The U.S. Faster Payments Council (FPC), an organisation focused on advancing safe, easy-to-use faster payments in the United States, has released a new whitepaper exploring the use of QR code adoption at the point-of-sale.
‘How QR Codes Address ‘the Last Mile’ Adoption of Faster Payments at the Point-of-Sale’ has been authored by the FPC QR Code Interface Work Group and is intended to provide an in-depth study into the pivotal role of QR codes in accelerating faster payments adoption, particularly at the point-of-sale.
The report offers a detailed analysis of QR code adoption, focusing on five critical factors:
- Oversight:A single QR code standard with robust oversight is essential for promoting interoperability and consumer confidence, facilitating QR code usage across different payment networks and devices.
- Payment Schemes Supported:QR codes should support various payment schemes, including open-loop and closed-loop, to provide consumers with greater choice and flexibility.
- Functionality:Beyond retail purchases, QR codes must support a range of use cases such as bill payments and person-to-person transfers, enhancing versatility and appeal.
- Usability:Ensuring QR codes are easy to use for both consumers and merchants is crucial for widespread adoption, including factors like size, placement, and scanning process.
- Security:QR code payments must be secure from fraud and other risks, requiring robust encryption, authentication methods, and oversight.
The report delves into international and U.S. payment solutions using QR codes, exploring key market drivers for implementation. It highlights successful QR code implementations from around the globe, identifying commonalities and best practices for QR code adoption. Furthermore, the report addresses challenges and opportunities for QR code adoption in the United States, delivering valuable insights for stakeholders.
Scott Green, Manager, Product Innovation at SHAZAM and FPC QR Code Interface Work Group Chair said: “What struck me about our work is that while we started with a relatively narrow question, we found that answering it meant we needed to explore several domains. During the process, we benefited from the diverse backgrounds of our work group team members, who came from many different perspectives, roles, and regions. While we identified challenges for the U.S. to achieve widespread adoption of QR code for payments, we were able to frame questions around them that will influence our continued work.”
FPC Executive Director Reed Luhtanen said: “QR codes represent a vital tool in bridging the gap to faster payments adoption at the point-of-sale. This new report underscores the importance of collaboration and standardization in advancing payment innovation, and provides essential guidance for all participants in the payments ecosystem.”
See the full report
