Why QR Code Invoicing is the Future of Digital Payments

The market size for QR code payments at a global level is expected to exceed USD 51.58 billion by 2032 after growing at a rate of 16.5% annually. And it doesn’t come as a surprise. With internet and smartphone penetration rapidly increasing, more and more people are going online to shop for everything from essentials to luxuries. Plus, the recent health pandemic effectively highlighted the importance of getting transactions done while minimizing touch. Hence, contactless payments are in vogue and modern businesses in the UAE are jumping on the bandwagon in droves.

QR code invoicing for digital payments is especially disrupting the landscape by facilitating fast, smooth, and efficient transactions. Since a quick scan is all it takes to go through with this payment, QR codes are simplifying life for both merchants like you and consumers. Continue reading to understand how QR code invoicing works and the many benefits of such a payment system.

Decoding QR Code Payment Systems

QR code invoicing for digital payments essentially requires merchants to generate a code that represents relevant payment details. After a customer uses their smartphone to scan this code, the payment gets processed via an already-linked banking app or digital wallet. There is no need to involve any cash, physical cards, or point-of-sale machines. The process is explained here in more detail:

• With the help of an electronic invoicing system (like the one offered by PayTabs), you can churn out QR codes that encrypt multiple aspects of a payment, like date, merchant information, transaction amount, VAT details, and any unique identifier.
• The customer, after receiving the QR code, scans the same. Payment details show up once the code is decoded.
• Relevant information is then conveyed to the customer’s banking app or digital wallet. Once the payment is authorized, it gets processed via a secure gateway.
• Lastly, both you and the customer receive confirmation that the transaction has taken place. Payment details are also recorded for auditing and reconciliation.

Now, let’s find out why QR codes are the future of mobile payments.

Advantages of QR Code Payment Systems

QR codes are among the top digital invoicing trends that will impact the future of payments in more ways than one. Here are the key reasons why that is so:

• Instant Payment Processing

The ‘scan and pay’ feature of QR codes allows them to save a customer’s time and energy dramatically. It just takes a few seconds for someone to scan a code and pay via the desired method. This means, the transaction or checkout process is hassle-free and satisfactory. Even in a physical store or eatery, QR codes facilitate speedy and contactless payments, thereby minimizing the transfer of germs. The instant payment processing attribute helps your brand to make a positive impression on customers and boosts loyalty.

• Accessibility

It is easy to scan a QR code as long as the customer has a smartphone with a camera and access to internet. There is no need for them to carry cash or cards. This is good news for a wide range of demographics, including those who are still unbanked. In other words, QR code payment systems make it possible for your business to reach out to different kinds of consumers in terms of age, gender, socio-economic situations, and education levels. You get to sell and earn more.

• Multiple Currencies Accepted

Here is another reason why QR codes are increasingly emerging as one of the best mobile payment solutions in the UAE and elsewhere. When you partner with a provider like PayTabs for your e-invoicing needs, you can send QR code invoices to customers in any part of the world. They can scan and pay in their local currencies, which makes for a comfortable and familiar experience. Your funds will get settled in the home currency though. Foreign customers will not only trust your business more this way, but will also feel deeper engagement and choose to come back for repeat orders. Hence, expanding to new geographies is easy with QR codes.

• Cost-Effectiveness

QR code invoicing for digital payments can also help you save a lot more money than conventional PoS systems. The requirements to get started are quite basic and transaction fees are also affordable. So, if you are running a startup or small business, offering a QR code payment system can help you control costs significantly.

• Robust Security

Facilitating payments through QR codes reduces the scope of card-related frauds like card cloning, account takeover, skimming, application scam, and phishing. Moreover, the customer’s payment details are encrypted with advanced techniques and processed via safe channels to minimize data breaches.

• Analytical Insights

Top providers of QR code payment systems make sure you can obtain statements for all the invoices paid. You can also track and control payments from a single, unified dashboard. This not only streamlines your financial operations, but also helps you to derive actionable insights from all the payment-related data collected. This can, in turn, enable you to make more informed decisions in the coming years and spot any gaps in the payment system and bridge the same.

QR Codes are Indeed the Future of Mobile Payments

Did you know that in 2020, 1.5 billion people around the world made payments using QR codes? And by next year, almost 30% of all mobile phone users are also expected to pay via QR codes. These codes are dominating digital invoicing trends for multiple reasons, as discussed above – instant payment processing, accessibility, multiple currency acceptance, security, cost-effectiveness, and analytical capabilities. Being contactless, QR code payment systems are also making the world a safer place and empowering even unbanked consumers to purchase what they need or want. It is especially the way to go if you own a small business or startup and want to invest conservatively in your payment ecosystem for now.

So, what are you waiting for? Get in touch with PayTabs to discuss your requirements, explore our services, and kick-start QR code invoicing. As a leading payments infrastructure company with presence across the MENA region, PayTabs offers avant-garde solutions for the sake of local commerce and financial inclusion. Our dream is to power all digital transactions with safe, simple, and scalable solutions.