How To Pay With QR Code: Understanding QR Code Payment System

Ilaha Mammadova

Nov 28, 2023

5 min read

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QR code payment is a contactless payment method that allows quick transactions by scanning a QR code using the phone’s camera. QR code payment works by scanning the QR code provided by either the seller or the customer, which leads to the transition to the payment page and verification of the data. QR code payments are made using either the seller's provided QR code, the buyer's QR code, or the company's app. QR code payments are received after 5 steps, which include generating a QR code, choosing a payment provider, creating a merchant account, presenting a customer, and receiving payment. Businesses use QR code payments to accept various payments by creating a QR code and merchant account. QR code payments must be considered because they streamline the payment process, enhance security, and provide cost-effective solutions.


QR code payment is incredibly efficient, particularly for people accustomed to cashless transactions. Businesses and customers benefit from its convenience with a swift and hassle-free payment process. There are instances where security issues arise while QR code money payments are generally secure. Fraudsters exploit QR codes to obtain sensitive card information. It is imperative to exercise caution and thoroughly verify QR codes before scanning to safeguard against fraudulent activities. Now, let’s delve further into the workings of the QR code payment system, encompassing the payment and receipt of funds, the advantages and disadvantages it presents, as well as potential security concerns that arise.

What is QR code payment?

QR code payment is a contactless payment method that allows quick transactions by scanning a QR code using the phone’s camera. QR code payment eliminates the need for physical payment cards or terminals by including card details within the QR code. The seller or buyer scans a QR code to complete the payment. QR code payment solution is recognized for their simplicity and efficiency and is widely adopted by numerous businesses. Customers opt to pay using a QR code provided by the merchant or their own QR code containing their personal card information.

How does QR code payment work?

How does QR code payment work?

QR code payment works by scanning the QR code provided by either the seller or the customer, which leads to the transition to the payment page and verification of the data. There are 2 scenarios for scanning payment QR codes. First, the seller embeds relevant information within the QR code (Quick Response Code), such as their account and wallet address. A mobile wallet or QR code payment app connects with the payment provider after the customer scans the QR code, and the payment amount is displayed on the screen.

Secondly, the customer presents the payment code, and the seller scans it. The payment is completed using the customer’s card information stored within the QR code. The scanned information undergoes a security check before being confirmed in both scenarios. Scanning is carried out using a phone camera or any QR code scanner. The entire process is completed within a matter of seconds without the need for any additional cards or tools. A notification confirms that the payment has been processed upon successful completion.

How to pay using a QR code

Listed below are the 3 ways to pay using a QR code.

  1. Scan the seller’s QR code. The seller generates a unique code that instantly redirects the user to the payment page after scanning. The customers simply need to scan the payment QR code using their phone's camera to make a payment. The payment amount is displayed, the information is verified, and the payment process is finalized after scanning.
  2. Scan the customer’s QR code. The customer creates a payment QR code and inputs their card information into it. The customer presents the QR code to the seller to initiate the payment. Payment is processed using the card details embedded within it once the seller scans the QR code. The accuracy of the data is verified, and the payment process is finalized.
  3. Scan the QR code in the company’s app. Payments are made via QR code if both parties install the company's app. One party displays the QR code within their app. The other party scans the QR code using their app. The payment is authorized, and the transaction is completed once the information is verified for accuracy.

How to receive payment using a QR code

Listed below are the 5 steps to receive payment using a QR code.

  1. Generate a QR code. Choose a QR code generator and generate a QR code containing the necessary payment information.
  2. Choose a payment provider. Select a payment provider that supports QR code payments.
  3. Create a merchant account. Create a merchant account with the payment provider, which lets the funds from customer payments be deposited into the account.
  4. Present a QR code to the customer. Present the generated QR code to the customer, allowing them to scan and pay for it using their device.
  5. Receive a payment. Accept payment deposited into the merchant account after the customer scans the QR code and verifies the data.

How to utilize QR code payment for your business

Businesses utilize QR code payments to accept various payments by creating a QR code and merchant account. Businesses carefully select an appropriate payment provider for transferring payments. They establish a merchant account, which is the initial step in the payment process. Businesses present a QR code to customers, and customers scan the QR code using a phone or a dedicated QR code payment app. Customers are seamlessly redirected to the payment page after scanning, where a secure connection is established with the payment provider, and the payment is executed after verifying the provided details.

Businesses widely employ QR code payment for various purposes. It is commonly utilized by businesses offering food ordering, online ticket purchasing, taxi, and e-commerce services. There is a growing trend among businesses with physical stores to adopt QR payment methods, leading to increased daily usage. Businesses swiftly complete the payment transaction within seconds by simply presenting the QR code to the customer.

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What are the advantages of QR code payments?

What are the advantages and disadvantages of QR code payments?

Listed below are the 7 advantages of QR code payments.

  • Easy usage: QR code payment does not need other tools for usage. A mobile device is sufficient to make payments using a QR code. Customers or merchants simply scan to pay, completing the payment within seconds.
  • Cost-effective technology: QR code payment is cost-effective, requiring no specialized technology for generating or using QR code money payments. QR Code Creator easily creates cost-saving QR codes scanned by a smartphone camera.
  • Fast payment: QR code payments are completed within seconds, offering a swift and efficient payment experience that eliminates waiting in queues.
  • Secure payment: QR code payment has a high security level. All the card information encoded within the QR code is securely encrypted, protecting against unauthorized access or transmission to third parties.
  • Contactless payment: QR code payments are contactless, eliminating the need for physical cards or cash during the transaction process.
  • Versatile payment: QR code payment is used by various businesses. Different businesses generate a payment QR code and facilitate their payments.
  • Easy integration: QR code payment is easily integrated. Businesses initiate payments by scanning the QR code after creating a QR code and establishing an account with the payment provider. The process is designed to be simple and user-friendly.

What are the disadvantages of QR code payments?

Listed below are the 4 disadvantages of QR code payments.

  • Dependency on a smartphone: People must possess a phone with scanning capabilities to pay using a QR code. Payment is not complete without such functionality.
  • Dependency on the Internet: An internet connection is essential for QR code money payments. The link on the screen directs the user to the online payment page after scanning, where the payment is finalized.
  • Fraud: It is important to note that capturing QR code information during payment leads to fraudulent activities, resulting in failed transactions and potential loss of funds.
  • Awareness: QR code payments remain underutilized due to limited awareness by businesses and customers, who are generally unfamiliar with the payment method.

How is the convenience of paying cashless to someone using QR code payment?

QR code payment offers users convenience due to its paperless and cashless payment method. The ease of use of QR code payment stems from the requirement for a mobile phone, which makes it highly accessible for users. The payment process is swiftly completed within seconds by scanning the presented QR code using the phone's camera. QR code payment eliminates the need to carry physical cash or cards. Users only need to verify the data after scanning without sending checks, invoices, or other physical documents. All payment details are seamlessly displayed digitally within the application, allowing users to access and review payment information anytime. Both parties receive a notification confirming the transaction upon successful completion of the payment. The entire process takes place electronically, enhancing the efficiency and convenience of QR payment.

Why should you consider QR code payments?

QR code payments must be considered because they streamline the payment process, enhance security, and provide cost-effective solutions. QR code money payments offer a hassle-free experience for both payers and recipients with the convenience of making payments through a simple scan on a mobile phone. QR code payments eliminate the need for prolonged waiting times in queues, making it an attractive choice for businesses. The popularity of QR code payments is rapidly growing, with various industries adopting the method.


QR code payments have become a preferred option for food delivery, online ticket sales, taxi services, and a wide range of digital transactions. However, QR code payments are not limited to digital platforms alone. Many physical stores, including clothing boutiques and supermarkets, accept offline payments through QR codes. Security and cost-effectiveness are vital factors that make QR code payments highly desirable. QR payment enhances customer satisfaction and simplifies payment procedures for businesses and individuals.

What are the ways to avoid QR code payment fraud?

Listed below are the 5 ways to avoid QR code payment fraud.

  • Check the QR code sender: Do not scan the code without verifying the company when coming across a QR code and receiving a message or email asking to make a payment. Fraudsters create websites that look very similar to those of legitimate companies. Therefore, always take the time to verify the authenticity of the source before scanning the code.
  • Check the QR code: Be sure to verify the authenticity of the QR code before scanning it to make a QR code payment. Be cautious of counterfeit stickers that are placed over QR codes. These deceptive stickers misdirect to the wrong destination, resulting in the payment transfer to an unintended account.
  • Do not download an additional app: Do not download an additional app for scanning when a sender prompts without proper verification. Most smartphones have built-in camera functionality that allows scanning QR codes without additional apps. Warning of situations where downloading an app is required is essential. Such apps extract funds from accounts or capture sensitive card information.
  • Do not provide card information: Do not share card information without ensuring security if prompted to provide such details after scanning a QR code. There is a risk of interception of card information in such scenarios.
  • Download an antivirus app: Do not scan suspicious QR codes without having an antivirus or other security app installed on the phone as a precautionary measure. It redirects to malicious websites when scanning a QR code, compromising card information security. A reliable security program helps protect by issuing warnings if encountering harmful sites.

Is QR code payment safe?

Yes, QR code payment is a safe payment method. The inherent security of QR codes allows for safe transactions to take place. However, fraudsters exploit QR codes for malicious purposes, leading to the interception of card data. The level of risk depends on the information contained within the QR code. However, users check the QR code's authenticity and minimize potential dangers while remaining vigilant. Scanning QR codes from trusted sources must not pose any security issues.

Is there any QR code payment fraud?

Yes. There is QR code payment fraud. QR code fraud occurs when fraudsters exploit QR codes for malicious purposes, primarily to capture card data. Users' card details are directly or indirectly intercepted when they scan to pay. One common tactic is prompting users to download an app after scanning the code, capturing all their card information. Another method involves changing the QR code information and redirecting the payment to a different account.

Are QR code payments fast?

Yes, QR code payment is a fast payment process. QR code payment transaction is swiftly completed by scanning the QR code and confirming the information once the seller or customer scans the QR code. The entire QR code payment process takes just a few seconds and does not require any additional steps or tools. It makes QR code payment highly effective, particularly when people need to wait in a queue for payment.

Are there any limitations to using QR code payments?

Yes, there are limitations to using QR code payments. Smartphone and internet connectivity are some limitations when using QR code payments. Initiating a payment using QR codes becomes infeasible if the recipient's phone lacks the scanning feature. Paying via QR code is still not feasible if a phone scans but lacks internet access. The limited adoption of QR code payments restricts its usage for businesses and customers. Its applicability remains constrained in some contexts as it is not a widely utilized payment method.

QR code payment is one of the swiftest and most efficient methods available. QR code payment system is straightforward and requires no specialized tools. The QR code money payment process concludes by scanning the QR code presented by one party and verifying the information. Sellers and customers utilize QR codes provided by the seller or the customer via a dedicated app. Businesses are already transitioning towards the QR code payment method for its advantages. Diligent scrutiny before scanning mitigates potential issues, while QR code payments pose security concerns. The secure technology streamlines processes and expedites transactions.

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Content Manager

Ilaha Mammadova

As an experienced content manager, Ilaha specializes in crafting SEO-friendly content that blends creativity and strategy. With a passion for delivering high-quality, engaging content, Ilaha focuses on innovative ideas to help brands elevate their digital presence. Her dedication to excellence ensures that every piece ranks well and resonates with the target audience, making a lasting impact. In her free time, she enjoys singing a song and capturing moments through photography, adding an extra touch of creativity to everything she does.

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