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. 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. 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 UnionPay's 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 2017, the National Payments Corporation of India 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.
Since 2024, QR-based checkout options have expanded significantly through mobile wallets in retail and hospitality, exceeding $4.5 trillion in global transaction volume.
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 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
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. This promotes a cashless society and mobile payments in Indonesia.Integrated QR code payment systems
The integrated QR code payment system is a type of payment system that employs a standardized QR code format, enabling interoperability among multiple banks and e-wallet providers. This system allows consumers to make transactions by scanning a single QR code, regardless of the issuing institution of their payment app. This system typically shares the following characteristics:- Using the EMVCo standards.
- Operates through each country's domestic switching system, independent from global networks such as SWIFT, VISA, or MasterCard.
- Developed and owned by each country's central bank and/or government authority.
- Interoperability, allowing a single QR code to be scanned by various mobile banking or e-wallet apps.
- Availability as an additional feature within existing mobile banking or e-wallet apps, rather than as standalone apps.
- Availability for P2B transactions, with optional support for P2P, P2G, B2B, B2G, etc.
- Availability in both static and dynamic QR code formats.
- Cross-border transactions compatibility, enabling foreign tourists to use their home country’s apps while abroad.
ASEAN Integrated QR Code Payment System
On 30 June 2024, the four ASEAN central banks, Central Bank of Malaysia, Bank of Thailand, Bangko Sentral ng Pilipinas, and Monetary Authority of Singapore, together with the Reserve Bank of India and the Bank for International Settlements signed an agreement as founding members of Project Nexus, a multilateral international initiative aimed at enabling retail cross-border payments. Bank Indonesia participated as a special observer. The platform, which is expected to go live by 2026, will interlink domestic fast payment systems of the member countries.
As of April 2025, all ASEAN member states have launched their unified QR code payment systems, except for Brunei. The following are QR Payment systems that are in or soon will be in the integrated payment system.