# QR code payment

A QR code payment is a mobile payment method where payment is performed by scanning a QR code from a mobile app. This is an alternative to doing electronic funds transfer at point of sale using a payment terminal. This avoids a lot of the infrastructure traditionally associated with electronic payments such as payment cards, payment networks, payment terminal and merchant accounts.
To make a QR code payment, the consumer scans the QR code displayed by the merchant with their smartphone to pay for their goods. They enter the amount they have to pay and finally submit. This is a more secure card-not-present method than others.

## History

The QR code system was invented in 1994 by Masahiro Hara from the Japanese company Denso Wave.
In December 2010, the first documented description of QR code-based payments came from two patents filed by Shaun Cooley and Andrew Charles Payne, based on a prototype system developed for Norton Labs at Symantec called Norton Mobile Pay. US 8177125 describes a payment mechanism where a website displays a QR code and a mobile device's camera is used to read the code and complete the payment. US 9076171 describes payment mechanisms where a payment terminal displays a QR code that is scanned by a mobile device, a mobile device displays a QR code that is scanned by a payment terminal, and a mobile device displaying a QR code that is scanned by another mobile device. These patents have since been cited by companies like Wells Fargo, Google, Microsoft, IBM, United States Postal Service, Apple, Capital One, and Toast. There are no records of Symantec, Gen Digital, CA Technologies, or Broadcom attempting to enforce these patents in court.
The first mobile wallet app for cryptocurrency Bitcoin featured the ability to send and receive payments with QR codes in March 2011. In 2011, Chinese company Alipay designed a QR code payment method which allowed partnering offline stores to accept payment by scanning an individual's QR code in Alipay Wallet. In 2014, Chinese technology company Tencent introduced a similar feature on its messaging app WeChat to allow its users to make QR code payments. QR code payment has helped mobile payment become the most popular method of payments in China, accounting for 83% of all payments as of 2018. Nearly all shops, street vendors, most metro systems, buses, and taxis in Mainland China accept either WeChat Pay, Alipay, or Cloud QuickPass for payment.
In 2012, the Czech branch of Raiffeisen Bank International developed the Short Payment Descriptor format for exchanging payment information via QR codes. The format was soon adopted by other Czech banks as well as the Czech Banking Association as the national standard for QR code payments. SPD can technically be used with any bank using IBAN account numbers, although in practice it is only used within Czechia.
In 2014, Chinese technology company Tencent introduced a new feature on its messaging app WeChat to allow its users to make payments. This was introduced via in-app online wallet and a QR Code payment system resulting in major uptake in QR code payment services in China.
In 2017, the National Payments Corporation of India (NPCI) launched BharatQR as a single, interoperable QR code that could be used for making payments to and from bank accounts using UPI and wallets. It works alongside QR codes from wallet providers as well as card providers such as Visa's mVisa and Mastercard's Masterpass.
In 2020, PayPal announced the ability to pay with QR codes in its mobile app.

## Usage by industry
### Transportation
#### China

Most metro systems, buses, and taxis in Mainland China accept either WeChat Pay or Alipay for payment. The national railway operator, China Railway, also accepts the two major apps for payment.

#### Hungary

qvik enables payment within Hungarian National Bank's Instant payment system (AFR) by scanning a QR code, approving a payment request, NFC-based touch or clicking on a deep link within a mobile application. In addition to offering the same fast and secure payment as credit card systems for both purchases and bill payments, qvik is free for consumers and significantly cheaper for merchants than existing payment methods. Using qvik ensures payment security as the service is operated by Hungarian companies and user data remains within the country's borders.

#### India

Line 1 of the Mumbai Metro in India allows users to purchase a ticket on their phones using QR code payments. Instead of swiping an RFID card or single-use token, a QR code is generated on the Paytm app which is then read by a scanner mounted on the turnstile.

#### Malaysia

QR code payment is becoming increasingly popular recently in Malaysia as a convenient and secure way to pay for transportation services. KTM ETS and KTM Komuter Northern Sector, as well as KLIA Ekspres and Penang Ferry Service, are all offering QR code payments to their passengers.
As Malaysia continues to modernize its transportation infrastructure, it is likely that more services including Rapid KL will adopt QR code payments to enhance the passenger experience and streamline operations.

#### Philippines

QR code tickets, named beep QR, were introduced in LRT-1 on 1 June 2023 by AF Payments, Inc., the operator of beep card, in partnership with Maya, an e-wallet app. QR tickets can be bought on the Maya app or ikotMNL app. Each LRT-1 station is equipped with at least 1 QR code-enabled gate.

#### Indonesia

Indonesia has adopted a QR code payment system in the transportation sector to improve convenience and efficiency for commuters. Jakarta's MRT and TransJakarta bus systems now support payment via QR code Indonesian Standard (QRIS). This promotes a cashless society and mobile payments in Indonesia.

## Integrated QR code payment systems
### ASEAN Integrated QR Code Payment System

This integrated QR code payment system allows people to make transactions with banks or e-money that supports their local integrated QR code payment system in any of the participating countries. The ASEAN Integrated QR Code Payment System is part of ASEAN Local Currency Transaction (LCT) Framework, an initiave aimed at using local currencies and reduced dependence on certain currencies, particularly the US dollar, in cross-border transaction among ASEAN countries. Local currencies are used, meaning that transactions in Thailand using an Indonesian payment app will directly exchange rupiah with baht. Currently, four of the QR code payment systems in ASEAN are connected (Indonesia, Malaysia, Singapore and Thailand). Philippines are also planning to integrate their QR payment systems. The following are QR Payment systems that are in or soon will be in the integrated payment system.

#### QRIS (Quick Response Code Indonesian Standard)

QRIS is a standardized national QR payment system for Indonesia launched by Bank Indonesia on August 17, 2019. Almost all payment services in Indonesia support this system, including GoPay, OVO, Dana, ShopeePay, BCA, BNI, and BRI. It combines all the separate QR codes from different payment services into one QR code which can be used by merchants to receive payments from any e-wallets or banks that supports QRIS.

#### DuitNow

DuitNow allows all participating banks and e-wallets in Malaysia to use the same QR Code for transactions. It is launched by PayNet under the Bank Negara Malaysia's Interoperable Credit Transfer Framework (ICTF). Some of the banks and e-wallets that support this payment system are Maybank, Hong Leong Bank, CIMB, HSBC, Touch 'n Go eWallet, GrabPay, Setel, ShopeePay, OCBC, UOB, ICBC, and more.

#### Thai QR Payment

Thai QR Payment (Promptpay) integrates QR payment systems in Thailand. It was launched by the Bank of Thailand.

#### SGQR (Singapore Quick Response Code)

SGQR is a unified QR code payment system launched on September 17, 2018. SGQR combines multiple QR codes used by multiple payment services in Singapore, including PayNow, into one QR code. This scheme is co-owned by MAS and IMDA.

#### QR Ph

QR Ph is the QR code standard in the Philippines, approved by the Philippines Payment Management, inc. (PPMI) in accordance with circular 1055 of the Bangko Sentral ng Pilipinas. The system is based on the Europay-Mastercard-VISA (EMV) standard, allowing one QR Code to serve transactions from different banks and e-wallets.

#### VietQR

VietQR is the national QR code payment standard for Vietnam, launched as a collaborative effort by the National Payment Corporation of Vietnam (NAPAS) in partnership with several major banks, including Vietcombank, BIDV, VietinBank, and Agribank. Introduced to the public in 2021, VietQR aims to streamline digital transactions across various financial platforms by using a unified QR code format that supports interoperability among different banks and e-wallets.

### Swish Payments

Swish is a mobile payment system in Sweden, launched in 2012 by six large Swedish banks, in cooperation with Bankgirot and the Central Bank of Sweden. It allows users to make instant payments by scanning a QR code.

### UPI (Unified Payment Interface)

UPI is a unified instant payment system developed by the National Payments Corporation of India, launched on 25 August 2016 and was backed by 35 banks across the country in the first year of its launch. Multiple startups like Paytm who were providing digital wallets for customers and merchants, along with new market players like PhonePe quickly got into the scene, with them incorporating new merchants by providing QR based payment solutions, along with QR code scanners for customers in their respective mobile apps which resulted in the widespread use of QR based payments in India. In FY 2023, there were 84 billion UPI transactions, accounting to about Rs 139.09 trillion ($1.67 trillion). Singapore, UAE, Nepal, Bhutan, France and Sri Lanka have also started adopting UPI after seeing its success in India.