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QR codes are not new really. In fact, the first QR code was generated in 1994 in Japan and was used to track parts and vehicles during the manufacturing process. While it did find other uses, QR codes were mostly considered a passing fad or something that enterprises needed internally to keep track of their products. But things changed in 2011, when QR codes were first used for mobile payments. The mobile wallet app for Bitcoin, a cryptocurrency, got a feature where users could send or receive bitcoins with the help of QR codes. In the same year, Alipay introduced a mobile payment system where offline stores could scan the QR codes of a customer in their Alipay wallet.

Also Read: How Shoppers Browse and Buy Products Online & Offline

Since then, QR codes have gone from strength to strength and emerged as the primary method of payment for countless people and businesses around the world. It’s easy, it’s secure, doesn’t take too much time, and payments can be done through smartphones as well. There is no need for a QR code scanner or any other device.

How Does QR Code Payment Work?

To understand how payments happen through QR codes, you need to first understand these codes.

So, what is a QR code? Short for Quick Response, QR codes store digital data in a physical representation, much like barcodes. One of the biggest differences between barcodes and QR codes though is their structure. While barcodes are made up of vertical black and white bars of different widths, QR codes contain a unique pattern of light and dark spots within a limited amount of space.

These spots can contain a larger volume of data than barcodes. They can store anything from payment information to store URLs, location of the store, offers, and more. In QR code payments, whether you are a business owner, merchant, or freelancer, you can generate a unique code, which the customer can scan with their camera or a payment app. The code will contain information about the payment or the business and allow the user to pay any amount freely.

Usually, these QR codes are integrated by a payment gateway which transfers any money generated through these QR transactions directly to your bank account. A robust payment gateway solution will take care of everything from setting up the codes to receiving payment from customers.

Different Types of QR Payments

Static

As the name suggests, static QR codes stay the same and don’t change frequently. They store specific data and can be reused again and again. Static QR codes are ideal if you are a retail store owner, street vendor, or shopkeeper. Once you display the codes on the counter, any customer can scan it, enter the required amount that needs to be paid, and go ahead with the transfer.

Dynamic

Dynamic QR codes change continuously and can store different information each time. In a dynamic QR code, payment details can be encoded for every unique payment, making it impossible to print out the code and place it on the store counter. If you run a petrol pump, food court, restaurant, or other such places, you can use dynamic QR codes for mobile payments. You need to input the billing amount for every customer, and a new code will be generated every time, which the customer can scan to pay.

Also Read: How to Simplify Invoicing and Billing

Customer-Generated

In the customer-generated method, it’s the payer who generates the code for payment. You, the seller, will need to scan this code, enter the required amount that the customer needs to pay, and then the payment request will be generated. The customer can accept this request, after checking the amount of course, and the selected amount will be deducted from their account automatically. In this method, the payment is dependent on whether the customer accepts the payment request sent by you.

Merchant Generated

This is a combination of dynamic and static QR codes. You, the merchant, can generate dynamic codes for each transaction or can have static codes for a specific product or counter. This way, you can speed up the billing by segregating customers as per their products.

Where are QR Payments Being Used?

QR codes as a mode of payment aren’t that old but have taken the world by storm in just a few years since their inception. They provide a lot of ease and convenience to both customers and sellers. Furthermore, the recent COVID-19 pandemic and the need to limit physical contact has boosted the adoption of QR codes in the mainstream.

Research by Statista revealed that nearly 28% of customers in the US and UK markets agree that QR code payments have seen a rise since 2020. Another research has stated that payments through mobile will reach USD 1.3 trillion by 2022 and QR payments have a big role to play in that. QR codes are no longer a complicated technology that only large enterprises can implement. While global companies like MasterCard and Visa are supporting merchants like you worldwide to start accepting payments through QR codes, local companies are providing support in their respective countries as well.

Now, whether you are a roadside food vendor or a multi-floor shopping centre, you can enable QR codes and mobile payment systems so that customers can pay without any difficulty. In developing countries like India and China, mobile payments have become the preferred way to pay, with nearly half the population scanning at least one QR code a week in China for payment purposes. Just from QR code payments, China made more than $1,900 billion in 2020.

Benefits of QR Code Payment

• Easy to Implement

All you need is a smartphone to generate a unique QR code and start using it to receive payments. It doesn’t require any extra devices or deep technical knowledge, and a user can easily generate codes for commercial or personal use.

• More Payment Methods

In 2022, cash is not the only way a person can pay for something. Mobile payments have become normal now, and a QR code gives you the ability to start accepting payments in methods other than cash as well. It also means that there will be an increase in customer flow inside the shop.

• Reach Out to a Wider Audience

QR codes also help you reach a wider audience. They can be embedded in different locations across the store so that the customer can pay for something quickly and head out. They can be sent digitally to the customer or presented on the website as well so that they can pay for something while sitting at home. QR codes can be embedded in any mobile device as well so that you or your colleagues can accept payment from anyone, anywhere.

• Faster Transactions

If the internet connectivity is fine and the account is completely set up, it takes just a couple of seconds for a customer to scan the code, input the amount, pay, and show you the confirmation.

• Secure

As a merchant, rest assured that the code can store only the data that you decide. Hence, these codes protect you against fraudulent activities, false payment confirmation from customers, and phishing attacks as well.

Where customers are concerned, QR code payments are highly secure and transactions happen over an encrypted network so that no one can store or steal their personal information. The only activity they need to do is scan the code and there’ll be no attempt of theft or unauthorized access to their account.

• Enhanced Engagement

While cash discounts might be rare, promotional campaigns, eCommerce companies, nationwide festivals, partnerships between companies, and other such offers can be commonly found if a customer chooses to pay digitally. Not only does this bring more customers and revenue to a company, but it also enhances customer engagement. Everyone loves to score some discounts and often tends to spend more in the hopes of getting a bigger discount.

Also Read: Finding the Best Payment Gateway for Your eCommerce Business Made Easy

The Future of Mobile Payments

If recent trends are to be believed, mobile payments based on QR codes are only going to increase. Digital banking has evolved a lot, with almost every person owning a smartphone these days, and integrating QR codes in stores has become a lot easier. The icing on the cake has been the acceptance of governments and business giants in moving towards a more digital economy. So, if you are a merchant and looking to implement a mobile payment system, PayTabs can help you with generating and setting up your own QR codes. You can then accept payments from a customer in a matter of seconds, even if they aren’t in your store physically.

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There was a time when cash, cheques, or cards were the most preferred way of doing transactions. Even with the introduction of innovative payment gateways, businesses weren’t willing to part ways with traditional methods of payments. However, things have changed in the recent years, more so because of the COVID-19 pandemic. Now, both people and businesses are choosing to use contactless payment solutions. The convenience offered by such payment solutions and the fact that they don’t require any contact between the parties has made them highly popular. To know more about contactless payment meaning and the different options you can choose from as a business, read on.

What is the Meaning of Contactless Payment?

Contactless payment methods do not require any contact between the payer and payee. The two technologies that make contactless payment possible are known as radio frequency identification (RFID) and near-field communication (NFC). A person just needs to be close to a point-of-sale (POS) terminal with the contactless payment feature to make the payment.

Types of Contactless Payment Solutions

There are several different types of contactless digital payment solutions that you can use as a business owner. Some of the most popular ones are:

Contactless Cards

Contactless cards are one of the most popular types of contactless payment methods being used these days. Contactless cards look almost like regular credit and debit cards. The only difference is that they contain an antenna that facilitates contactless payment. These cards use RFID and NFC technology to make the transaction possible.

Also Read: 4 Ways to Prevent Credit Card Fraud at Your Business

Also known as tap-to-pay cards, contactless cards sure revolutionised payment methods. They are a secure, easy, and fast way of making payments. You can either hover the card over the card terminal or tap it once to use it. Often, the cards also include a magnetic strip that allows for payment by swiping. This can be done in case you don’t have a contactless POS available.

For your business to use contactless cards for payments, all you need is a contactless-enabled terminal. The terminal will read the information and complete the payment once the card is near.

Mobile Apps and Wallets

While contactless cards are an easy and speedy way of making payments, there is still the hassle of carrying them everywhere. Mobile apps and wallets have solved this problem. All your customers need to make contactless payments is carry their mobile phones everywhere, which they do anyway. Making payments through mobile phones has become incredibly popular in recent years. It’s easy, secure, hassle-free, and doesn’t anyone to touch anything.

To use this method, the customer needs to download any application they feel is best for making online payments and link it to their bank, debit cards, or credit cards. Most of the payments today are done by scanning the unique QR code through the app. Once scanned, the customer just needs to enter their secure pin, and voila, the payment will be done.

As a business owner, you only require a unique QR code and a contactless POS terminal to provide this method of payment to your customers.

Digital Payments

Also known as electronic payments, digital payment is an umbrella term for all payments that use a device to make payments. Whether your customers are making a payment on your website using their card or physically using their card to make a payment in your store, all constitute digital payments. But most digital payment methods have now become contactless. Using contactless cards and mobile wallets is an example of contactless digital payments. Another example is when your customers use it to make a payment on your website.

Also Read: How Digital Payments Can Ensure Online Business Success

With online shopping becoming a rage worldwide, digital payments have also become a necessity. Many websites offer several different options for digital payments, including credit cards, debit cards, UPI, or mobile wallets. To enable digital payments on your website too, you need to embrace a reliable and versatile payment gateway.

Benefits of Using Contactless Payment Solutions

Apart from requiring zero contact between payer and payee, contactless payments have several other benefits.

Fast Transactions

Contactless payments are much faster than other forms of payments with transactions taking mere seconds to finish. In this fast-paced world, where everyone wants to save time, contactless payments are exactly what we need.

Convenience

With options such as mobile apps and wallets, people do not even need to carry their cards with them. Contactless payments are not only hassle-free, but also make spur-of-the-moment shopping easy. All your customers need is their mobile phone and money in their bank account and they can go on a shopping spree in your offline or online store.

Also Read: Indian Marketplaces: Shift from Offline to Online

Security

Contactless payment methods take security seriously. With contactless cards, the antenna begins the payment only when in proximity to the POS. With other forms, it usually requires a unique code before the payment goes through. This makes the method highly secure and safe.

Also Read: 7 Tips for Safe Online Transactions

Factors to Consider While Choosing a Gateway for Contactless Payments

A payment gateway is crucial for your business. To ensure you choose only the best, consider the following factors-

Price

The price for a payment gateway depends on several factors, such as the number of monthly/annual payments, types of payments, etc. It is crucial to determine your requirements before choosing a contactless payment gateway. Some payment gateways charge a setup fee for new businesses. This fee is often fixed, but many options do not charge any fee.

Security and Safety

One of the most essential things for your business is to ensure your customers’ safety and security. Even if you are a small business, customers expect a highly secure payment gateway. Thus, while choosing a payment gateway, explore their safety and security protocols. Many payment gateways offer the option of customising the payment page, which might not even let the customer know they have been redirected to a third-party page. This makes the experience more secure and seamless.

Compatibility with Devices

Depending on your business model and the services you offer, the kind of visitors you will get will differ. So will the devices they use. Many contactless payment gateways have now upgraded themselves enough to work well with all devices, but it is essential to check for the same. Ideally, a payment gateway compatible with the maximum number of devices is the best. Be sure to check the platform yourself before selection.

Smooth Integration

Many customers usually abandon the shopping cart if they face problems while making payments. This is not something you want for your business. A payment gateway can only function well if it is integrated smoothly into your platform. The goal is to make the user experience as seamless as possible.

Customer Support

Excellent customer support is the key to excellent business operation. Choose a payment gateway that offers customer support 24*7 to avoid any unexpected problems. Consider it this way, if your payment gateway stops working or starts glitching during peak hours, you will lose significant time and money. Therefore, a payment gateway with round-the-clock support and several ways to reach them is essential.

In short, a contactless payment gateway has the potential to make or break your business. So, choose one that will cater to all your needs.

Why Use PayTabs?

Launched in 2015, PayTabs was started as an affordable payment gateway for small and medium-sized businesses. Today, it has grown into an award-winning payment processor. It offers multi-currency support and quick fund settlements. PayTabs is compatible with different payment options like MasterCard, Visa, OmanNet, etc. It also offers open APIs that allow you to integrate PayTabs into your website. PayTabs is PCI DSS certified too and has strong anti-fraud management to maintain secure services. It’s a win-win for you in every way.

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As a merchant or business owner in a modern, dynamic market, you need to enable flexible payment solutions to make sure that customer payments get accepted smoothly, irrespective of the method chosen. And PayTabs understands this perfectly well. Which is the reason why, they took a huge step towards meeting this objective by launching their very own transaction processing platform and globally validated unified payments solution called SwitchOn.

The payment solution has its own IP and is available for local deployment at an affordable price as well. It has been built based on deep use case expertise and empowers innovation in the region. Its architecture allows clients of different scales and from multiple industries to maximise the benefits while working in tandem with the legacy systems. Here are a few reasons why business owners like you are choosing SwitchOn payment solution over others.

Features and Benefits of PayTabs SwitchOn

· 3DS Solutions

With the help of SwitchOn’s 3DS Solutions, you can accept payments safely from customers or other merchants. It supports multiple payment methods including MasterCard, Visa, digital wallets, UPI cards, AMEX and more, so that you never miss a business opportunity. Your business can accept subscription or recurring payments from customers as well.

Also Read: The Most Popular Online Payment Methods

It is important to make sure that your digital payments are secure and safe from any kind of unauthorised activities. Luckily, SwitchOn payment method not only helps in enhancing the customer experience, but also provides fraud protection with the help of cardholder authentication.

· eCommerce Suite

Even if you are just foraying into the world of business and have no prior experience, SwitchOn makes your journey easy. This payment solution enables you to create your own online business in less than 2 months, complete with product images, descriptions, reviews, and more. It also helps you in creating self-service portals which are customisable and includes support for dispute management, batch or real-time settlement, and chargeback handling.

The eCommerce suite of SwitchOn will allow you to accept digital payments from the website or social payments from different social commerce platforms. The real-time merchant dashboard will also allow you to generate customer insights and analytics.

· QR Payments Solutions

One of the best ways of growing merchant sales is by enabling QR payments. SwitchOn payment method offers this capability by providing full omnichannel capability, both static and dynamic. It can be easily integrated into ATMs and POS for accepting value-added payments.

QR payments are a great way of increasing the customer base as it provides them with a very convenient way to pay for goods. SwitchOn understands that losing out on even one customer is not good for your business, and thus, includes support for Mastercard QR codes, Visa QR codes, and other QR programs. This payment solution also provides customisations for any national or domestic QR programs as well as close-loop QR programs.

Also Read: A Basic Guide to 6 Different Payment Solutions for Freelancers

· POS Management Solutions

A lot of people prefer cards as a payment method. SwitchOn’s POS Management Solutions will help business owners like you to accept card payments easily and more efficiently. Transactions can be monitored from the Business Manager Dashboard in the Terminal Management System. There’s POS Merchant Management available as well.

The POS management solutions will give you more control over fees, incentives, discount rates, restrictions and more. You can customise the portal as per your need and perform settlements in real-time or in batches.

· Switching and Authorisation

Paytabs SwitchOn payment solution has a plug-and-play mechanism that makes it easy to integrate into any business. It is beneficial for omnichannel business owners as well since it supports different popular payment schemes like Visa, Amex, RuPay, Mastercard, and more. The payment solution is highly scalable with real-time routing and switching.

You can accept payments in different currencies and from different time zones with the help of the SwitchOn payment solution. You can also benefit from financial transaction switching with reporting, transaction distillations, EMV-enabled payments, online audits, settlements, balancing, and switch reconciliation.

· Cards and Wallet Management

SwitchOn not only helps in managing different cards, but also has options for issuing their own virtual and physical cards as well. The plug-and-play system gets integrated quickly and supports credit, debit, and prepaid cards as well. The SwitchOn issuing solution issues payment cards easily and is a great step towards increasing customer experience and maintaining customer retention.

· ATM Management Solutions

The SwitchOn payment method provides ATM driving and monitoring for major ATM brands like Wincor & Diebold, NCR, Nautilus, GRG, and more, so that no customer gets left behind. This enables efficient cash management and forecasting as well as support for cash recycling. Transactions can be dispensed in multiple currencies and support dynamic currency conversion as well.

All in all, as a renowned fintech enabler in the MENA region, PayTabs aims to deploy a unique payment orchestration capability across the region. And its SwitchOn payment solution is doing just that, by enabling businesses like yours to boost growth and reach new heights while complying with the regulations of the local country.