How to Create a QR Code for Making Payments

QR code payments can provide significant benefits for small businesses at almost no cost, including:

  • Quicker payments
  • User-friendliness
  • Increased security
  • Increased relevance

In this guide, we review how making payments using QR codes works, how they can be generated, and what industries they are most suitable for.

How Do QR Code Payments Work?

Making payments through a QR code works in a similar way to any other QR code. Users use a QR code reader app or their smartphone’s camera in order to “scan” the QR code. 

QR code payments can function in any of the following three ways:

  • Customers can scan your business’s QR code. They are then directed towards your shop’s checkout, where they will need to manually type in their card details in order to complete the payment process.
  • You can scan a QR code on a customer’s smartphone screen. This can be used to finalize financial transactions between you and the consumer. Keep in mind that this approach will require you to confirm the transaction through a third-party payment processor (e.g., PayPal, Stripe, etc.).
  • You can use app-to-app QR code payments. These work in a similar way to the above options but require both you and the customer to have installed the same app. Through the app, the customer can produce a QR code that is an encoded version of their payment details. You will then be able to scan this to process their payment.

Why Do I Need to Use Payment QR Codes?

Payment QR codes can improve your customers’ experiences and make you operate in a more hygienic way. This is because they:

  • Are entirely contactless
  • Do not require customers to own a credit card or carry cash 
  • Allow multiple users to scan them at the same time
  • Are typically supported by major payment processors

There are several ways that you can facilitate the payment process between yourself and your customers by incorporating QR codes. Generally, you will need to find and work with a payment processing company that supports making payments by using QR codes.

Making payments by using QR codes can be safer because they allow your customers to avoid carrying any cash or cards with them. 

It can also increase your sales-generated revenue, as users will be more likely to make a purchase if all they really need to do is scan a QR code. 

Online stores are increasingly beginning to accept QR code payments for this exact reason. Again, the only prerequisite for this is that both you and your customers will need to make the purchase through a payment processor that supports QR code payments. 

At the same time, physical stores are relying on making payments with QR codes to ensure that they are complying with any social-distancing measures that are in place. This is important as it provides a more safe working environment for both the customers and the staff members involved. 

Businesses within the hospitality sector are a great example of this, including:

  • Restaurants
  • Cafes
  • Bars
  • Hotels

How Can I Use QR Code Payments for My Small Business?

In order to use QR code payments in your small business, you will need to follow these steps:

  • Find an online QR code generator that offers payment QR codes
  • Create a QR code for processing payments (You may need to include your financial details.) 
  • Download and share your QR code on your online and offline advertising channels. 

After you have created your QR code, your customers will be able to scan it in order to facilitate any payment that they need to make to you. Since QR codes are very affordable — and may even be free —  this can be a great option for small businesses with relatively small budgets.

Benefits of Using QR Code Payments

There are many benefits that small businesses can enjoy from using QR code payments. These include:

  • Increased customer satisfaction
  • Improved security
  • Improved cost-effectiveness

Increased Customer Satisfaction

Using QR codes to facilitate payments enables your customers to purchase your products and/or services with their preferred digital wallets without having to worry about carrying a credit card or cash with them. 

This can significantly improve your customers’ experiences, especially when they are used in conjunction with traditional payment methods. At the same time, using QR codes for payments can act as somewhat of a “safety net” for scenarios where customers accidentally forget their cash or payment card.

Improved Security

Financial transactions carried out through QR codes are very safe because the customers’ information is not actually stored by the businesses that are receiving the payments. 

Instead, these transactions are processed through a secure network (e.g., through Visa or Mastercard, etc.), and any card details or other sensitive information are encrypted. 

Note: Keep in mind that since there is no way of verifying the contents of a QR code before you scan it, you should only make payments using QR codes with trusted sellers.

Improved Cost-Effectiveness

Since all you need to make or accept payments through QR codes is a smartphone, payments are generally carried out significantly faster — especially in comparison to those made with cash.

QR codes additionally enable you to serve more than one customer at once, as they can simultaneously scan QR codes without having to worry about waiting in line to get served.

This has the added benefit of freeing up both your employees and yourself, allowing you to focus on other important areas of your business.

Frequently Asked Questions

Is making payments through QR codes safe?

Yes. Customers making payments through QR codes do not actually disclose any financial information since this is encrypted. 

Having said that, users need to be cautious because humans are incapable of recognizing the contents of a QR code before they have actually scanned it. 

This means that fraudsters can very easily replace printed QR codes and redirect users to a different site in order to obtain their payment details. 

Generally, you should only make payments using QR codes with trusted sellers.

Can I create a QR code for making payments for free?

Yes, but the extent of this will depend on the QR code generator that you use. 

Since QR codes that facilitate payments are dynamic QR codes, they are usually offered on a limited basis when free.

Are QR code payments dynamic or static QR codes?

QR code payments are made through dynamic QR codes. Static codes are incapable of facilitating such a process because they are simply a coded version of a URL or file link. 

On the other hand, dynamic QR codes store most of their information on an online QR code generator.

What is the best free QR code generator?

According to our recent review of the best QR code generators for 2024, the best free QR code generator is QR Creator.