What's a QR code payment? Guide and how it works

What's a QR code payment? Guide and how it works

In recent times, QR codes have become ubiquitous, utilized for diverse purposes ranging from scanning advertisements in magazines to accessing restaurant menus and even facilitating customer payments in retail stores.

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But how does QR code payment function? What steps must you follow to pay with a QR code? Can QR codes also be employed for transferring money to friends?

This guide will explain everything you need to know about making payments through QR codes, and we'll highlight Wise as an optimal method for transferring funds to friends, family, and businesses abroad, both online and in-app.

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What is a QR code payment?

QR stands for Quick Response. A QR code is a square-shaped image that encodes information—similar to a barcode found on retail products, but with the additional capability to store significantly larger amounts of data.

Currently, QR codes serve numerous functions, including online transactions, in-person payments at stores, and peer-to-peer payments to friends.

To execute a QR code payment, simply scan the QR code using your smartphone’s camera.

Subsequently, depending on the setup, you can input the payment amount and transfer the money—either by entering your card information, using an e-wallet like Apple Pay or Google Pay, or another alternative payment method.

Which types of QR codes are there?

Although you might not notice it, there are actually two main types of QR codes: static and dynamic.

Static codes cannot be modified after they are created, whereas dynamic QR codes can be edited and disseminated with greater ease.

Both types have broad applications ranging from marketing and data collection to money transfers and payments.

Make international online payments with Wise

Many QR code payment services exist, but they are often limited to domestic transfers in USD.

If you need to send money internationally, consider using Wise. You can effortlessly set up a Wise payment online or via the Wise app and transfer funds to bank accounts in over 80 countries, across more than 50 currencies.

Wise utilizes the mid-market exchange rate—the rate you’ll find on Google—and offers low, transparent fees, which you can review and compare before confirming your transaction.

The next time you need to transfer money across borders, explore Wise to see how much you can save.

Get a Wise Account in minutes.

How do QR code payments work?

Now that we understand what a QR payment is, let's delve into how to set up QR code payments, whether you are scanning another person's code or having them scan yours.

Scanning the recipient's QR code with your smartphone

One of the simplest methods for making a QR payment is by simply scanning the recipient's QR code with your smartphone camera. Your camera will recognize the QR code, prompting a message that asks you to tap the screen to follow the linked information encoded in the QR.

Based on the QR code's configuration, this may redirect you to a specific payment gateway or mobile wallet.

For instance, Venmo allows businesses to generate QR codes for payments, which can either include a pre-set amount or let customers input their payment amount. Venmo also permits personal users to generate their own QR codes for payments from friends.

Getting your QR code scanned

In some scenarios, merchants can scan your QR code to facilitate a payment from you.

This will rely on whether the merchant accepts payments through the same QR payment app that you use or a compatible one.

If both you and the merchant utilize the same QR payment app, they can scan your code with their smartphone or a handheld barcode reader to initiate the payment.

Cross-app QR code payments