Mobile payment solutions like WeChat Pay, Alipay and UnionPay QR code were part of everyday life in China before COVID-19 disrupted the global economy. However, the shift in consumer behavior and the necessity for merchants to find new ways of doing business, has propelled the adoption of mobile payments worldwide. In this blog post, we provide an overview of QR code payment, as well the benefits for merchants and consumers in the current context.
How does it work?
Merchants create static or dynamic QR codes to show customers. Static codes are generated in advance, and can be printed and placed near a store’s POS or published on an eCommerce site. Customers can then scan them with their smartphone, enter the payment amount, press “Buy”, and transfer the money directly to merchants. Dynamic codes follow the same principle, except they contain a specific amount pre-determined by merchants.
What are the advantages?
● From a business and consumer standpoint, paying with QR codes is less costly than with credit cards because it eliminates the substantial fees collected by banks and credit card companies.
● From a merchant’s perspective, accepting QR code payment is more profitable because it requires a limited infrastructure and no technical support. Buying or renting a credit card terminal can be costly. Mobile wallets like WeChat Pay and Alipay are app-based, and QR codes are generated online so business owners only need a printer, a smartphone, and a secure WiFi connection to process transactions.
● QR codes can be used in brick-and-mortar stores but also online in eCommerce stores, in instant messengers and on any screen or app.
● Merchants accepting QR code payment don’t need to pay fees associated with the reward programs typically offered by credit card companies. Instead, they can take advantage of WeChat Pay, Alipay and UnioPay’s tailored marketing initiatives to reach millions of users.
Who provides it?
UnionPay International—also known as China UnionPay or CUP—the world’s third largest debit and credit card payment organisation, and one of China’s top three online payment companies. WeChat Pay and Alipay also use QR codes for online payments, and in the marketing initiatives and campaigns they offer on their platforms.
Why accept it:
As a business operating during this unprecedented period, accepting QR code is a way of connecting with powerful consumer groups—like Chinese customers who use mobile payments everyday—or any other group that has turned to contactless payment during the pandemic. And if your business had to pivot its service offering and create an eCommerce presence to increase sales, QR code payment is also a convenient option.
The COVID-19 pandemic has turned the consumer-merchant dynamic upside down, and has hurt a lot of businesses who generated most of their sales in physical spaces. But inside every challenge lies an opportunity, and turning to QR code payment during a pandemic is one of them. It’s contactless, but also fast, efficient, and secure, which makes interactions between buyers and sellers a lot more fluid.
As the authorized partner of Alipay and WeChat Pay in Canada—and the official payment service and marketing partner of UnionPay International since August 2019—OTT Pay can help you integrate the UnionPay QR code solution to your current mobile payment offering. Give our team a call at (+1) 800-688-9838 or email us at info@ottpay.com.