QR code payment, also known as QR code-based payment, is a method of making financial transactions using a Quick Response (QR) code. A QR code is a two-dimensional barcode that can be scanned using a smartphone or a dedicated QR code reader.
In QR code payment systems, a unique Qr code is generated for each transaction, containing payment information such as the recipient’s account details and the transaction amount. To initiate payment, the payer scans the recipient’s QR code using a QR code scanner app on their smartphone or a built-in camera feature on some payment apps. The payment app then processes the scanned code and securely transfers the funds from the payer’s account to the recipient’s account.
What are the several benefits over traditional payment methods does
QR code payments offer convenience, security, cost-effectiveness, and accessibility. That’s why QR code payment systems have gained significant popularity.
A QR code payment linkage has launched between Singapore and Malaysia in the latest cross-border retail payments breakthrough in Southeast Asia.
The move will enable in-person payments through the scanning of physical QR (quick response) codes displayed by merchants, as well as online cross-border e-commerce transactions. An expansion to person-to-person (P2P) payments is planned later this year.
At the end of 2023 the central banks of Singapore and Malaysia have plans to launch in-person remittance services that enable cross-border transactions through the scanning of physical QR (quick response) codes displayed by merchants. The QR code from Singapore and Malaysia can be used interchangeably by visitors to either country, as well as their cross-border online transactions. And an expansion to person-to-person (P2P) payments is planned later this year.
While both systems are widely used in their respective countries, their target is to make it possible to send money in real time, by just using the phone number. The main plan of this is to have the QR code initiative to improve the cost and speed access and transparency of cross-border payments.
In order to take advantage of the scheme, the customers from different financial institutions like the DBS bank, OCBC bank and UOB. While the customers from Malaysia are AmBank Malaysia Bhd, Boost CIMB bank Bhd, Hong Leong Bank Bhd, and a lot more.