FPC report explores QR code adoption for faster payments

Titled 'How QR Codes Address 'the Last Mile' Adoption of Faster Payments at the Point-of-Sale,' the report was authored by the FPC QR Code Interface Work Group, and it examines the role of QR codes in expediting faster payments adoption, particularly at point-of-sale locations. 

In the official press release, the Manager of Product Innovation at SHAZAM and Chair of the FPC QR Code Interface Work Group, emphasised the broad scope of the study, which involved exploring various domains to address challenges in QR code adoption for payments.

The primary factors that influence QR code adoption: 

The report outlines five key factors that are crucial for QR code adoption, namely 

• Oversight: a standardised QR code framework with effective oversight is deemed essential to ensure interoperability and consumer trust across different payment networks and devices. 
• Payment Schemes Supported: QR codes should accommodate various payment schemes, including open-loop and closed-loop systems, to offer consumers diverse payment options. 
• Functionality: in addition to retail transactions, QR codes should support a range of use cases such as bill payments and person-to-person transfers to enhance their versatility. 
• Usability: the ease of use for both consumers and merchants is vital for widespread QR code adoption, including considerations such as size, placement, and scanning process. 
• Security: QR code payments must prioritise security measures such as robust encryption and authentication methods to mitigate fraud risks. 

Officials from the QR Code Work Group, highlighted the collaborative effort within the FPC to gather feedback on the report and explore strategies to enhance QR code payments at point-of-sale. The report examines international and US QR code payment solutions, identifying market drivers and successful implementations worldwide. It also discusses challenges and opportunities for QR code adoption in the United States, offering insights for stakeholders. 

Following the report's release, the FPC reaffirmed its commitment to driving QR code adoption, aiming to address issues such as fragmented payment landscapes and the lack of a unified QR code standard. Moving forward, the FPC and its members will continue engaging industry stakeholders to accelerate QR code-based payment solutions.