Idea
Why do some countries prefer QR codes to physical cards–and how to work with both
by
iFAST Global Bank
The financial world is always evolving–sometimes in ways that are unexpected. For some, that has taken the form of QR codes, with consumers settling bills by scanning as opposed to using a physical card or NFC payment. While card machines have been the norm–and cash is still king in some areas of the world, QR codes have widespread dominance in countries like China, with almost all citizens favouring them over conventional methods.
Why are QR codes becoming more popular?
Speed
Instead of reaching into their wallets and pulling out a physical card to tap, users can just open their chosen payment app and scan a provided QR code with their chosen payment app. Sometimes, users can simply use their camera, and they’ll simply be directed to their payment app, saving them the hassle of even opening the app itself. That kind of speed is crucial in high-volume establishments, where customers need to be served as quickly as possible.
Costs
QR codes are much more cost-effective compared to conventional methods. With QR code scans, businesses can save on using card machines, meaning they don’t have to worry about payment processor fees, card machine fees, or any other fees associated with a traditional card reader. QR codes can easily be printed on paper, or hosted on an already pre-existing device, meaning that businesses can lower costs.
Simplicity
A third reason that QR code payments are popular is to compensate for the lack of NFC payment on some phones. Some budget phones don’t contain the technology to utilise NFC payments, meaning that users of those phones are forced to use either cash or their bank card to pay. Luckily, any modern phone with a camera can process QR codes, meaning that even those on a budget are afforded the right to pay efficiently.
Accessibility
Finally, QR code payments are popular because of accessibility. In regions like Hong Kong and China, the main QR code payment options are AlipayHK and Wechat. In addition to being able to link your bank account to these payment options, you are also able to top up your AlipayHK and Wechat accounts with cash at convenience stores, meaning that while users can add their bank account information, they aren’t forced to, and can still spend money quickly and conveniently, without having to carry around bills or coins, which can get chunky quickly.
Riding the trend
One way to take advantage of QR code cross-currency payments is by using an iFAST Global Bank account. With participating merchants, iFAST allows you to use Worldwide Scan & Pay to pay almost anywhere in the world using your Multi Currency Current Account, without any transaction fees. You’ll be able to pay a Singaporean merchant with your HKD balance, a Mexican merchant with your GBP balance, an Australian merchant with your AED balance, or even a Chinese merchant with your USD balance, and more. Simply open your iFAST Global Bank app, scan the QR code, and pay using your current account. You can even order which currencies take priority in your account. Simply tap the payments button, then tap Scan & Pay, then tap the Pay button on the bottom of your screen. You’ll see an option to re-order your currency payment priority so that you always pay with your preferred currency. Your money comes directly from your iFAST MCCA without transaction fees, meaning you can spend with confidence.
Worldwide Scan & Pay is for cross-currency payments only. Availability of QR payments may vary by country and merchant. T&Cs apply.
iFAST Global Bank is a member of the Financial Services Compensation Scheme (FSCS).
iFAST Global Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register number is 716167. We are registered in England and Wales, our company number is 4797759.
Please note that the provided details serve as general information and should not be considered as financial advice or endorsements. We strongly advise customers to diligently carry out their own research and consider seeking expert guidance for tailored financial choices.
