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Thanks to rising interest in contactless transactions, QR codes — or quick response codes — have become a popular payment option for both businesses and shoppers. One study estimates that the number of smartphone users who scan a QR code at least once a year will increase from 94 million to 102.6 million by 2026.1
QR codes are simple: once customers scan one with a smartphone, they’ll be redirected to a website, app, or payment portal. Businesses can create their own custom QR codes and display them at their point of sale to accept fast, easy, and secure payments.
Ready to learn more about this contactless payment solution? Here, we'll explore the benefits of QR code payments for customers, businesses, and marketers.
First, let's look at the biggest benefits of QR codes for businesses:
Many touch-free payment options require a special payment terminal, and it may not be worth investing in the equipment or redesigning your payment process just to accept a few touch-free payments.
With QR codes, on the other hand, all you need is a standard printer. Just print your QR code, and you can accept touch-free payments in seconds.
Learn more about how to use a QR code to accept payments.
How safe are QR code payments for your customers? Rather than storing sensitive payment information, a QR code simply links the customer's payment app to your account. The app encrypts the customer's payment data, so they can pay you without sharing personal information like account numbers.
Studies show that easy and personalized checkout experiences can drive brand loyalty with shoppers — 50% consider ease of checkout when deciding where to shop.2
For some customers, this means that if you don't offer their favorite payment method, there's a chance they'll take their business elsewhere, underscoring the importance of offering several different payment methods at checkout.
Businesses can use QR codes to track and fuel participation in loyalty programs. Once a customer checks out using a QR code, you can prompt them to sign up for your loyalty program. You can also use QR codes like virtual punch cards, identifying each time someone makes a purchase or completes an action.
This kind of integration has contributed to the rise of QR codes as a payment tool, with major QSR brands recognizing the ability for more singular, comprehensive digital recognition of customer preferences and behaviors.3
The fewer steps it takes for customers to check out, the better. That's where QR codes can help. In the past, customers must find your register, fumble for their card, scan it, and verify their information before they can complete check out.
By using QR codes for payments, you invite customers to seamlessly complete their transactions right from their mobile devices in just a few taps. It’s fast and convenient.
Since QR codes are trackable, businesses can use them to collect data insights about customer behaviors and transaction trends.
For example, are more customers making purchases at a certain time of day or day of the week? When customers scan a QR code to visit your website, do they make a purchase right away or start browsing? What's their bounce rate? You can use QR codes to answer these questions and optimize your strategies going forward.
With QR codes, merchants can easily accept payments without needing a physical card reader or register. They can simply create their own code using a QR code generator, potentially saving valuable time and money.
For smaller merchants with a robust social media presence, QR codes simplify the process of transforming followers into customers. By embedding QR codes in posts, you can direct customers to payment pages or promotional content.
Given its trackability, QR codes also allow you to better measure online engagement, offering insights into the effectiveness of different social media channels in driving sales.
For more tips on getting started, check out this guide to marketing on social media.
First, let's look at the biggest advantages of QR codes for customers:
A new generation of digitally native shoppers and their concern over safety – both over the security of their payments and information, and their physical health – has contributed to a rise in contactless payment preferences. With in-person digital payments like QR codes, shoppers can pay for things without touching shared surfaces like payment terminals, pens, or change. Instead, the only point of contact is their own smartphone, which might go a long way in making these shoppers feel safer in making purchases.
90% of Americans now own a smartphone.4 If you display a QR code in your store or online, customers can use that smartphone to access your landing page from anywhere at any time.
Not only are QR code payments an easy option to offer your customers, with quick and secure payment transactions, but they’re also easy to set up for your business. When you're ready to get started, just download the PayPal Business app or log in to your account from the web to create your QR code and start selling.
Learn more about selling with QR codes and generating QR codes on your mobile device to accept payments.
Contactless payments with QR codes mean you can drive mobile clicks and conversions directly from your print and out-of-home ads. By placing QR codes on your posters and flyers, customers can scan them and start buying right from their smartphone or tablet.
Remember: QR codes can be a portal to any digital destination. Try boosting customer engagement by linking your QR codes to interactive content like quizzes, games, and even location-based guides or scavenger hunts.
One of the biggest benefits of using QR codes in marketing is data. After all, data is the foundation of any good marketing campaign.
By tracking QR codes, you can answer questions like: Which products are selling out fastest? Which store locations drive the most sales and when? Which payment methods do customers prefer? You can then use these insights to personalize your marketing campaigns toward customer interests and behaviors.
For more on getting started with QR codes for your business, check out this guide to contactless payments.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.
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