As contactless technologies continue to reshape commerce, QR codes have emerged as a flexible and efficient method for facilitating digital payments. Ubiquitous across industries, QR codes are not only being used in marketing and logistics but are also becoming
a reliable tool for transactions — particularly among small and medium-sized businesses (SMEs) seeking low-cost, easy-to-implement solutions.
How QR Code Payments Work
QR (Quick Response) codes can be scanned using a smartphone camera, redirecting the user to a secure payment page where a transaction can be authorised. Depending on the underlying infrastructure, QR codes can facilitate payments through debit or credit
cards, digital wallets, payment apps, or directly via open banking systems.
Most commonly, merchants display a QR code for customers to scan. These codes may be static (with fixed values), dynamic (allowing customers to enter amounts), or merchant-controlled (where the business sets the amount before generating the code). The method
requires no specialist hardware or technical training.
Adoption and Usage Trends
According to industry data, QR code payments now account for approximately
25% of global mobile transactions. Their popularity is particularly strong in regions where mobile-first behaviour is common, and where traditional card infrastructure may be limited or expensive to maintain.
In Europe, QR code payments are increasingly used in conjunction with open banking. With regulations such as PSD2 enabling secure bank-to-bank payments, QR codes have become a front-end interface for real-time, low-fee transactions.
Benefits for Businesses and Consumers
For consumers:
- Contactless and hygienic, with no physical interaction required
- Accessible without needing to carry cash or cards
- Faster checkouts and less friction at the point of sale
For businesses:
- Reduced costs, especially when bypassing card schemes
- Minimal setup (no terminals or POS systems required)
- Flexibility for in-person, online, and remote payments
- Enhanced security through built-in encryption and authentication protocols
Open Banking and QR Codes: A Strategic Pairing
Open banking adds a regulatory and technological foundation to QR payments. By allowing users to initiate payments directly from their bank accounts, merchants can benefit from near-instant settlement and a significant reduction in transaction fees. These
payments are also protected by strong customer authentication (SCA), enhancing security without adding friction.
Implementation Considerations
For SMEs and independent retailers, the appeal of QR code payments lies in their simplicity. Providers such as
Noda offer no-code dashboards where businesses can generate custom payment links and QR codes within seconds. Integration can be standalone or embedded into existing systems, allowing for maximum
flexibility.
While QR code payments are not without limitations — such as reliance on smartphones and occasional network issues — the advantages often outweigh the drawbacks for many use cases, especially when paired with open banking.
Final Thoughts
As consumers increasingly expect seamless, digital-first experiences, QR code payments provide a practical entry point for businesses looking to modernise their payment stack. They require minimal investment, offer high levels of security, and support a
broad range of customer preferences. When underpinned by open banking infrastructure, they represent a compelling solution for real-time, cost-effective payments across Europe and beyond.
