From scanning to payment: the evolution and future of QR codes
QR code payment, as an emerging payment method, is rapidly transforming consumer payment habits around the world. With continuous technological advancements and the drive of market demand, QR codes have evolved from their initial industrial applications to become a key force in promoting cashless societies and digital economies, extending into various sectors.
In the future payment ecosystem, QR code payments will continue to lead the trend, providing businesses and consumers with a more convenient and secure transaction experience.
This article discusses the emergence of QR codes and their current usages in various areas, especially in the payment industry. It also predicts the future growth trends of QR code payments in different regions such as Asia Pacific, North America and Europe.
What are QR codes and how did they emerge
A QR code, short for "Quick Response Code," was first invented by the Japanese company Denso Wave in 1994. Its initial purpose was to quickly identify and track parts in the automotive manufacturing process. Due to its advantages of storing large amounts of information and fast readability, QR codes were quickly adopted across various fields. Especially with the popularity of smartphones, QR codes have expanded from their original industrial uses into retail, marketing, payment, and many other areas.
Various uses of QR codes
Marketing
QR codes are extensively used in the marketing field, where brands use them to connect offline and online experiences, providing consumers with a more convenient way to interact.
By scanning a QR code, consumers can easily access a brand's website, social media pages, or even directly participate in promotional activities. This not only enhances brand-consumer interaction but also increases consumer engagement and loyalty.
Restaurants and hotels
In the restaurant and hotel industry, The use of QR codes has been greatly promoted. Especially during the COVID-19 pandemic, QR code menus and contactless payment methods became the preferred choices for reducing contact and increasing safety. Reports indicate that 52% of restaurants in the United States have adopted QR code menus, and the use of QR code payments has not only improved service efficiency but also enhanced customer safety.
Additionally, some hotels provide room service and information inquiries through QR codes, greatly enhancing the guest experience.
Food and product packaging
With the growing demand for transparency in product information, the application of QR codes on food and product packaging is also increasing. By scanning a QR code, consumers can easily access detailed information such as the product's origin, production date, and ingredients. This usage is more common in the Asia-Pacific region, where 65% of Chinese consumers believe QR codes are crucial for building brand trust.
Payment
QR code payment is one of the most important and widespread usage of QR codes, with its influence continuing to expand globally. Users can complete payment transactions easily by scanning the merchant's QR code. Compared to traditional cash or card payments, QR code payments are not only quick and convenient but also highly secure.
The rise of QR code payments began in 2011 when Alipay first introduced the QR code payment feature in China. Since then, with the addition of WeChat Pay, QR code payments quickly gained popularity in the Chinese market. By 2023, QR code payments accounted for about 85% of China's mobile payment market, making it one of the most widely used payment methods globally.
Future trends and predictions for QR code payments
Asia-Pacific region
The Asia-Pacific region, particularly China, is the most important market for QR code payments. With strong support from the Chinese government for digital payments and the promotion of platforms like Alipay and WeChat Pay, the penetration rate of QR code payments in China has reached an unprecedented level.
The total transaction value of QR code payments in China will continue to grow in the coming years, further consolidating its dominant position in the global payment market. It is predicted that by 2025, the Chinese QR code payment market will continue to expand at a double-digit growth rate, potentially reaching new heights in market scale.
North America
The North American QR code payment market started relatively late but has tremendous growth potential. In recent years, with the development of digital payment technologies and increasing consumer demand for contactless payments, the market acceptance of QR code payments in the United States and Canada has gradually increased.
Major payment service providers like PayPal have launched QR code-based payment solutions, further driving the adoption of this payment method. It is predicted that by 2033, the North American QR code payment market will grow at a compound annual growth rate (CAGR) of 17.1%, with the market size expected to reach around $23 billion.
Europe
In Europe, the adoption rate of QR code payments is currently low, but this situation is changing due to shifts in consumer payment habits and government support. Particularly in the tourism, retail sectors, QR code payments are gradually becoming a viable and popular payment method.
For example, in countries like France and Germany, an increasing number of merchants are beginning to accept QR code payments, especially driven by the demand for contactless payments following the pandemic. It is predicted that by 2033, the European QR code payment market will reach $12 billion.
How Silkpay helps merchants accept QR code payments
Silkpay, specializing in payment solutions, is dedicated to helping merchants who from Asia, the Americas and Europe easily integrate multiple payment methods.
By partnering with major payment providers like Alipay, WeChat Pay and Google Pay, Silkpay offers merchants an omni-channel payment solution, enabling them to conveniently accept QR code payments, online and in-store, from consumers around the world.
Whether online or offline, Silkpay can provide tailored payment solutions to meet the diverse needs of various merchants. With flexible and reliable payment services, Silkpay can help merchants stand out in a competitive market and drive global business expansion.
Conclusion
As a secure and convenient contactless payment method, QR code payments are rapidly becoming mainstream in the global payment landscape. From Asia to North America and Europe, the application and promotion of QR code payments are accelerating. Looking ahead, with continuous technological advancements and evolving market demands, QR code payments will continue to lead the global payment market, becoming a crucial force in promoting contactless transactions.
For businesses and consumers alike, QR code payments offer not only convenience but also inject new momentum into the global digital economy. In this ever-changing payment ecosystem, QR code payments will continue to play a vital role in driving the modernization of global payment methods.
About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe, America and Asia accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.
Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.
Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.
Sources
https://www.futuremarketinsights.com/reports/qr-code-payment-market
https://www.qrcodechimp.com/qr-code-statistics/
https://www.elinext.com/industries/financial/trends/payment-technologies-2024/
https://www.paypal.com/us/brc/article/8-payment-technology-trends-2024