How to accept contactless payments through QR codes

Pulling out a phone to pay has become second nature for millions of people. Whether buying a latte, ordering food online, or paying for a service, customers increasingly expect a fast, contactless way to check out. And one of the easiest ways for businesses to meet that expectation is QR code payments.

QR codes let customers scan and pay directly from their phones—no card readers, NFC terminals, or extra hardware required. For cafés, small retailers, and even e-commerce platforms, it’s a simple and affordable way to go contactless.

Why adopt QR code payments?

Speed and simplicity

A quick scan is all it takes. Customers open their phone’s camera or wallet app, confirm the payment, and they’re done. It’s faster than cash and often quicker than chip or tap cards, helping shorten lines and improve service.

Low setup costs

Unlike tap-to-pay systems that rely on NFC terminals, QR payments need only a phone or tablet to display the code. It’s ideal for pop-ups, delivery services, or small merchants looking to accept digital payments without investing in extra equipment.

Strong security

Every QR transaction is encrypted end-to-end. Because customers never hand over their card details, the process reduces fraud risk and keeps payments PCI-compliant.

Customer engagement

Beyond payments, QR codes can link directly to loyalty programs, promotions, or rewards, giving businesses a simple way to connect each purchase with customer data and insights.

A growing global trend

According to Grand View Research, the QR code payments market was worth USD 12.54 billion in 2024 and is projected to reach USD 61.73 billion by 2033, growing at over 20% annually. 

Asia leads the way—with 93% of Southeast Asian consumers using cashless payments and Singapore hitting 97% adoption—but usage is rapidly expanding across Europe and North America as contactless commerce becomes the norm.

How QR code payments work

There are two main types of QR code payment flows:

User-presented mode: The customer shows a QR code generated by their payment app (such as a digital wallet). The merchant scans it to complete the transaction. This is common for in-store checkout using wallets like Alipay or PayNow.

Merchant-presented mode: The merchant displays a QR code on-screen or printed at the counter. The customer scans the code, enters or confirms the amount, and pays directly. This suits both physical and online settings.

Once scanned, the process is simple:

1. The customer scans the QR code using their camera or wallet app.
2. A secure payment page opens with details pre-filled.
3. The customer confirms the payment.
4. Both customer and merchant receive instant confirmation.

QR code payments work well for food outlets, self-service kiosks, deliveries, and online checkouts. They are also ideal where fast customer turnover and m inimal infrastructure are priorities.

QR code vs tap to pay (NFC)

Both QR code and tap to pay options enable contactless payments, but each fits different operational needs.

NFC-based tap to pay is intuitive and fast but requires compatible terminals. QR codes are more flexible, especially for businesses that want to accept payments without heavy upfront costs.

Setting up QR code payments

Step 1: Choose a Payment Service Provider (PSP)
Select a PSP that supports QR payments and your target markets. Key factors include multi-currency support, integration ease, available wallets (Apple Pay, Google Pay, Alipay), and transaction fees.

Step 2: Create a merchant account
Sign up via the PSP dashboard and link your bank account to receive settlements. Some providers handle merchant onboarding automatically.

Step 3: Generate QR codes
Create static codes for general use (e.g., fixed displays) or dynamic codes for individual transactions. Dynamic codes can include order details, amounts, or loyalty identifiers. Many PSPs include built-in tools to generate these codes.

Step 4: Integrate and display QR codes
Embed codes in your point of sale app, website, or printed materials. Place them where customers naturally engage — at checkouts, tables, or packaging labels. Test across Android and iPhone devices to confirm readability.

Step 5: Process transactions and verify
When a customer completes a payment, you’ll receive an instant confirmation via your PSP dashboard or POS system. Ensure your staff can verify timestamps and receipts easily.

Step 6: Handle refunds and reporting
Refunds, disputes, and reconciliation can all be managed through the PSP’s dashboard. Analytics tools help monitor performance and identify high-traffic periods or payment trends.

Best practices for accepting contactless payments

• Use dynamic QR codes for one-time transactions to reduce errors.
• Keep QR displays clean, visible, and scannable under different lighting.
• Enable tipping options where relevant.
• Regularly test payments across multiple apps and devices.
• For tap to pay, ensure your point of sale app and terminals are updated to support contactless transactions.
• On iPhone and Android, review app permissions to allow NFC or tap-to-pay features.
• Confirm that your PSP is PCI DSS compliant and follows regional data protection rules.

Choosing the right contactless option for your business

The best method depends on your business model and operating environment:

When assessing costs, include hardware, transaction fees, and refund costs. Also consider accessibility — QR codes often reach more users in emerging markets, while tap to pay suits regions with established card networks.

Conclusion

QR codes have made accepting contactless payments more accessible than ever. Whether paired with tap to pay or used as a standalone solution, they offer a fast, secure, and flexible way for customers to complete purchases. By combining QR and tap options, you can meet your customers’ preferences across every channel and create a more efficient, inclusive payment experience.