QR code payments are digital transactions that allow customers to pay quickly and securely by scanning a QR code using their smartphone. A QR code is a type of two-dimensional barcode that stores payment information.
Since Apple introduced active QR code scanners in smartphone cameras in 2017 and nearly all other smartphone providers followed suit, QR code payments have been one of the fastest growing payment methods in the world. They are also one of the most efficient and simple ways to share information and complete online payments, because all users have to do is scan a code with their smartphone and the numbers reflect this. By 2025, a significant proportion of mobile users worldwide are expected to use QR codes for payments, making them one of the fastest-growing payment methods globally.
QR code payments have seen rapid adoption worldwide due to their simplicity and convenience. In 2024, the global QR code payment market was valued at USD 12.54 billion and is projected to reach USD 61.73 billion by 2033, growing at an annual growth rate of 20%. Asia Pacific remains the largest market, holding 60% of global QR code payment volume in 2025, with China leading the way, where 90% of retailers accept QR code payments as of 2025. Other regions, such as Europe and North America, are also experiencing steady growth.
Read on to learn more about what QR codes are, how QR code payments work and why they are rapidly becoming a key part of modern commerce.What is a QR code?
A QR (Quick Response) code is a type of two-dimensional barcode that stores information such as URLs, payment details or account data. When scanned by a smartphone or compatible device, it quickly transmits that information, enabling instant access to a website, app or payment screen.
Unlike traditional barcodes, which store limited information in a single line, QR codes can hold much more data and can be scanned from any angle, making them both flexible and reliable in a wide range of applications.
What is a QR code payment?
A QR code payment is a digital transaction initiated by scanning a QR code with a mobile device. It eliminates the need for physical cards or cash by connecting the consumer directly to the merchant’s payment page or app. The QR code can be displayed in various ways, such as on a POS device, a printed receipt or an online checkout page.
Depending on the setup, the QR code may be:
Static: a fixed code that links to the merchant’s account or payment page, suitable for small businesses or recurring transactions.
Dynamic: generated for each transaction and containing unique information such as the purchase amount and order reference.
When a customer scans the code, they can confirm and authorise the payment through their banking app or digital wallet, completing the transaction in seconds.
Different types of QR codes
QR code payments can be used across both card present and card not present environments. The way QR codes are generated and processed depends on where and how the transaction takes place.
Card present QR codes
In card present scenarios, QR codes are typically displayed at the physical POS, for example, on a payment terminal, checkout screen or printed receipt. These QR codes connect the customer’s mobile device directly to the merchant’s payment system for immediate authorisation.
When a customer scans the QR code using their banking app or digital wallet, the payment information is securely transmitted to the merchant’s acquirer for authorisation.
These transactions are ideal for retail, hospitality and transport sectors, where customers can pay in-store without inserting a card or handling cash.
Card not present QR codes
QR codes are also increasingly used in digital and remote payment scenarios, where the customer and merchant are not in the same location.
Examples include:
eCommerce checkout pages: The QR code appears on the payment page, allowing the customer to scan and pay through their mobile banking app or digital wallet without entering card details.
Invoices and bills: Businesses can include a QR code on a digital or printed invoice. When scanned, it directs the customer to a secure payment page with the amount and reference already filled in.
Donation campaigns: QR codes can be included on fundraising materials, posters or flyers, allowing donors to scan the code and make a donation through their mobile device.
In all cases, the QR code acts as a secure data carrier, passing encrypted payment details through the PSP’s or acquirer’s infrastructure for authorisation and settlement.
How do QR code payments work?
QR code payments create a direct link between the customer’s mobile device and the merchant’s payment system. Instead of inserting a card or sharing payment details manually, the entire process happens instantly through a secure scan.
Here’s how QR code payments typically work:
1. The merchant displays or generates a QR code. This can be a printed static code at the checkout counter or a dynamic code generated for each transaction such as on a terminal screen, eCommerce page or invoice. Dynamic QR codes are typically used in retail and eCommerce, as they are generated in real time and embed details such as the transaction amount, order reference and currency.
2. The customer scans the code. Using their mobile banking app or digital wallet the customer scans the QR code with their smartphone camera. The app immediately reads the data embedded in the code; this could be the merchant’s payment credentials, a transaction token or a secure link to the payment gateway.
3. Payment details appear automatically. The app decodes the QR code and displays the relevant payment information, including the merchant’s name, transaction amount and currency, ready for review. This allows the merchant to verify the information before approving the payment.
4. The customer authorises the payment. Once confirmed, the customer approves the transaction using their chosen authentication method, such as PIN, facial recognition or two factor authentication.
5. The payment is processed through the payment network. The authorisation request is transmitted from the wallet or banking app to the payment gateway, which securely routes it to the acquiring bank. The acquirer then sends it through the relevant card network or local payment scheme (Visa, Mastercard, UnionPay) to the issuing bank for approval.
6. Confirmation is sent in real time. Once approved, both the merchant and the customer receive confirmation instantly. The funds are then settled according to the agreed acquirer’s settlement timeline .
Behind the scenes, QR code payments use the same secure infrastructure as card or wallet transactions, including encryption, tokenisation and strong customer authentication, ensuring both speed and safety.
Benefits of QR codes
Speed and convenience
QR code payments allow customers to complete transactions in just a few seconds by scanning a code and confirming payment on their mobile device. There is no need to insert a card, enter a PIN or handle cash, which speeds up the checkout process and reduces queues in busy retail environments. Additionally, because the transaction details including the amount, merchant information and currency, are embedded directly in the QR code, the consumer doesn’t need to manually enter any information.
Contactless
Because QR code payments are entirely mobile, there is no physical contact required between the customer and the merchant. This touch-free process improves hygiene, aligns with modern health standards and reassures customers in environments where safety and cleanliness are a priority.
Secure payments
QR code payments operate within secure, encrypted frameworks. Payment details are transmitted safely from the customer’s device to the merchant’s account and authentication is handled through trusted apps or wallets using PINs, biometrics or other security protocols.
Flexibility across channels
QR codes can be used in a wide range of contexts, in-store, online, on invoices or as part of marketing campaigns. Dynamic QR codes can carry transaction specific information, enabling accurate payments and easy integration with digital receipts, loyalty programmes and promotions.
Moreover, in several markets, QR code payments are already accepted for bill payments and invoicing, enabling customers to scan directly from an invoice or utility statement to complete payment. In Asia, for example, in China, over 90% of mobile payments rely on QR codes, with users interacting with them 10-15 times daily, demonstrating how embedded this technology has become in daily transactions. This expands their utility far beyond point of sale to all channels of business operations.
Wider customer accessibility
QR code payments make digital transactions accessible to customers who may not carry cards or prefer mobile wallets. They also support cross-border and multi-currency payments, allowing merchants to serve international customers without additional infrastructure.