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Functions, Working & Advantages of QR Code Payment


QR Code payment is a payment method that has gained immense popularity over the years. It is an entirely contactless online payment method with no exchange of credit/debit cards. Furthermore, the easy linking of QR codes with bank accounts through any UPI QR code app has made this payment method popular. From grocery stores, clothing & accessory stores etc., to companies that provide services for sale, nearly all provide QR code payment mode.

How QR Code Payment Works?

Quick Response Code, commonly known as QR code, is a scannable label that withholds information. This technology is similar to the barcode, except QR codes are square-shaped and contain much more data than a barcode. Although QR codes have been in use for several years for different applications, the introduction of QR code payment made the usage of QR codes reach maximum popularity across the globe.

A QR code consists of black and white squares of different sizes arranged in a specific manner. The arrangement of these spots differs from code to code, and thereby the information withheld also differs. The QR code generated for particular merchandise will contain information about its bank account to which the payment is to be done. All that a customer has to do is:

  • Download a UPI QR code app and link their bank account to that app. 
  • Use this app to scan the QR code of the store for payment.
  • Enter the amount to be paid and enter the security password, if any.
  • Then finally, click on “pay.”

This is how QR code payments work. 

History & Progress

QR Code payment

was initially started in China in 2011 by the Alibaba group. That payment method was considered quite handy, and it became progressively popular over the years. This popularity spread to neighbouring Asian countries like Indonesia, Singapore, Thailand, India, etc. The citizens widely welcomed QR code payments as an easy and safe method for transferring funds.

The QR code payment apps initially provided a “scan and pay” option to exchange money between their respective payment wallets. But now, with the latest upgrades, the new UPI QR code apps allow the transfer of funds from bank to bank without the need for having the same payment wallet between the customer and the merchant.

QR Code Payment Types
  1. Merchant-Presented: A particular QR code is created for every merchandise, and all the customers who have to make payments should scan that code.
  2. Customer-Presented: Every person has a particular QR code, and all merchandise to which a customer has to make payments will have to scan their specific code. 
Advantages and Functions
  • QR code payment apps are used for making payments to anyone who has their own generated and issued UPI QR code.
  • Payment QR codes can also withhold information about the particular amount to be paid, along with the details about the bank account to which it is to pay.
  • QR code can be used to transfer money between payments wallet to payments wallet, or payments wallet to a bank account, or bank account to bank account.
  • The customer can scan the merchant’s QR code through their mobile phone and make the payment. For a customer-presented QR code, the customer can make the payment by letting the merchant scan their QR code through the merchant’s mobile phone or even a barcode scanner that has the feature to scan QR codes.
  • The QR code can be scanned from a physically printed code on paper or a virtual QR code. 


QR code payment is touch-free, simple, less time-taking and very practical. Several payments apps are coming up that enable payments through these QR codes. Thus, choose the right app based on reliability, security, and additional benefits/offers presented.

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