The global mobile technology market is projected to rise, reaching over USD 5,500 billion by 2026, a substantial increase from its 2019 value of USD 290 billion. As one of the key technologies driving this surge, QR codes have emerged as an essential tool in reshaping how we manage transactions and interact with financial systems.
Even handling money is getting a high-tech makeover in today’s tech-dominated era. QR codes’ versatility has made it into the finance industry, making financial transactions smoother, smarter, and safer. With the advent of QR code technology, connecting financial institutions and people have become more efficient and seamless.
The crucial role of a QR code generator in transforming the financial sector, from streamlining payment transactions to enhancing security measures, has been significant.
The rise of QR code payments
The QR code’s journey from its inception for automobile manufacturing in 1994 by Masahiro Hara to its current role in payment systems is a tale of unintended innovation. China’s early adoption of QR code payment systems through platforms like Alipay and WeChat Pay to achieve cashless transactions set the stage for a global shift. Soon enough, these became the norm throughout the country. This innovation cascaded to other Asian countries, including India and Singapore, fueled by initiatives like India’s QR Code UPI and government-driven digital payment campaigns.
QR codes found usefulness even beyond Asia, with the Netherlands’ iDEAL platform incorporating them for smoother in-store and online transactions. Its use continues to spread beyond these regions, taking over the UK, Brazil, Spain, Germany, and the US market. Grand View Research shows that the market for QR code payments reached USD 9.98 billion in 2022, with a projected expansion at a compound annual growth rate of 16.9% from 2023 to 2030.
The uses of QR codes in the finance sector
Smooth payment process
QR codes have changed how payment works. People can now complete in-store or online payments quickly by scanning QR codes using their smartphones. This is faster than the old way of typing in credit card numbers and other required credentials. Businesses and banks now make use of QR code payment software, making transactions quicker and simpler for any mobile transaction.
Speed up loan applications
Financial institutions can use QR codes so borrowers no longer need to spend so much time on loan applications. Borrowers can just scan a QR code to reach the loan application page or download loan application forms instantly on their devices. This makes things better for customers and speeds up the loan approval process.
Boost customer security
In a time when digital payment scams are growing, QR codes provide a crucial safety layer and lower the risk of identity theft and fraud. QR codes with strong encryption can replace old-style and hard-to-remember passwords or PINs for ATM use and changing account details.
Quick mobile banking authentication
QR codes can make mobile banking safer and easier. People can use QR codes to prove they’re real users when they log in to their mobile banking apps. It makes signing in simple and adds extra security, making it harder for unauthorized people to get into their accounts.
Facilitate peer-to-peer money transfers
QR codes make sharing money between people much more convenient than before. With QR codes containing their account details, people can smoothly send money from one account to another. This eliminates the need for sharing complex account numbers and lowers the chance of mistakes during transfers.
Efficient financial data retrieval
QR codes help people quickly get their financial info and account statements. Banks can use PDF QR codes to store essential documents so customers or stakeholders can scan them to see their account details and transactions. With QR codes, confidential or important files such as bank statements are secure, and information is protected. It provides people instant access while safeguarding information.
Streamline banking procedures
QR codes make banking seamless. Financial firms can use them to simplify complex banking processes like setting up new accounts. Applicants can just scan the QR codes, redirecting them to the bank’s new accounts page to complete their application, making the process much simpler and quicker. These codes can also show clients easy-to-follow guides that will teach them various things, like how to apply for a loan or the things needed when opening a savings account.
ATM transaction automation
ATMs are starting to use QR codes for safe and easy transactions. This way, they can get their transaction done effortlessly and efficiently. Financial companies like Diebold Nixdorf and OCBC Bank also see the powerful potential of QR codes in transforming banking experiences. Diebold Nixdorf introduced its QR code-based ATM transaction. Users must scan the dynamic QR code on the ATM screen to confirm their location and complete their transactions.
Meanwhile, OCBC Bank allows users to withdraw from any OCBC ATM without cards and PINs. Users only need to use the OCBC app to scan the QR code on the ATM screen to complete their cash withdrawals.
QR codes: Smart technology for seamless banking processes
Financial institutions need secure, speedy, smart tools to earn the trust of their clients, and QR codes are the perfect candidate. They might look basic at first glance, but they’ve changed the game by making transactions quicker, boosting security, and adding convenience to finance. They’re not just for quick mobile payments—they’re transforming how we interact with banks. Even remote places can now easily access banking services.
Banks embracing smart tech like QR codes are showing their commitment to providing superior banking services, marking a shift from traditional banking. QR codes in banking are just getting started. With tech advancing, we can expect more ways to use them to achieve smarter, faster, and safer banking systems and processes.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
