QR Codes Payment Market Size - By Offerings (Solution [Static QR Code {Merchant-presented QR Code, Customer-presented QR Code}, Dynamic QR Code], Services), By Transaction Channel (Face-to-face, Remote), By Payment Type, By End User & Forecast, 2024 - 2032

QR Codes Payment Market Size - By Offerings (Solution [Static QR Code {Merchant-presented QR Code, Customer-presented QR Code}, Dynamic QR Code], Services), By Transaction Channel (Face-to-face, Remote), By Payment Type, By End User & Forecast, 2024 - 2032

 QR Codes Payment Market Size

QR Codes Payment Market size was valued at USD 10.4 billion in 2023 and is expected to grow at a CAGR of over 15% between 2024 and 2032, owing to its integration with loyalty programs and discounts. Businesses can provide customers with quick rewards, such as points, discounts, or cashback, at the point of transaction by integrating QR code payments with loyalty programs. With incentives and special offers, customers are more likely to accept and utilize QR code payments on a regular basis.

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Businesses can utilize the data from these transactions to better understand consumer behavior and customize marketing campaigns. The mutually beneficial relationship between ease of payment and customer incentives cultivates a devoted clientele and drives the growth of QR code payments.

Collaborations with merchants and service providers are essential to the general acceptance of QR code payments. Customers find it easier to use QR code payment choices in their regular transactions when big-name merchants, eateries, and service providers incorporate them into their checkout procedures. These partnerships increase the QR code’s acceptance network, giving customers the assurance of a dependable and comfortable payment experience at a variety of businesses. Additionally, these alliances often entail cooperative marketing initiatives, which have the potential to increase awareness and persuade customers to try QR code payments.
 

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Together, merchants and payment providers build a strong ecosystem that promotes the expansion of QR code payments and encourages consumer and merchant acceptance. For instance, in March 2024, the Hong Kong Monetary Authority (HKMA) and the Bank of Thailand (BOT) collaborated to focus on enabling retail payments for travelers via a cross-border QR code payment system, known as the FPS x PromptPay Link. Through the payment system, travelers from Thailand and Hong Kong can make retail payments by scanning the Hong Kong FPS QR code and Thai PromptPay QR code displayed by merchants, who receive their funds immediately.

Market fragmentation and a lack of standards present serious obstacles for QR code payment companies. Compatibility problems arise from the frequent implementation of disparate QR code formats and standards by various nations and payment providers. For instance, due to variations in encoding techniques, transaction procedures, or security protocols, a QR code payment system created in one nation might not work in another. Customers that travel or conduct cross-border purchases may find that their preferred payment option is not accepted in various locations due to this fragmentation, which causes uncertainty.

Additionally, companies and retailers encounter challenges when incorporating several QR code systems into their payment infrastructure, raising the complexity and implementation costs. The lack of a unified standard hampers the seamless use of QR codes across various platforms and devices, restricting the potential for widespread adoption. To overcome these pitfalls, industry stakeholders need to collaborate on establishing common standards and interoperability guidelines, ensuring that QR code payments can be universally accepted & trusted.

QR Codes Payment Market Trends

The proliferation of QR code payments beyond traditional retail is one of the emerging trends in the market. QR code payment systems are being adopted by industries such as healthcare, transportation, and education at a growing rate. QR codes are being used in the transportation industry to provide frictionless fare payments for public transportation systems, as well as in the healthcare industry to enable expeditious and contactless payment for medical expenses. They are also being used by educational institutions for other transactions, such as fee payments.

The application range of QR code payments is increasing across various businesses, making them a flexible and commonplace payment option.

Another important trend in the QR code payment market is improved security measures. Payment providers are using real-time transaction monitoring and cutting-edge encryption technologies to address concerns about fraud and tampering. Dynamic QR codes are being implemented to reduce misuse and boost security, which change after every transaction. Furthermore, two-factor authentication and biometric verification techniques are being incorporated into QR code payment procedures to give users more security and foster system confidence. These developments in security are essential for promoting broader adoption and guaranteeing secure transactions

The integration of QR code payments with emerging technologies, such as blockchain, AI, and the Internet of Things (IoT), is becoming increasingly common. While AI can be used to examine transaction trends and spot fraudulent activity, blockchain technology enables QR code transactions with increased security and transparency. Smart appliances and wearable technology are examples of IoT gadgets that are being outfitted with QR code payment capabilities. This makes payment experiences more inventive and convenient. The evolution of QR code payments is being driven by this integration with cutting-edge technologies, making them more effective and flexible to emerging trends.

QR Codes Payment Market Analysis

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Based on end user, the market is divided into hospitality & leisure, retail & e-commerce, e-ticket booking, and others. The retail & e-commerce segment is expected to register a CAGR of 20% during the forecast period.

• The introduction of QR code payment systems has had a substantial positive impact on the retail sector, improving the shopping experience for both customers & retailers. Customers can use their smartphones to quickly make contactless payments at retail stores by scanning QR codes. This expedites the transaction process and shortens wait times at checkout counters by eliminating the necessity for handling cash and processing card transactions.
• Retailers can also combine QR code payments with loyalty programs to give customers customized discounts and rewards, increasing customer engagement and retention. In addition to offering merchants useful data insights into consumer behavior and purchasing habits, QR codes also help with inventory management and focused marketing. QR code technology is inexpensive and simple to use, making it an attractive option for retailers of all sizes, from small independent shops to large chain stores.
• Traditional online payment methods can be easily replaced by secure QR code payments in the e-commerce industry. By integrating QR codes during the checkout process, e-commerce platforms enable customers to quickly complete transactions by scanning the code with their mobile devices. This technique improves the overall user experience by eliminating the need for human card entry.
• Moreover, repeat customers can benefit from faster and more convenient transactions by connecting QR code payments to digital wallets. Using QR codes, e-commerce companies can run a variety of promotional campaigns. For example, they can offer discounts or use code scans to get users to exclusive offers.

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Based on payment type, the QR code payment market is divided into push payment and pull payment. The push payment segment dominated the global market with a revenue of over 25 billion in 2032.

• The push segment pertains to the proactive measures implemented by financial institutions, businesses, and governments to encourage the adoption of QR code payments. These measures include public awareness campaigns, subsidies for merchants implementing QR code technology, and the development of national standards for QR code payments to ensure security and interoperability.
   
• Governments and fintech companies are also driving the push segment by integrating QR code payments into their mobile banking apps and digital wallets, offering incentives such as cashback rewards, discounts, and lower transaction costs. Many regions, particularly in Asia Pacific, are actively encouraging the shift toward cashless societies through the implementation of QR code payment market.
• These stakeholders aim to improve payment system efficiency, decrease dependency on cash, and increase financial inclusion by promoting the use of QR codes. The coordinated endeavor across several industries to advance QR code payments is essential for quickening their general acceptance and solidifying their position as a conventional mode of payment in retail and online settings.

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Asia Pacific QR codes payment market accounted for 35% of the revenue share in 2023. The region has a sizable, tech-savvy populace with a high smartphone penetration rate. Technology advancements, government initiatives, and consumer desires for convenient and contactless transactions have all contributed to the rapid adoption of QR code payments in nations such as China, Japan, and South Korea. Major systems, such as Alipay and WeChat Pay, have made it possible for people to make simple, safe, and flexible payments for a variety of uses, leading to the widespread adoption of QR code payments in China.

Furthermore, the strong government support in the region for digital financial inclusion and the push toward a cashless society have expedited the spread of QR code payments. The Asia Pacific region has become a leader in QR code payments due in large part to the existence of forward-thinking fintech companies and legislative frameworks that encourage this growth.

The QR code payment market in the U.S. is expanding significantly due to the growing popularity of contactless transactions and the growing use of mobile payment solutions. The integration of QR code payment features by well-known payment platforms, such as PayPal, Venmo, and Square, facilitates the adoption of this technology by customers and businesses. The demand for QR code solutions has increased due to the acceleration of contactless payment systems brought about by the COVID-19 pandemic.

However, as traditional credit and debit card payments are still quite popular, the market faces obstacles such as limited customer awareness and adoption. The IT industry in the U.S. is known for its innovation and competitiveness, as it is always improving the security and usability of QR code payment systems.

Payments via QR codes are becoming more popular in Japan, as the government is promoting a cashless society. Through programs and financial aid, the Japanese government has been aggressively pushing digital payments and encouraging businesses to use QR code payment systems. Leading companies in the market, including PayPay, LINE Pay, and Rakuten Pay, provide easy-to-use QR code payment systems that are combined with loyalty programs and savings.

Although there are obstacles due to the aging population and heavy reliance on cash, QR code payments are becoming increasingly popular among younger generations and urban areas. The market is growing owing to Japan's highly developed technological infrastructure and high smartphone adoption rate.

South Korea's tech-savvy populace and robust digital infrastructure are driving the country's fast developing QR code payment business. Consumers are becoming more accustomed to using QR codes for payments owing to mobile payment platforms such as KakaoPay, Samsung Pay, and Naver Pay.

The popularity of QR code payments is aided by the government initiatives to encourage a cashless society and the pervasive usage of smartphones. QR code transactions are made easier by South Korea's effective and safe digital payment environment and high level of consumer technological trust. Additionally, the industry is marked by intense competition between domestic and foreign competitors, propelling ongoing innovations in QR code payment solutions.

China leads the world in QR code payments with a highly developed and extensive use of this technology. Major payment services, such as WeChat Pay and Alipay, have completely changed the financial scene, making QR code payments commonplace in both urban and rural areas. Millions of Chinese consumers now favor QR code payments over traditional payment methods owing to its speed, convenience, and seamless integration with social media and other financial services.

The QR codes payment market has been further boosted by government backing for digital payments and the widespread use of mobile devices. QR code payments are widely accepted across all sectors and are utilized for a wide range of transactions in China, from high-end shopping to street vendors.

China has been leading the way in 2023 with alternative payments making up almost two-thirds of the total value of e-Commerce payments made in the Asia Pacific region. India is not far behind, either, as there has been a notable increase in alternative payment methods since 2018.

The market for QR code payments is different in each of these regions. While South Korea gains from high digital adoption and government initiatives, the U.S. concentrates on innovations and customer convenience. Japan makes use of government backing and tech infrastructure and China takes the lead with its extensive and integrated digital payment ecosystem.

QR Codes Payment Market Share

Revolut Ltd and PayPal, Inc. held a significant share of over 5% in the QR codes payment industry. Revolut Ltd., a well-known fintech business with headquarters in the UK, has had a big influence on the QR code payment industry with its cutting-edge digital banking solutions and financial services. With QR codes, users may access a wide range of features on Revolut's mobile app, such as bitcoin trading, budget management, and international money transfers. Revolut's integration of QR code technology makes it possible for its users to make safe and easy payments at partner online and offline retailers.

Peer-to-peer payments are supported via this feature, which lets users send money to friends and family rapidly by scanning QR codes. Revolut's global client base has made QR code payments a popular alternative due to its emphasis on consumer ease and security. Furthermore, the extensive use of Revolut across many nations makes cross-border transactions easier, improving the overall utility and appeal of QR code payments in an increasingly digital and globalized economy.

PayPal, Inc., a leader in digital payments globally, has made considerable inroads into the QR code payment market by utilizing its large user base and strong technology foundation. PayPal's QR code payment system makes it simple and safe for customers and companies to transact. Without the need for conventional point-of-sale systems, small businesses and individual sellers can easily accept payments by generating QR codes for payments right within the PayPal app.

Because it allows contactless purchases, this functionality has been especially helpful during the COVID-19 pandemic, as it lessens the need for touching actual cash. With PayPal's incorporation of QR codes into its Venmo platform, QR code payments will become even more popular among younger, tech-savvy consumers. The business's emphasis on security, ease of use, and integration with its wide array of financial services has solidified PayPal's position as a key player in the market, driving innovation and expanding the possibilities for digital transactions worldwide.

QR Codes Payment Market Companies

Major players operating in the QR codes payment industry are

• PayPal, Inc.
• Revolut Ltd
• Block, Inc. (Square)
• Mastercard Incorporated
• UnionPay International Co. Ltd.
• Clover Network, LLC
• Nearex Pte Ltd.

QR Codes Payment Industry News

• In June 2024, Dinara, a popular Moscow-based social media influencer, went viral on the internet for her unusual search for an Indian spouse. She posed with a male mannequin while at an Indian shopping center, holding a placard that said, "Looking for an Indian husband (unmarried)." It was also simple for anyone who was interested to get in touch with her as the sign featured a QR code that led to her Instagram page.
• In May 2024, PhonePe, a Bengaluru (India)-based company, partnered with LankaPay and launched PhonePeUPI payments in Sri Lanka, a facility that can spur Indian tourism in the island nation and provide a boost to the local economy.

The QR codes payment market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments

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Market, By Offerings

• Solution
  • Static code
    • Merchant-presented QR code
    • Customer-presented QR code
  • Dynamic QR code                     
• Services

Market, By Payment Type

• Push payment
• Pull payment

Market, By Application

• Face-to-Face
• Remote

Market, By End User

• Hospitality and Leisure            
• Retail & E-commerce 
• Transportation             
• Healthcare       
• Utilities             
• Education        
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA