Contactless Payment 101: How Do QR Code Payments Work?

QR codes have come a long way since they first appeared in Japan in 1994. 

You may remember seeing them on billboards or postcards. And then, in all likelihood, you forgot about them — until recently.

With the rise of contactless payment transactions, QR codes are making a comeback.

If you’re a diehard Venmo user, you’ve likely tried their QR code feature when paying someone new for the first time.

If you’ve dined outdoors during the pandemic, you’ve seen scannable QR codes on tables as an alternative to menus. 

How Do I Scan a QR Code?

First: you don’t need a QR code reader app. (That’s so 1994.)

These days, you scan a QR code using only the camera of your phone.

Just open your camera, then hold your phone over the QR code in question. Your phone will automatically offer to take you to a URL with the information you need, whether that’s a menu, website, or checkout page.

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How Do I Pay with QR Code?

Certain apps have started offering a totally hands-free way to check out courtesy of QR code payment technology. The process is simple: 

• A service provider or business drafts up a total of whatever product or service you’re buying in an app like Venmo
• The app they’re using for transactions generates a unique QR code 
• You (the customer) then open your camera app
• You scan the unique QR code
• Presto! Like magic, you’re directed to a checkout screen where you can complete your purchase completely on your own

The perks of paying by QR code are great, to say the least.

Paying with QR code means no buggy hardware like card readers.

(Customers can self-select their tip from their phone before completing the transaction). 

How Can I Offer QR Code Payments at My Business?

So glad you asked.