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QR Code: Driving digital payment and financial inclusion

In a world where acronyms are key to communication, let us first define what QR code stands for: it is the acronym for Quick Response Code, a method of representing data in a visual, machine-readable form.

The chronological timeline of the evolution of the QR code started in the 70s with the development of the 1D Barcode, that was mainly used within automotive & retail supply chain industries for its reduction of data entry errors and the increase of data entry-speeds.

However, this 1D Barcode showed some limitations such as:

·       It holds less than 85 characters

·       It creates a wide barcode and may be difficult to scan from phone and tablet cameras.

In 1994, the 2D Barcode was developed: it represented data using two-dimensional symbols and shapes and surpassed its predecessor in data storage, scanning speed and usability - it provided the ability to scan from any orientation.

Standardization is a significant milestone for the QR Code rise: this technology has been approved by ISO as one of its international standards and was then used for different purposes such as: money transfer, bill payment, merchant payment of online transactions.

The use of QR payment gives many benefits, for each party:

·       Consumer:

o   Convenience: widespread usage of smartphone

o   Ease of usage: quick scan functionality

o   Fast process

o   Attractive user experience

o   Security: as secured as the other technologies

·       Merchant:

o   Cost effective: no need to handle the POS lifecycle, the merchant just needs to print a barcode or provide it on a mobile phone

o   Wide acceptance: easy to deploy

·       3rd party: 

o   Rich amount of user data being collected

As of now, the QR code is widely used worldwide with hubs in China and India where is respectively represents 82% and 51% of the transactions.

The US are right behind: Walmart, the biggest retailer in the World, has adopted a QR Payment System within its app where an estimated 11 million household will scan a QR Code by 2020.

At the global level, a surge of 300% is expected over the 5 next years as more merchants will be relying on this technology; QR codes on mobile devices are expected to surpass 5 billion by 2022 and the number of QR coupons redeemed through mobile will reach 5.3 billion by 2022.

With a culture of offering innovative payment solutions, HPS provides a unique interoperable mobile payment platform: PowerCARD Mobile Switch. This platform enables banks, wallet providers and fintechs to make payments, transfer money between their users independently of their wallet platform (service provider). Also, this solution offers comprehensive QR code payment capabilities among other mobile capabilities.

PowerCARD Mobile Switch is based on the latest messaging standards – ISO 20022

To know more about HPS interoperable mobile payment platforms and QR use cases, please contact sales@hps-worldwide.com.