Tag Archives: QR code

NFC vs QR Code

With the COVID pandemic still being a major concern of people, sharing essential information with the citizens through effective means has become a necessity for the government. People are now more concerned about their safety than ever before. A report published by Walker shows that customer satisfaction and their experience will become the major factor that sets a brand apart from the competitors in the market.

To improve customer experience, businesses have started embracing modern technologies that could connect the offline and the online world. Now, the question is “which one is better”? Should you rely on QR codes or are NFC tags a better alternative? Let’s have a look:

NFC and QR codes are an innovation in the modern eCommerce technologies. Both offer unique functions, but with the same goal – to offer a seamless and safe user experience to your customers. Let’s understand each product and later we will discuss the differences, features, and benefits.

What is NFC?

NFC stands for Near Field Communication, a system that enables uninterrupted and smooth communication between two electronic devices in close proximity. It consists of a small chip. The appearance may look a little dull, but the performance of these chips is pretty impressive. According to technavio, 25% of mobile payments will be processed by NFC in 2021.

User Cases and Compatibility

The best use of this technology is for electronic, contactless payments. You must have seen the customer queue at the supermarket, where each customer swipes their cards at the POS to complete the transaction. It is NFC. In addition to payments, NFC is used for sending media files, documents, directions, mobile numbers, and files in other formats.

Despite being new to the market, NFC has garnered a lot of attention among smartphone users recently. The technology is compatible with Android and iOS devices, in fact, the number of Android devices compatible with NFC has increased in the past few years.

iPhone users have also witnessed consistent growth in near-field communication technology. Some iOS devices are capable of reading the NFC code from the home screen without having to install any mobile app.

Why Use NFC?

NFC is not as old and popular as QR codes, but the technology is globally accepted for contactless payments. Its popularity has skyrocketed after the pandemic. Here are a few reasons why businesses should use NFC tags:

A Wider Scope: the user case of NFC goes beyond contactless payments. Businesses have started using these tags for marketing. The NFC cards are designed for businesses looking for a smart way to share their contact details with their prospects. These cards direct your prospects to your website or email for easier and faster communication.
Convenience: It only needs one tap from customers’ end to sign up for the company’s loyalty program. So, if the customer experience is concerned, nothing outperforms NFC tags. Customers can use the NFC tags to collect and redeem reward points with a single tap.
Security: NFC is one of the safest technologies. It catches data from customers’ devices located within their acceptable radius.

What are QR Codes?

QR codes were launched as a better and powerful alternative to the barcode for inventory. It was designed in such a way that people could scan these codes from any angle with just about any device without any hassle. Introduced in 1994, the QR code reading has made a big impact not only in the inventory management market but it can be used in transferring digital information.

QR codes are small square-shaped boxes that can be scanned vertically and horizontally through any smartphone that has the barcode-reading function enabled. QR codes offer great flexibility. Like NFC, these codes can be used for making contactless payments at any retail store. You could also use it for location sharing and marketing.

Most businesses embed their website URL into these square boxes, allowing their audience to visit their website without having to memorize the URL. Similarly, QR codes are used to direct people to your blogs, landing pages, social media accounts, and other sales channels. Recently, many social media sites have embraced QR codes to enable a smooth and seamless information sharing experience for users.

Why Use QR Codes?

Over 9 million families scanned QR codes at least once in 2018, shows a report published by Statista. It is one of the most convenient ways to share information, transfer payments, and direct your customers to your commercial sites. Here are a few reasons why QR codes are better than NFC tags.

Versatility: QR codes are used for all types of websites, social media accounts, and mobile apps. For instance, a QR code that directs your user to your mobile app link can increase your app downloads. You can also share QR codes for product links, your email, landing pages, and more to extend your reach.
Ease of Use: QR codes can be scanned from any angle as long as you have a smartphone with QR code reading functionality enabled. Some mobile cameras have a built-in QR scanning feature, while others need to download an app to scan these codes. Either way, the scanning part is super simple.
Customizable: QR codes are customizable. Businesses can use customized codes that match their brand’s logo and looks relevant to their business practices. You don’t have to settle for the traditional black and white square boxes for the QR codes. Add interesting colours, put a nice background, and design a nice QR code that is relevant to your brand.
Security: Another major advantage of the QR codes is that they are used for the purpose they were designed for. They offer a high level of security to both customers and merchants.

Which One is Better?

Both NFC and QR codes deliver excellent performance when it comes to marketing, payment processing, and transfer of information. QR codes, however, are more advanced and relatively better than NFC. These codes can be scanned easily, allowing you to process your transaction in the fastest and easiest possible way.

Fiserv Delivers POS QR Codes With PayPal and Venmo

People have been using Venmo and PayPal to handle many financial transactions as of late. People are also using QR codes more often, as they are easy to scan and are more secure than other communication methods.

The financial payment service provider Fiserv is working with both Venmo and PayPal to manage mobile transactions. Fiserv will help introduce new QR codes that can work through PayPal and Venmo to run contactless payments.

Fiserv’s new system will allow businesses that use the Clover POS platform or the Fiserv Carat omnichannel system to accept Venmo and PayPal QR codes. The effort provides businesses the option to make in-person shopping and commerce more convenient.

Contactless payment options have never been more important than they are now. Providing customers the option to handle QR payments from PayPal or Venmo will be a plus for any business to consider.

But merchants often struggle in trying to find contactless payment solutions. It can be challenging for some merchants to support multiple payment platforms. The great news about Fiserv’s move is that it can work with the same platform that one uses right now. People who use Carat or Clover platforms can produce new QR codes that can work with existing PayPal and Venmo-supported devices, making it easier for them to complete transactions in moments.

How the System Works

The Venmo and PayPal app have become essential tools for contactless payments. But not all businesses are capable of collecting payments from these sources. The QR code system that Fiserv is supporting will allow businesses that use their POS system to accept these codes from a PayPal or Venmo account. The system works in moments and does not require the company to produce anything new.

The system can work with a few steps:

The customer can open one’s PayPal or Venmo app. The app is available for all major mobile phones and tablets.
The customer will then select an option to scan an item. The setup will link to the device’s camera. The customer can then look for a QR code to scan here.
The user then scans the QR code the retailer produces on the Clover or Carat program. The QR code must be on a customer-facing display.
The buyer will then confirm the purchase information on the PayPal or Venmo app. The app will display the funds the user will send to the seller.
A second verification method may work in some situations. The buyer has the option to use this for security purposes.
The money will move between the two parties, completing the transaction.

The system is very convenient and provides a simple approach to payments that everyone will appreciate. The process offers a touch-free way to pay for items. The customer can also link one’s credit or debit card to a PayPal or Venmo account, giving that person more freedom over what someone will use when paying for items.

What Makes the Process Ideal For Businesses?

Businesses that use the Clover or Carat platform should look at how well Fiserv’s support for QR codes can work. There are many positives for businesses to note:

Accepting QR codes can boost customer loyalty. Customers will be more likely to return to a store because they know the retailer can support the payment methods they want to utilize.
Customers might prefer to use QR code payments because they are easier.
A company may be interpreted as being more modern and with the times if it can support new payment methods and processes.
QR codes are more secure than other scanning methods. All items in a QR transaction will be encrypted, as the data is hard to decipher without the proper equipment.
Each QR transaction can work with a unique code. QR codes can store more data than a traditional platform, providing a consistent system for work.
QR codes are easy to produce on any computer. The code design can also be read on any screen. A user could even scan that code if it is partially obscured or if the screen is covered in dust, fingerprints, or anything else. The user can also spot it at an angle, as a scanner can identify QR data faster than a barcode scanner can monitor that unique code.
People who use Venmo and PayPal will have an easier time linking their credit cards, bank accounts, or other things to their payments. PayPal and Venmo both support many solutions for payment purposes. Customers will appreciate how they have more control over the payment types they will manage through this setup.

Testing Has Been Working

The expansion comes as PayPal has been testing its QR code payment system. PayPal established a pilot program last year where QR code payments were made available in a few global markets. The testing helped review how well QR-based transactions work and if they can make the sale process easy to follow.

PayPal’s testing has helped forward new QR-based solutions for payment purposes. Venmo’s setup is similar to what PayPal already uses for transactions. By expanding the payment options people can use, it becomes easier for all parties to handle their transactions well and without risk.

The process ensures transactions can flow well and that they can work as necessary. The problem with some traditional payment methods is that some cards are hard for devices to read. By using QR codes, it becomes easier to transfer the data between parties. It is also a safer approach, as the QR code will be different for each transaction. Moving towards this payment option will be a necessity to explore as the payment industry continues to shift.

Fiserv’s effort in managing QR transactions will be a practice worth watching. Fiserv has been at the forefront of payment technologies for years. The group’s new effort in handling QR codes from Venmo and PayPal will be a sight to be seen to stay on top, especially as many others might adopt the same payment process.

Exploring the Varying QR Code Adoption Rates Around the World

The Quick Response or QR code has become a necessity for various scanning purposes. The QR code is convenient for touchless payments and other transactions.

QR codes are becoming increasingly essential for secure payments. People are starting to see what makes QR codes so valuable and are picking up on their use. But the adoption rates for QR codes vary by country, with some places being more supportive of them than others. The global pandemic may still force people to use them more often.

Early Adoption In Europe

QR codes are more common in Europe. Part of this comes from Europe’s early adoption of these codes. Abode Systems found in a 2014 report that slightly less than 30 percent of people in Germany and France had used a QR code. The total went down to around 25 percent in the United States and the United Kingdom.

People in these parts of the world were more familiar with QR codes at the start. It would be easier for these codes to work in Europe and other places where people often use them.

Prominent In China

China is one country that has been accepting QR codes more than others. CNN Tech reported that at least a trillion dollars’ worth of transactions were handled through QR codes in China in 2016.

Much of China’s use of QR codes come from WeChat, a popular online social media platform available in the county. The app lets people communicate with each other and make mobile payments. The system uses QR codes to transfer funds, authenticate people, and get information on various things.

It appears that these codes would be more prominent in China and other countries around Asia. The system was established in Japan in 1994 as a system to track vehicles in construction. While it was intended to track the construction of new passenger vehicles, it has since found many other applications. It has become a replacement for traditional barcodes in many situations, including in retail and communication sectors.

Major Surge In India

India is another country that has adopted QR codes well. The Indian government started an effort in 2016 to cut down on fraud and corruption surrounding physical currency. Businesses around India have begun using mobile payment platforms that use QR codes to collect and exchange funds. They can do this without requiring paper currency.

The online payment platform Paytm supports millions of these businesses. Such transactions do not require physical currency, thus preventing fraud. It has been part of India’s ongoing effort to create a fair economy and to reduce risks.

American Acceptance

Americans started using QR codes more often as the 2010s progressed. Statista reports that about less than ten million American households had scanned a QR code in 2018. The number rose to about eleven million households in 2020.

QR codes are becoming more prominent in the United States. They are in use through various businesses and private individuals for many purposes:

Recording loyalty programs at different retail sites
Tracing products and shipments to ensure they reach their desired locations
Creating links people can scan to learn more about physical items; these can appear on billboards and other public messages
Accepting donations for various events or charitable activities
To help people communicate with others through social media platforms; this includes linking QR messages to social media accounts

How the Pandemic Changes Things

The most significant factor influencing the rise of QR codes has been the ongoing pandemic. QR codes are becoming more common for touchless payments. QR codes can send payment data to different parties without requiring any contact, thus providing a safer approach to trading funds. People can also use QR codes to scan and read documents online instead of using physical ones.

Statista found in late 2020 that nearly half of all Americans and those in the United Kingdom had used QR codes more often. Code adoption has also been on the rise in Canada, Australia, France, Thailand, Hong Kong, and other major markets.

Some governments are even requiring businesses to use QR codes. The Australian state of New South Wales requires stores to use QR codes for transactions to support contact tracing. The effort ensures people can be tracked and monitored if there is an outbreak in certain places. People who visited areas where outbreaks occur can be informed of the situation.

Further Work Is Necessary

Additional efforts will be necessary to make QR codes more viable. Governments could potentially start using QR codes to facilitate various monetary transactions. An example of this appears in Singapore, where the government is establishing national payment standards that utilize QR codes. The effort would make it easier for people in the city-state to receive payments from the government.

Pandemic-related changes that have caused businesses to become more reliant on QR codes could also make an impact. These codes are critical as people start looking for contact-free payment and document solutions.

Could the Positives of QR Codes Make an Impact?

It might be easier for people to start using QR codes if they understand the positives that come with them. Businesses and the general public may start using QR codes more often if they notice some of the benefits of the work:

A QR code can store more data than a traditional bar code. It features a two-dimensional approach to storing data. The layout includes content in its horizontal and vertical spaces.
QR codes are encrypted and hard to hack, making them useful and safe for financial transactions.
It is easier for people to read QR codes than barcodes. A QR code can even be read if it is damaged or partially obscured.
These codes can also be produced in massive sizes, including ones that could cover an entire billboard.

QR codes are already becoming more prominent worldwide due to the pandemic. But the benefits of QR codes and the familiarity that people have with these codes will make them prominent very soon.