Quick-response (QR) codes are becoming more common in the payment processing environment. The global QR code payment market was valued at $12.54 billion in 2024 and is expected to grow to $61.73 billion by 2033. The rapid rise of QR codes underscores how important it is for businesses to take advantage of this payment method’s simplicity, speed, and security.

The surge in mobile device usage and widespread customer adoption of digital payment technologies are major drivers of QR code payments. This payment method can offer businesses many advantages, including cost-effective infrastructure, accelerated transaction processing, and efficient inventory management. Businesses can gain a distinct edge in a swiftly changing retail market by understanding and effectively implementing QR code payments.

Below, we’ll explore QR code payments and their applications, including how businesses can effectively integrate them to improve their payment experiences on every channel.

What's in this article?

• What is a QR code?
  
• How do QR codes work?
  
• Types of QR codes
  
• How are QR codes used for payments?
  
• How businesses can use QR codes
  
• How to generate QR codes for payments
  
• How Stripe Payment Links can help
  

What is a QR code?

A QR code is a type of barcode used in digital transaction spaces to facilitate the rapid, seamless exchange of information. In the context of payments, QR codes can represent transactional information in a machine-readable form. When a customer scans one with their smartphone or other device, it initiates a payment process without requiring the customer to input data manually. The encoded information can represent details such as the customer’s account credentials, the transaction amount, or other payment-specific information. This helps simplify the payment process, minimising the time and effort needed to complete a transaction—for businesses and customers.

How do QR codes work?

QR codes contain encoded data in a unique pattern of black and white squares that can be read by a QR code scanner, usually via a smartphone or tablet camera. Here’s a more detailed explanation:

• Encoding: The process begins when the information is converted into a QR code. This information could consist of payment details, URLs, text, or other data. It’s processed using a specific algorithm to create a pattern of black and white squares. Each unique pattern corresponds to different characters or sequences of data.

• Visual orientation: On closer inspection, you’ll see three prominent grid blocks at the corners alongside smaller alignment and alternating timing patterns. These markers tell a scanning camera exactly how the code is oriented, what scale it is, and what angle it’s being viewed from.

• Data and error correction: The internal sections of the grid contain the actual format information and encoded payload data. Importantly, this area integrates specialised error correction keys that act as a safety net if the code is partially obscured.

• Instant extraction: When a user turns a smartphone camera or point-of-sale scanner towards the graphic, the application maps the light and dark pixels, translates the visual matrix back into its original digital characters, and executes the target action (e.g., launching a digital checkout, opening a web page).

Typically, in the context of payments, the QR code encodes the customer’s account details and, sometimes, the payment amount. When the customer scans the QR code with their banking or digital wallet application, the app reads the encoded data and fills in the payment details automatically. The customer needs only to confirm the transaction.

Types of QR codes

QR codes can be divided into two main types: static and dynamic. Here’s more information about each type.

Each type of QR code has its advantages and is suitable for different applications. Businesses use dynamic QR codes to track user engagement and easily update information, while static QR codes can be useful in scenarios where the information will remain the same over time.

How are QR codes used for payments?

QR codes have become a popular payment method because they’re easy to use and can digitise transaction information. Here are several examples of how QR codes are used in different commerce environments for payments:

• Retail stores: Traditional brick-and-mortar retail stores can display a static QR code at the checkout counter for expedited in-person payments. When customers are ready to pay, they scan the code using a mobile payment app on their smartphones, which fills in the retailer’s payment details and prompts the customer to enter the amount they’ll pay. This simplifies the checkout process, eliminating the need for cash or physical debit or credit cards.

• Restaurants and cafés: Similar to the way retail stores use QR codes, restaurants and cafés can print a QR code on the bill or place it on each table. Customers can scan the code to view the menu, place an order, or pay for their meals directly from their phones. This reduces the need for waitstaff intervention and speeds up the ordering and payment process.

• Ecommerce: Online businesses can include QR codes on the checkout pages of their websites or in invoices sent via email. Customers can scan the QR code to initiate payment without having to manually enter payment details. This simplifies the payment process and enhances security by minimizing data entry errors.

• Peer-to-peer payments: Individuals can generate a QR code through their banking or digital wallet apps that others can scan to send them money. This is particularly useful in situations such as splitting a bill among friends and paying a local service provider.

• Subscription services: Companies that offer subscription-based services can use QR codes to facilitate recurring payments. For example, a gym could include a QR code on a member’s monthly invoice. The member would simply scan the code to process the payment, instead of going through the manual process each time.

• Event ticketing: For events such as concerts and sporting games, organisers can embed a QR code on the ticket. This can serve as both proof of purchase and a method of entry to the event. When the customer purchases the ticket online, the business can send them a QR code via email or text. The ticketholder can show that on their phone at the venue.

• Donation drives: Non-profit organisations can use QR codes to facilitate donations. By placing QR codes on their websites, social media pages, or at their physical locations, non-profits can make it easier for donors to contribute by allowing donors to scan the code and pay with their preferred payment methods.

In all these scenarios, the convenience, speed, and security of QR code payments can enhance the overall customer experience and operational efficiency. And with the increasing popularity of smartphones and digital wallets, QR code payments are accessible to a growing number of customers and businesses.

How businesses can use QR codes

Businesses can use QR codes in various ways to increase customer engagement, simplify transactions, and reduce strain on internal operations. Here are some examples:

• Contactless payments: Companies can use QR codes to enable contactless payments, enhancing the customer experience by offering a quicker, easier, and safer way to pay. For example, a coffee shop could display a QR code at the counter. Customers could scan it with their mobile banking app or digital wallet, then input the amount they need to pay and confirm the transaction. Similarly, an ecommerce website could include a QR code at the checkout page for customers to scan and complete their payment without entering credit card details.

• Product information: QR codes can provide a direct link to comprehensive product details beyond what’s typically listed on the packaging. A furniture retailer, for instance, might use QR codes on price tags in-store. Customers could scan the code to access assembly instructions, read reviews, view the product in a 3D virtual room, or check the availability of different colours and styles.

• Promotions and discounts: Businesses can use QR codes to offer exclusive promotions or discounts. A clothing retailer, for example, could place a QR code in its window display, which would allow passersby to scan the code and access a limited-time offer or exclusive discount code. This provides a strong incentive for immediate purchases.

• Customer surveys and feedback: QR codes can streamline the process of collecting customer feedback. For instance, a restaurant could print a QR code on its receipts, which customers could scan to quickly access a form on their smartphones and provide immediate feedback about their dining experiences. The restaurant can use this feedback to identify areas for improvement.

• Digital menus: Instead of using traditional paper menus, restaurants can use QR codes for digital menus. A restaurant could place a QR code on each table, which customers could scan to view the menu on their smartphones. The QR code would allow the restaurant to make real-time updates to the menu, as well as include detailed ingredient lists and even customer reviews of each dish.

• Event registration: Companies that host events can simplify the registration or ticketing process using QR codes. An art gallery that’s hosting a special exhibit, for instance, could use a QR code on posters that advertise the event. People interested in attending could scan the code to register for the event or receive their digital tickets directly to their phones.

• Social media engagement: Businesses can use QR codes to grow their social media followings and increase customer engagement. A local boutique could include a QR code in its bags or receipts that links to its Instagram profile, which customers could scan to follow the boutique on Instagram and stay informed about new arrivals, sales, and events.

• Inventory tracking: Companies can use QR codes internally, to manage inventory. A manufacturing company, for example, could use QR codes on individual parts or products. Staff could scan the codes at each step of the manufacturing or shipping process, enabling real-time tracking and inventory updates.

These examples showcase how QR codes can serve multiple purposes across different aspects of a business, from improving customer engagement and transaction efficiency to simplifying internal operations. Their versatility and ease of use make them a powerful tool in today’s digital business environment.

How to generate QR codes for payments

Generating QR codes for payments is a straightforward process, but the exact steps can vary based on the payments platform or service you use. Below are the basic steps for generating a payment QR code.

Choose a payments service provider (PSP)

Choose a PSP that supports QR code payments. This choice might also depend on your region and overall business needs. Your PSP could be a banking institution, a digital wallet service like Apple Pay, or a dedicated payments platform like Stripe.

Create a merchant account

You need to have a merchant account with the chosen PSP. This account will be linked to the QR code and receive the payments. If you already have an account, you can use that; if not, you’ll need to create one. Some providers, including Stripe, don’t require businesses to open a merchant account since they offer that functionality.

Access the QR code generation feature

Log in to your account on the PSP’s platform and look for the QR code generation feature. Typically, you can find this in the platform’s payment or tools section.

Enter payment details

The platform will prompt you to enter payment details. This could include your merchant ID, the specific account to which payments should be directed, and potentially a set transaction amount if the QR code is for a specific product or service.

Generate the QR code

Once you’ve entered the necessary details, click on the “generate” button. The platform will create a unique QR code linked to the payment information you entered.

Test the QR code

Before you deploy the QR code, test it by scanning the code and confirming that it triggers the correct payment process and that payments are directed to the correct account.

Deploy the QR code

Once the QR code is tested, it can be displayed at your point of sale, on your website, or on receipts or invoices. Or it can be used in any other manner that aligns with your payment strategy.

It’s important to keep security considerations in mind when you use QR codes for payments. Always use trusted, secure payments platforms and ensure your QR codes are displayed or distributed in a manner that minimises the risk of tampering or unauthorised alterations.

How Stripe Payment Links can help

Stripe Payment Links is a no-code solution that allows you to quickly create and share secure payment pages online.

Payment Links can help you:

• Get paid faster: Share custom payment links with customers and accept one-time or recurring payments instantly, without invoicing or complex integrations.

• Improve conversion: Boost payment conversion rates with a mobile-optimised design and streamlined checkout experience.

• Save time: Easily create, customise and share payment pages through the Stripe Dashboard – with minimal coding.

• Expand globally: Accept payments from customers worldwide, with Adaptive Pricing localising prices for 135+ currencies and offering local payment methods that are ready to use.

• Access other Stripe products: Integrate Payment Links with other Stripe products – such as Stripe Billing, Stripe Radar and Stripe Tax – to add more payment capabilities.

• Maintain control: Customise the look and feel of your payment pages to match your brand, and track all your payment activities in one place.

Learn more about how Payment Links makes it easy to accept online payments, or get started today.