QR Code Payment in the UK: Guide for Businesses

Considering how reliant the UK population is on their mobile phones, with over 94% of adults now owning a smartphone, and 42% utilising contactless mobile payments, QR code payments have emerged as a game-changer for UK businesses.

As consumers increasingly demand quick, cashless transactions, and major card networks command high, profit-eating fees, QR code payments UK wide are an innovative, streamlined and secure way to pay for just about anything.

Whether you’re an online retailer, the city’s go-to car mechanic or the hottest Sunday-morning coffee-spot, read on to find out how QR code payments can elevate your UK enterprise, and how Noda’s open banking powered solution is best for business.

Understanding QR Code Payments

So, what exactly are QR codes and how do QR code payments work in the UK?

Like the humble barcode, only much more advanced, QR codes store data within their 2-D matrix pattern. They can be scanned via smartphone cameras to direct users to a specified webpage; anywhere from menus to gym-class schedules, and product technical sheets to videos or social media pages.

For QR code payments, customers are directed to an online check-out process, where they either enter card details, or authorise the payment via their digital wallet, payment app or banking app.

When the QR code Payment Service Provider (PSP) is powered by open banking, like Noda, QR code payments UK wide typically work by directing the user straight to their banking app to authorise the payment.

The Rise of QR Code Payments in the UK

QR code usage was undoubtedly propelled by the 2020 coronavirus pandemic, but their popularity was already growing after Apple introduced QR code scanners in smartphone cameras in 2017. They were first applied to payments back in 2011, by China’s Alipay, and soon became one of the most popular payment methods across Asia Pacific.

The adoption of QR code payments in the UK has been slower than Asia Pacific, with card payments still dominating the point-of-sale (POS) and e-commerce payment landscape, and further so after integration of contactless technology in credit and debit cards (Statista).

However, businesses across the UK have become increasingly discontented towards card payments, due to the transaction fees imposed on merchants, reportedly having risen 30% between 2019 and 2024. The steep costs have led to Mastercard and Visa being investigated by the UK’s Payment Systems Regulator (PSR), and various UK trade bodies, such as Federation of Small Businesses, calling on the PSR to reduce these fees.

Understandably, alternatives like QR payments for UK businesses, which offer the same convenience as contactless card payments while bypassing high merchant fees, are increasing in use – global QR payments are expected to exceed $8tn by 2030.

Benefits of QR Code Payments for UK Businesses

Businesses across various industries are embracing QR codes, enabling customers to scan and pay directly from their smartphone in just a few steps, while also having huge benefits for merchants:

• Convenience: Can be quick and easy to setup and intuitive to use for both businesses and customers.
• Security: Enhanced security features, reducing fraud and chargebacks.
• Accessibility: Given the ease of generating codes, they promote a more financially inclusive market, accessible to every type of vendor or business.

Accept payments on the go, such as at trade fares, pop-up markets or taking your business to a festival, and likewise for businesses who mainly operate offline, such as:

• Beauty businesses (salons, barbershops)
• Independent tradespeople (electricians, plumbers, repair services)
• Currency exchange and money transfer services
• Automotive repair shops
• Cafés and restaurants
• Other in-person retail

Furthermore, merchants that have raised prices due to card fees can potentially reduce prices to compete against other businesses, resulting in consumers benefitting from the proliferation of QR payments.

How to accept QR code payments in the UK

To start accepting QR code payments you first have to look at QR code payment service providers and select the best fit for your business. There are plenty to choose from, including Noda and other big names like PayPal, and Adyen (requires POS terminal).

As well as assessing fees, contracts and T&Cs, some key things to consider are:

• Security and compliance
• Ease of integration to your business
• Features and functionality
• Global reach, if necessary for your customer base
• Customer support

Our in-depth guide on how to choose the best QR code payment app gives you plenty more details on this.

One of the biggest considerations is the QR code payment method. When consumers scan to pay via QR code, the process varies depending on the supporting PSP, and can include entering card details, utilising digital wallets, linking to payment apps, or direct Account-to-Account (A2A) payments.

A2A payments are only supported with an open banking PSP and offer the best solution for your customers and your business.

Noda: The ultimate QR code payment solution for UK businesses

Powered by open banking, Noda is a global payment service provider offering businesses one of the most efficient QR code payment solutions in the UK. Whether you’re an online retailer or operate offline services from mobile massage therapists to MOTs, there are numerous benefits of QR code payments for businesses UK wide when you have Noda behind you:

• No setup costs: No card terminals or hardware required, no hardware maintenance costs and no technical skills required for set up.
• Low Transaction Fees: Fixed fee of just £0.20 per transaction, with no monthly fees, bypassing expensive card networks and percentage-based transaction fees.
• Real-Time Reporting: Instant visibility of transactions for easy accounting and cash flow management. 
• Simple Onboarding: Easy setup process with support from Noda representatives.
• Instant bank transfers: Payments directly from the customer’s account to yours, with Faster Payments Services, making it easier to manage cashflow.
• Compliant and secure: Advanced encryption technology, PSD2 compliant, FCA registered.
• Support whenever you need it: 24/7 customer support.
• Data-driven reporting: Know Your Customer, insights and analysis with Noda’s unique data service.

Businesses can offer both static QR codes, meaning consumers only have to scan a single code to initiate a payment, or dynamic codes where payment details can be altered for every sale.

Getting started with Noda's QR Code Payment for UK businesses

Getting started with Noda is super-straightforward. Our quick and easy onboarding process can have you set up and ready to accept QR code payments within one business day, and creating your QR codes takes just seconds:

1. Navigate to ‘QR codes’: Enter the transaction price (or let your customer enter the details on their smartphone) then create your QR payment.
2. Display the QR Code: Place the QR code in-store on QR stands or other printed materials, at your POS, on invoices, show to your customer via your mobile devices or use on e-commerce check-out pages.
3. Scan the QR code: Customers scan to pay via their banking app, funds are transferred to your account, and you receive an instant payment notification.

You can use your Noda dashboard to monitor transactions in real-time and manage your business account. You can also select different ways of how to pay with a QR code UK: 

• Dynamic QR Codes: Customers manually enter the amount before paying.
• Fixed-Amount QR Codes: Pre-set payment amounts for quick transactions.
• Merchant-Controlled QR Codes: Businesses set the amount before generating the code.

Conclusion

QR code payments are transforming the way businesses handle transactions, offering a secure, convenient, and cost-effective solution.

Noda is committed to leading the market, constantly evolving its solutions to meet the changing needs of businesses and providing the tools needed to thrive. You could have QR code payments set up within a day, so you and your customers can instantly enjoy the benefits. 

Speak with the Noda team today to get started.