QR codes have not only become more popular in the last few months – they are predicted to be the leader among payment instruments with NFC payments.
QR codes have been around for years, but they are still not made ubiquitous. But, as happens with many things in our “new” world, the coronavirus epidemic changed the situation. QR codes have not only become a lot more popular in the last few months – they are predicted to be among the leading payment instruments equivalent to NFC payments in the Kovid world.
First, it is the merit of China, or rather, giants Alipay and Tencent. As a result of their joint work to standardize QR codes, a consortium of platforms has been formed in Asia to process such transactions using a single standard. According to a May Tencent report, the volume of transactions using QR codes increased 25.86% in the first quarter compared to the same period in 2019. During the epidemic, government, businesses and individuals have used the WeChat QR code a total of 140 billion times.
“QR Code Economy is a new economic model that creates ubiquitous digital connectivity between people, things and places using easy code scanning in the WeChat ecosystem” – Tencent
Companies outside China, watching the trend, are rushing to replicate the success of Alipay and Tencent. In July it became known that Apple Apple is working on a new tool to allow users to pay Apple Pay by scanning QR codes or traditional barcodes with an iPhone camera. And retail giant Walmart has updated its Walmart Pay app to allow users to seamlessly process QR codes and only use contactless payments even after quarantine ends.
In May, PayPay introduced QR code payments in 28 countries around the world, and the fees for such transactions were canceled. “In today’s environment, buying and selling goods in a safe and secure manner is a priority for people around the world,” said John Conze, senior vice president of global consumer products at PayPal.
Mobile ordering platform LevelUp has partnered with digital POS solution provider Toast to accept QR codes while paying restaurant bills. By the way, according to recent Grand View Research ReportNorth America will become the leading market for QR payments due to the widespread use of technology in the transportation and retail sectors.
According to analysts, the overall unpaid market is projected to reach $ 4.68 trillion by 2027.
The coronavirus epidemic has opened up other uses for QR codes. For example, customers can scan the QR code placed next to products in stores to learn about the availability and characteristics of a product. For contract tracing, the use of QR codes to manage the spread of COVID-19 is of particular interest. The TrackCOVID service, for example, creates an anonymous graph of interactions. When visiting a public place or gathering in groups with others, the user scans the QR code and looks at the checkpoint. In case of positive result of COVID-19, the user can report it through the application without disclosing his identity. Using a graph of interactions, the app will notify users who may be at risk.
And what about Ukraine?
In early summer, the National Bank approved an integrated approach to the formation and use of QR codes for settlements. This is the first about credit transfer. Having an integrated approach to requirements to create QR codes will increase the speed of settlements and reduce operational risk. Thus, the regulator has plans to popularize the QR code, firstly, to simplify the use of this tool for merchants as well as those participants in the payment market who are service providers (specifically, government, administrative And utility services). All of this, ultimately, will contribute to the growth of non-cash payment amounts.
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