codes
Why you should be all over QR CodesQR Codes made their debut early in 2010, and were a bit of a disaster to be fair. I remember seeing one decent merchant offer in a London tube station. I tried to scan it without anyone looking only to realise that there was no internet available down there, so I sheepishly scoffed at the failure of it all and thought that this will never take off... but how wrong I was.
Simply put QR codes debuted too early as their time was yet to come. Now you see QR codes everywhere. Almost every counter in shops have QR codes for people to scan and now they make a lot more sense and are becoming mainstream.
Therein lies the ‘early-movers opportunity’ for merchants. By having more options to pay and having less obstructions to a sale will make the passage from ‘browse to buy’ more seamless and will make more profit for your business.
What Is a QR Code?
QR codes, short for "quick response" codes, are square-shaped black-and-white symbols that people can scan using a smartphone to learn more about a product.
The QR code offers, as the name suggests, a quick response mechanism which saves users the effort of typing in a URL or SMS.
For the merchant the biggest advantage is data, these encrypted squares can hold links, coupons, event details, and other information that users might want to take with them for referring to later.
QR codes appeal to mobile users’ curiosity on seeing the square blocks. What is it? There is an urge to scan it, just to find out where it leads. Used well, and in conjunction with a mobile optimised landing page, it can grab consumers at the exact point where they have shown interest in an ad or video, and get them signed up for an email, tempt them into making a purchase etc. We all know sticky, interested customers offer the most net profit.
Merchant-presented QR codes have opened doors for many small merchants. The ability to create a code that they can simply display at the point of sale for consumers to scan eliminates the need to purchase expensive POS (Point of Sale) infrastructure to get started accepting electronic payments. This is because the QR code doesn’t have to cost anything like POS systems where merchants have to invest in costly hardware to scan credit cards. Most good online payment applications can create codes for product offers nearly instantaneously.
While it’s possible for a merchant with an app on a smartphone to generate a QR code for an individual transaction, at its simplest, the method allows the merchant to display a single static code at the point of sale. A transaction is initiated by a consumer who uses a mobile app to scan the merchant’s QR code and enter the transaction amount for their purchase. For busy office workers QR codes speed up the lunchtime queues, they now order online beforehand and just scan and pick up their lunch order without having to wait in queues or wait for cash change.
While the simple infrastructure is a key reason for the appeal of these “push” transactions for boosting electronic payments acceptance in emerging markets, it’s not the only one. Both the shopper and the merchant receive real-time notification of the transaction’s success. The funds can be delivered to the merchant’s account in real or near-real time. Funds availability depends on the acquiring financial institution’s policies. This rapid acknowledgement and availability of funds is key for many small merchants who like the immediate accessibility they are used to with cash. Another key benefit is what experts in point of sale refer to as; “finality of payment.”
Because the consumer initiates the transaction, and they and the merchant receive the immediate notification that the payment was completed, the mobile networks say that the risk of dispute over the charge is nearly eliminated. As a result, this limits allowable chargebacks to such scenarios as goods not received.
Cash is now the thorn in the Government’s side
If you are in government you will be looking closely at countries like China and India who can see the digital revolution and the inevitable move to a cashless society. It costs government’s to make notes. In fact: $1 and $2 bills cost 4.9 cents per note to make, while $5 cost 10.9 cents, $10 cost 10.3 cents, both $20 and $50 bills cost 10.5 cents, and $100 bills cost 12.3 cents. Basically the more it is worth, the more it costs to produce. So cashless transactions seem very attractive indeed. With USD3.7 trillion in notes/coins in circulation, the cost of simply producing money is in the hundreds of billions.
Adopt a Mobile Payment Option
So the takeaway is if you want to remain profitable and move with the times, you need to be adopting a mobile payment application option for your business whether offline or online. WinstantPay is a mobile payments application spearheading the revolution and you can now have:
1.) Instant exchange between digital currencies, including crypto and fiat currencies
2.) Instant global and local payments facilitated by various means, including QR codes, NFC and messaging
3.) Merchant solutions for accelerating sales, paying suppliers, receiving payments
You can get your free wallet right here and ‘open up your store doors’ to many new customers online and offline today.
WinstantPay is a global payment network providing merchants and individuals a reasonably priced global final payment in an instant, in any currency, anywhere, anytime, with integrated anti-money laundering (AML) compliance that reduces time, costs, risks associated with payments. Serving financial institutions of all sizes for the last 18 years with financial services, software development, and business support, WinstantPay is also a founding member of WorldKYC-AML. For more information on how WinstantPay can deliver cutting edge business, visit our website and follow us on Linkedin, Medium, Twitter, Facebook, Medium, and Github.