QR Code Payments: An Innovative Digital Payment Option

Cash payments are a thing of the past now. Financial transactions are primarily done through digital methods based on various technologies. One such digital payment technology is the QR code payments system. Quick Response (QR) code is a two-dimensional matric barcode which stores data using numeric, alphanumeric, binary, or kanji methods of encoding. Out of all the digital payment methods available today, QR code payment system offers one of the highest data storing capacities for time and product tracking and document management.

What gives QR code payments system an edge over other payment methods?

The popularity of QR code payment technology can be seen from the fact that several industries and sectors have adopted this technology. For instance, several e-booking applications, be it for trains, movies, or concerts, use QR code payment systems for online transactions. Similarly, restaurants, fuel stations, and other small and medium-scale enterprises use QR code payments for digital payments. This high adoption rate is due to the various advantages offered by this technology. Firstly, a QR code is extremely simple to use; all that the customer needs to do is scan the code, enter the amount, and pay. Moreover, a QR code is fully secure as the data shared through the code is completely encrypted. Another important factor behind the technology’s rising popularity is that it allows for fast payments, unlike many other net-banking options. All these factors make QR code payment technology truly user-friendly.

Dynamics of the QR code payments industry

The digital payments industry in general, and the QR code payments market in particular, have witnessed massive growth in the past few years owing to a number of factors. The biggest reason behind the growth of the global QR code payments market is the widespread adoption of QR code payment services in developing countries of the world. The rising pace of urbanization and an overall growth in the proportion of tech-savvy youth is predicted to help the market flourish in the coming period.  

The growing usage of QR code payment technology by various end-use industries has also been a major factor in expanding the scope of the market. When studied based on end users, the retail & e-commerce segment is predicted to gather an absolute revenue of $15,271.83 million from 2022 to 2032. On the other hand, the e-ticket booking and the other segments are predicted to collectively hold a revenue of $9,962.84 million during the same period. Regional analysis shows that the India QR code payments market is projected to have a tremendous CAGR of 26.0% in the forecast period.

In January 2023, Fiserv, a leading fintech company based in the US, announced the acquisition of Yacare, a digital wallet company. The acquisition by Fiserv was aimed at expanding its operations across the globe. To achieve this very objective, Star Health and Allied Insurance, in September 2023, announced the launch of UPI QR code-based payments. Such acquisitions and product launches have also augmented the growth rate of the market significantly. The QR code payments market is on the cusp of a massive boom, especially due to the rising adoption of this technology by various end-use industries in developing countries, especially India. A growing proportion of tech-savvy youth would further strengthen the position of the industry.

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