QR Code Payments for Business: A No-Nonsense Guide

QR (Quick Response) codes, first introduced in the 90s to track automobile assembly parts, became mainstream during the coronavirus pandemic by offering ‘touch-free’ solutions for anything from menus to night-club entry.

A key use is QR code payments, expected to exceed $8tn globally by 2029. UK users are particularly keen, accounting for around 13% of all QR code usage in Europe. As payment trends continually shift towards contactless transactions, QR codes lead in promoting efficient, secure, and rapid payments.

From small retailers to booked-out restaurants, car repairs to professional service providers, Noda’s open banking QR code payments enable you to meet modern customer demands for cashless transactions.

Understanding QR Code Payments

What are QR Code Payments?

We’re pretty used to seeing QR codes – small square codes found anywhere; business cards, product-packaging, utility-bills, social media posts and more. 

Scan-able via smartphone cameras (mode­rn Android and iOS devices have built-in QR code scanne­rs), the matrix patterns are decoded and converted to direct users to relevant web browsers.

For QR code payments, users are directed to a web checkout page, i.e. a digital checkout counter, enabling them to securely make purchases, settle bills or pay for services.

How do QR code payments work?

QR code payments act as a bridge between physical and digital transactions. After scanning the code, users arrive on a payment page, where they can choose whether to proceed and approve the payment. The ultra-fast transaction can be completed in just a few clicks, while protecting sensitive data with encryption technology.

The intuitive interface only initiates the payments though; the payment method behind the QR codes determines process and functionality.

To pay with QR codes, Noda’s or another provider, it links to the associated check-out method like card payments, digital wallets or payment apps. The benefit of Noda QR code payments is that they are linked to open banking, bypassing expensive card networks, enabling instant fund transfers and providing the best merchant QR code functionality and ultimate efficiency:

1. Customer Scans the QR Code
2. Payment Information is Processed: The QR code directs the customer to their banking app for authorisation.
3. Funds are Transferred: Processed in real-time, funds are transferred directly from the customer's bank account to the merchant's account (Account-to-Account/A2A).

Open Banking QR Code Payments Vs. Card Payments

Compared to card-based transactions, there are clear advantages:

• Lower Transaction Fees: Bypasses card networks, which can be notoriously expensive for businesses.
• Enhanced Security: Direct bank transfers use strong customer authentication (SCA), reducing the risk of fraud, while cards are more susceptible to cloning and chargebacks.
• Faster Settlement: Real-time payment processing means funds can be transferred instantly, while card payments can take days to settle.

Benefits of QR Code Payment for Business

Let’s take a closer look at the benefits of QR code payments for business and consumer.

Efficiency and Convenience

Generating a QR code payment link takes seconds, with no requirement for additional hardware. Use on printed materials, physical surfaces or digitally (tablet/phone screens), making them extremely versatile.

Works with mobile-based transactions such as payment apps, digital wallets (e.g. Apple Pay, PayPal), and bank A2A, enabling transactions to complete instantly.

Cost-Effectiveness

Requires little upfront investment (such as sale terminals/card readers), and merchants using QR codes with open banking as a payment method can reduce transaction fees by eliminating costs associated with traditional credit/debit card payments.

Security

Data shared during QR code transaction processes is fully encrypted, making unauthorised access highly unlikely.

Payments linked to cards are further protected by tokenization (sensitive card details are substituted with alternative identifiers) and bank payments utilise the extra layer of security provided by the banking app, such as biometrics.

Global Reach

Caters to a global audience, supporting multiple currencies and ensures a consistent experience across borders.

Data integration

Can be integrated with other busine­ss systems, including in-store point-of-sales (POS) systems, customer relationship manage­ment (CRM) systems and loyalty programs, enabling customer data gathering and insights for e­nhanced marketing strategie­s and elevated custome­r service.

Getting A QR Code for My Business

Many platforms enable the use of QR codes for businesses, but at Noda, we’ve made it super-simple to get started and integrate QR code payments into your business operations:

How to Implement Noda QR Code Payments

After on-boarding with Noda:

Generate a QR Code:

• Log in and navigate to the payment link section.
• Enter the transaction price and currency (or let your customer enter the details on their smartphone).
• Generate the QR code.

Display the QR Code:

• Place the QR code at your POS, on invoices or on your website.
• Ensure it is easily accessible to customers.

Customer Payment Process:

• Customers scan the QR code.
• Routed to their banking app to authorise the payment.
• Funds are transferred to your account and you receive an instant payment notification.

Use your Noda dashboard to monitor transactions and access real-time reports and analytics.

Choosing Your Finance Partner for the Best QR Code Payments for Business

If you’re wondering how to create a business QR code, first consider which payment provider to work with.

Good fintech products offer quick transactions, better user experience and heightened security, but there are additional considerations:

Key Considerations:

• Security and Compliance: Look for platforms that comply with global security standards and local regulations and use features like end-to-end encryption and two-factor authentication.
• User Experience: Ensure the platform offers intuitive navigation and speedy transaction processing.
• Integration Capabilities: Check compatibility with your current systems POS systems, accounting software, and CRM systems.
• Transaction Fees: Understand fee structures, including monthly fees, transaction fees, and additional charges, and beware of hidden costs.
• Customer Support: Reliable support through chat, email, or phone should be non-negotiable. When it comes to payments, quick problem resolution enhances trust and satisfaction.
• Features and Functionality: Look for additional features like analytics, inventory management, or loyalty programs and choose according to what aligns with your business needs.
• Global Reach: Do your customer span the globe? Then you need a platform that supports multiple currencies, works in various regions, and simplifies cross-border transactions.

At Noda, we use the latest encryption technology and are fully PSD2 compliant while offering easy API integration and set-up. Noda clients also benefit from 24/7 customer support, AI-powered financial analytics and insights, and operations across 28 countries. All for highly competitive, affordable fees.

A Step-by-Step Guide on choosing the best QR Payment App for your business. 

How Are QR Codes Used in Business

There are endless ways to sell products or services with a QR code. Here are some key examples:

• Retail: QR code payments can positioned around the store and integrated with in-store POS, or an alternative to POS terminals to facilitate quick and easy transactions.
• E-commerce: Improve the checkout experience for online shoppers or to quickly send a payment solution to a customer facing check-out problems.
• The hospitality industry: As well as the ubiquitous QR code menu, diners can pay for meals (including tips) directly from their table, and the local coffee spot can speed up Sunday-morning queues.
• Travel and transportation services: Hotels can offer an instant check-in/check-out service via QR codes, while commuters can purchase and validate public-transport tickets.
• Professional services: Tradespeople like plumbers and electricians can present customers a QR code and collect payment while on site, without the hassle of carrying a card terminal.
• Wellness and beauty: Maintaining the zen flow, salons and barbers can seamlessly collect payment on the spot, with zero stress and minimal costs.
• Automotive services: New tyres, MOTs and car repairs can all be paid in seconds via a QR code.

As well as easy payments, businesses can use QR codes for promotion by quickly directing customers to limited-time offers, personalised discounts or further product detail. 

Strategies for Leveraging QR Codes For Business

As well as understanding how business QR codes work, knowing how best to use them is essential:

• Customer Education: Use clear, simple guides to help customers understand QR code payments.
• Promote QR Code Payments: Offer discounts or loyalty points for using QR codes and promote/highlight the benefits via your marketing channels.
• Ensure Security: Choose a secure QR code payment provider like Noda and regularly update your tech to prevent security breaches.
• Integration with Other Systems: Integrate QR code payments with CRM, inventory management, or loyalty programs for better insights and efficiency.
• Test and Update: Test and update your QR code system to ensure optimal performance and security.

Find more tips on using QR code payments.

Noda QR Code Payment Solution

Noda’s robust online payment ecosystem connects banks across the UK and EU, facilitating ultra-quick QR code payments and other effortless transactions. We also have extensive coverage in Brazil and Canada, enabling seamless cross-border transactions. 

Noda’s QR code payments offer a low-cost alternative to card payment processing, with instant settlement directly to your account. Our easy set-up doesn’t require any coding or development, so you can be up and running within minutes, saving you valuable time and bringing open banking efficiency directly to your customers.

Noda’s Offline QR Code Payments

UK-based businesses can benefit from Noda’s offline QR code payments, enabling you to have QR codes at any customer-facing POS. Ideal for in-store, pop-up events, tradeshows or delivering goods or services directly to a customer.

Noda’s Online QR Codes and Payment Links

Our online QR code payments are available globally, providing a quick and easy no-code payment link to share with your customers.

Conclusion

Consumers now expect seamless, efficient, tech-enabled transactions. Not having open banking solutions and options like QR code payments risks leaving your business behind.

Noda’s cost-effective solution can bring versatile digital payment to your business instantly, helping future proof your operations and meet the needs of the modern customer.

If you’re ready to move your business forward, contact us for a free consultation to discuss your situation.