QR Code Payment Systems: How They Work and Benefits
By Diljit Ramachandran · LinkedIn · /about
Published · TECHNOLOGY · Last updated · 3 min read
A QR code payment is a transfer started by scanning a QR code with a payment app on a smartphone. In India, paying at a shop counter often means scanning a printed code with a UPI app; According to India's Press Information Bureau (2025), UPI processed more than 20 billion transactions in August 2025. Cards still dominate checkout in Western markets.
What are QR code payments?
A QR code payment encodes a merchant identifier, account number or payment link that a payment app reads to move the funds. Unlike card payments, they need no terminal, only a code and a phone.
How do QR code payments work?
There are two models, which EMVCo's QR code specifications call merchant-presented and consumer-presented mode.
- Merchant-presented (MPM). The merchant displays a code. The customer scans it in their payment app, enters the amount and confirms. A dynamic merchant code has the amount pre-encoded.
- Customer-presented (CPM). The customer shows a code containing a tokenized representation of their account, and the merchant scans it with a POS terminal and charges the amount.
Which QR payment systems are used worldwide?
The main systems differ by country and by whether one code works across apps.
| System | Where | What to know |
|---|---|---|
| UPI | India | Run by NPCI and designed to be interoperable: a code from one UPI app (Google Pay, PhonePe, Paytm, BHIM) can be paid from another, so one printed code serves every customer. |
| WeChat Pay, Alipay | China | Each uses its own QR format, so merchants typically display a code for each. |
| Venmo, Cash App, PayPal | United States | Mostly person-to-person and small merchants; PayPal lets a business display a code customers scan with their phone's camera or the PayPal app. |
| PIX | Brazil | Instant payments run by the central bank. According to the Bank for International Settlements (March 2022), PIX signed up 67% of adults in little over a year after its November 2020 launch. |
| PromptPay, PayNow, QRIS, VietQR | Southeast Asia | According to Bank Indonesia, QRIS Cross-Border works with Thailand, Malaysia, Singapore and Japan. |
Singapore and India connected PayNow and UPI on 21 February 2023.
Are QR code payments secure?
Generally yes. The code carries routing information such as a merchant ID, not a PIN or password, and payment apps require a PIN, biometric or device unlock first.
The main risk is tampering: an attacker sticks their own code over the merchant's, and customers pay the attacker. The US Federal Trade Commission has warned about scammers covering up QR codes on parking meters with their own. Merchants should inspect codes and use tamper-evident stands; customers should check the verified name in their app. See our QR code security guide.
Why do businesses accept QR payments?
- No hardware cost. A printed code replaces a card terminal.
- Lower fees, often. Bank-transfer systems such as UPI and PIX skip the card network and are typically cheaper for merchants than card processing; check current rates.
- Faster settlement. UPI and PIX credit the merchant's account in real time.
Which countries use QR code payments the most?
QR payments are most established in China, through WeChat Pay and Alipay, and in India, through UPI. Thailand, Indonesia, Vietnam, Singapore and Brazil also run national QR schemes. Western markets rely mainly on contactless cards.
How do you create a payment QR code for your business?
Ask your payment provider or bank for a merchant QR code, or link a code to a hosted checkout page yourself.
- Payment provider. Download the code from the merchant dashboard.
- Bank. Request a merchant code linked to your business account.
- QR code generator. For a Stripe payment link, PayPal.me URL or other hosted checkout, create a dynamic QR code with QRCodeStack that points to it. You can change the destination without reprinting, and scan analytics count scans.
Print the code large enough to scan from where the customer stands, add "Scan to Pay" and your business name, and test it regularly. See also our business guide.
Create QR Codes for Your Payment Links
Generate dynamic QR codes that link to any payment page, with scan tracking built in.