One way to make mobile payment whether you are a consumer or a business owner is by using QR codes. While many are already all over this, some have yet to discover the many benefits of this payment option. The ‘QR’ in QR code means ‘quick response’ and that is one of the advantages most of us are looking for when deciding how to make payments. Indeed bank cards, payment gateways like PayPal and even digital wallets are trying to do just this. But what if there was another option that just required a functional Smartphone camera and came with no hidden costs for transactions?
While this is slowly changing, QR codes have been typically associated with scanning with the aim of being redirected to a website. Up until recently, the QR payment processing has been largely driven by China, where it was met with great success. Exactly because of this more and more countries are jumping on the bandwagon and for a good reason. According to a Deloitte report, making financial services available, accessible and affordable to the general public and businesses are directly linked to improved economic activity and growth.
The report focuses on a valuable case study which can be used as a success example for other countries. In Indonesia, 60% of the country’s GDP comes from the over 60 million small and medium enterprises. Naturally, many of these businesses struggle to afford the extremely high costs associated with setting up POS devices which forces consumers to pay by cash. And as everything shifts towards digital and quick, this will inadvertently leave both consumers and merchants reliable on cash.
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iWallet – the app that promises to change the payment game
Companies are now undertaking the mission of shifting the paradigm on this and leveraging QR codes as a payment processing solution. It’s pretty easy, as one app, iWallet, explains it. For consumers, the only thing they have to do is scan the code displayed on checkout screens at various shops, and the transaction is processed instantly. For businesses, in particular small businesses, it eliminates the need to cover high processing costs. There is no need to open a bank account, sign lengthy papers, make unnecessary commitments or pay outrageous fees.
For the iWallet app, the entire process relies on Automated Clearing House or ACH transactions. Due to the fact that the transfer does not rely on the major credit card networks such as Visa, MasterCard or AMEX, it isfast, secure, and cost-effective.
So how does iWallet actually work? Both individual and corporate customers fund an account by bank transfers or using credit cards. The amount available depends on how much is in an account and payments are automatically approved in line with that. All one needs is a Smartphone app to make payments, while merchants and business owners will need a QR code displayed at checkout. No expensive machines, no more waiting for the ‘connection made’ message to come up, no more extra fees.
In addition to this, the app is offering absolutely free payment processing up to $10 million a year. This takes an immense burden of the shoulders of those who would rather focus and reinvest in their performance and business success rather than having to give away chunks of their profits. Simultaneously, if we think about all those stories of stolen or lost bank cards which ended up being used without consent, the iWallet solution sounds even more appealing. Having been built with security as a top priority, the app requires authentication which means that even if someone manages to get into your phone, they won’t be able to access funds or use it.
However, there is still work that needs to be done to ensure QR code transactions will become the norm in the near future. As iWallet points out, collaboration between various stakeholders and an industry-wide approach are the answers. An infrastructure needs to be put in place to allow for merchants to tap into these opportunities and equally, consumers need to be informed and have access to information around the benefits of QR code payments processing. For all of us to be able to use this more broadly in payment transactions, standards need to be put in place so that both merchants and payment providers can adopt.