Did you know that about 80% of transactions today are cashless? Sweden might have been the first country to make the switch, but there has been an increase in the use of cashless payments around the world.
As a business owner, when you think of going cashless, your first thought is having a card swipe machine and with good reason. Almost every person you know who shops online or from a physical store own a credit or debit card. This means that not many people are walking around with cash in their pockets, so as a business, it makes sense to have cashless payment systems for your consumers.
However, times have changed in this digital era, and several other modes of cashless payments have been introduced. For example, QR code payment has become increasingly popular in the United States, with around 11 million households using this payment system in 2020. Other payment modes include mobile banking, digital payment machines or digital wallets, USSD and much more.
This article will help you compare QR code payments and card swipe machines to make an informed decision when choosing either for your business.
QR Code Payment
QR is short for Quick Response. It is a two-dimensional computer generated code with a pattern of black squares arranged in a square with a white background. They are a lot like bar codes, but they can store more information than their counterparts.
Digital gadgets such as smartphones and tablets can be used to scan QR codes, making them the go-to option for the modern consumer. You can forget your card but never your phone. There are several ways to scan a QR code. You can use a smartphone via the inbuilt camera or a mobile app that can scan
QR codes. You can also use app-to-app payments where both parties open the respective payment apps and scan the codes to complete the transaction.
The main benefits of using QR code payments are;
- Instant transactions
- You don’t require any infrastructure to set it up
- Higher level of security because every code is unique
- Minimal transaction errors
Card Swipe Machines
If you are keen on keeping up with the times, you probably already have a swipe machine online for your business. It is a machine that interacts electronically with a credit or debit card to transfer funds to your business account. If you own a small business, this is the first cashless payment system you should get.
Some businesses use a card machine together with a point of sale system, which can be a cash register like in a supermarket or a wireless mobile application attached to your phone or tablet.
The benefits of using a card system are similar to using a QR code system regarding enhanced security and faster payments. However, setting up a card machine for your business can be quite a daunting process, and you also need the device where you will swipe the different cards.
As a business, you should know that there are benefits of going cashless. The method you choose is what sets you apart from the competition. That said, the best way to decide which payment mode to go with is by studying your consumers’ habits.
Which cashless payment mode do most of your customers prefer? Are they shopping online or from a physical shop? The idea is to make it convenient and safe for the consumer as you strive to reach a broader market. You might even choose to go with both card machines and QR code payment systems. It ultimately depends on your business needs and your consumer.