What is a QR Code? Uses in Banking & Digital Payments Explained
5 min read | 3 months ago
What is a QR code and how is it used in Banking?
QR code stands for Quick Response and is a special type of barcode that can be optimised using an application and the camera on any smartphone or tablet. The QR code stores data relevant to the product. QR codes can be found anywhere and are available to book tickets, board airline passes, or extract information regarding payment transactions.
With the scanning of QR codes by smartphone, customers can get instant accessibility to its content. The reader of the QR code continues an action like opening the web browser to a specific URL and other actions can also be initiated like storing information of credit cards, debit cards, and wallets, contact list of the smartphone and also connecting to the wireless network. QR code provides elevated capacity for data encoding, resistance to damage and can be read from any direction.
Uses of QR
The optimization of QR is broadband into different genres of business and customer availability.
Marketing
In terms of marketing agenda, QR codes can be optimised in advertisements and flyers so that they can provide more data regarding the product or the service. QR codes can be optimised for offering different deals coupons, promotion discounts and vouchers. It helps to engage brands with the customers and enhance awareness of the organisation.
Packaging of products
QR code can be optimised for providing tutorials on how to use this product and this can be used to deliver data regarding product origin and leverage into joining loyalty programs.
Seamless transactions
The cashless payments are gradually changing the business landscape for customers who can pay their bills directly through bank accounts and also make global purchases. A few years back QR codes were not well supported because of unsatisfactory internet speed, minimised compatibility with smartphones and lack of security. However, the transition of payment transactions through QR code has been fast and it is the most optimised and highly regulated payment gateway in the current scenario. The merchant providers need to accept QR code transactions through merchant accounts whereas customers need to have specific QR code applications like Google Pay, Phone Pay, Bharat Pay and Paytm.
Relevance to mobile transactions
There are different types of QR codes like Bharat QR that enable smooth and convenient transactions over mobile phones. PayZapp, a type of mobile wallet, has capabilities to examine and process encoded data in QR codes like Bharat QR codes as well.
The optimization of Bharat QR leverages an alternate channel of payment where customers need to download the application and they can also scan Bharat QR code at merchant stores and opt for payment mode to make transactions. After the successful transaction, both the cardholder and the merchant will receive a notification within their smartphone that denotes a successful payment transaction.
Used in Banking
The development of the Mobile Technology Acceptance Model has leveraged the adaptation of payment into the mobile environment in the Information Technology landscape. It has two significant factors which are mobile usefulness and mobile use. The application of QR codes in banking has been representing a prominent shift away from paper-based methodologies towards a digitally developed future. The transition has supported the sustainability of the mobile technology environment while enhancing the efficiency of the operations.
With the leveraging of banks into QR codes the industry is dedicated towards innovation making way for a much more interconnected and technology-developed banking environment. The banking sector has been adopting QR codes in a fast-paced methodology and the technology has also overcome conventional methods encouraging a new era of efficiency and digitalisation.
The increasing relevance of QR codes has led to the examination of various applications of QR codes in the banking sector. The advent of QR code payment through UPI systems has unburdened banks from long queues of cash withdrawals and high ATM transaction systems. It has leveraged a cashless transaction increasing digitization in the financial landscape of the business.
Conclusion
The growing importance of QR codes has made the payment transaction structure much more flexible and secure. The optimization of the QR code in the Unity Small Finance Bank is processed through Digital KYC where instant payments can be made through Unity Bank Application. This application has an embedded UPI payment system and also access to Paytm, Gpay, BHIM UPI and PhonePe with a transaction limit of Rs 10, 000/- to other banks and up to Rs 50,000/- within the Unity Bank
About Unity Small Finance Bank
Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.
