Are QR Code Payment Solutions A Thing Of The Past?

Have you ever used a QR code as a payment option? Do you remember when QR codes were the next big thing? Everything had them and many things still do. You might have not even known that they could be used as a payment solution. They could, an it appears that the time for that has nearly passed.

What Is A QR Code?

Even if you didn’t know the actual name for it you have seen a QR code. They can be found on nearly everything. It is a series of black squares and dots that can be scanned by an application on a smartphone or tablet to take a user to something more meaningful, like a website or a video. They are meant to simplify the process so a user does not have to type a URL in and can instead be taken directly to it.

QR codes work much the same was as a bar code that is found on nearly every product under the sun. The application scanner is able to translate the black dots and squares into something that can be understood by people and the scanner can return that information in a matter of seconds. 

QR Codes As A Payment Solution?

QR Codes another potential option as a payment solution to merchants. By simply using a smartphone and its camera it removed a lot of the infrastructure needed to process payments like terminals and physical cards. It is more secure than many, if not all, card-not-present payment solutions since QR codes cannot be manipulated easily and the payment is made and entered with the buyer’s smartphone.

QR codes were first introduced in 2012 as a method of sending and receiving Bitcoins and was introduced as a payment method in 2014 by Chinese tech company Tencent. They have also been used as a payment option for public transportation in Mumbai and can also be used with ride sharing services. 

Introducing NMT

It should be no surprise that within a decade the next generation solution has been introduced. NFC Money Transfer (NMT) keeps all of the advantages of the QR code but eliminates the need to use a camera to scan it. It uses NFC technology that allows a user to simply touch their smartphone to the reader. This will allow for faster transaction processing as the camera will not need to be opened, nothing needs to be scanned and no app needs to be selected. Security is also enhanced since the small operating distance will prove to be too small for someone to be able to steal the payment information.

The technology used with this is already present on millions of smartphones around the globe so little will need to be done on the consumer’s end. An NFC capable device would be needed for the merchant. 

At this point NMT has not been released to the public and is undergoing testing. Could this be a good payment solution for you? It offers speed, security and convenience so it should offer something for everyone. If this is something that you are interested in, or are just interested in having a NFC solution as a payment option give JLE Business Solutions a call and we can help you out.