A move to the UK comes with a long list of things to learn, from figuring out how to get around to adjusting to how different the supermarket is—and getting up to speed on the different payment methods used in the UK is no exception.
If you’ve recently settled in the UK, you might have noticed QR codes at many payment points. But what exactly are they? And should you be using them? In this Remitly guide, we’ll give you all the information you need about QR code payments.
QR codes and digital payments
A QR code, short for ‘quick response code’, is a type of barcode that can store various types of information and can be read by a smartphone camera. You’ve likely seen one before—it’s a unique pattern of small black and white squares arranged within a larger square.
In the UK, QR codes are a popular payment method. That’s because they’re cashless and contactless, giving both merchants (sellers) and customers (buyers) a convenient and secure way to transact.
The benefits of QR code payments
Making a QR code payment is faster, more convenient, and more secure than some other payment methods. Let’s take a look at the top benefits of using a QR code for payments.
Cost effective
QR code payments can be a more cost-effective way to pay, especially compared to other digital payment methods.
Unlike card payments, QR code technology processes payments through mobile wallets or banking apps at little to no cost. This can make a big difference when you’ve just moved and are adjusting to the cost of living in the UK. It can help you to avoid unnecessary fees while still enjoying the convenience of digital payments.
Convenient and speedy
Since QR code transactions work with mobile wallets and banking apps, there’s no need to carry a physical card around. All you need is your smartphone in your pocket and you’ll be ready to pay wherever you see a QR code.
They’re also quicker than traditional payment methods. Instead of inserting a card, entering a PIN, or handling cash, you simply scan a code and complete the payment process in seconds. That means less time queuing to pay and more time exploring your new home.
Safe and secure
When you make a QR code payment, your transaction details are encrypted. Things like your bank account or credit card number are scrambled into a string of meaningless numbers to keep them hidden.
Plus, because they’re processed through banking apps and mobile wallets, QR code payments usually require authentication before they can be completed. This adds an additional layer of security to help keep your money safe.
Accessible
QR code payments make digital transactions more accessible to a wider range of people. Unlike contactless card payments, which require a bank-issued debit or credit card, QR codes work with mobile wallets and banking apps, allowing anyone with a smartphone to pay instantly.
They’re especially convenient when you’ve just moved to a new country like the UK. Rather than having to rush to open a UK bank account before you can buy anything, you can make a payment using the funds in your bank account back home or in a digital wallet. You’ll just need to make sure you’re using a payment app that’s available in the UK and supports QR payments.
How do digital QR codes work?
They might look complicated, but the way QR codes work is actually pretty simple. In this section, we’ll give you an overview of how QR codes work along with a step-by-step guide for using them.
The technical stuff
It’s easiest to think of a QR code as a digital barcode. The black and white squares that make up the code store information like payment details, website links, or other useful data.
There are two main types of QR codes: static and dynamic. A static QR code is fixed. It always directs you to the same information. For example, a restaurant menu QR code that always opens the same webpage.
Dynamic QR codes, on the other hand, are more flexible. Businesses can update the payment details behind the code without changing the QR image itself. This is useful for things like one-time payments or bills that need to be adjusted.
There are generally three steps in the QR code payment process:
- Scanning and decoding: You scan the QR code with your phone’s camera and it decodes the embedded information using optical recognition technology. This could be a payment request from a merchant or a link to a secure payment portal.
- Payment processing: Once decoded, your mobile banking app or digital wallet takes over. You’ll usually need to confirm the transaction using biometrics like your fingerprint or face ID, or using a PIN to push the payment for processing.
- Confirmation and reconciliation: After the payment is made, both you and the merchant will receive confirmation. The funds are transferred securely, and the transaction will be recorded in your payment history.
This process helps to ensure that your transactions are processed securely, without your bank or card details being exposed.
The step-by-step of making a QR code payment
Paying with a QR code is quick and simple. Whether you’re grabbing a coffee or paying for groceries, all it takes is a few taps on your phone.
Before you get started, you’ll want to ensure that your bank or payment provider supports QR code payments. Then, be sure to download the necessary mobile app and link your payment methods, like your debit card or digital wallet. Keep in mind that some apps may require you to authorise QR payments before you’re able to make them.
Once you’re set up, you’ll follow this process to make a payment through a QR code:
- Scan the QR code: Use your phone’s camera or the scanner within your app to scan the merchant’s QR code.
- Review payment details: When you’re redirected to the payment page, you’ll see the payment amount and recipient details. Double-check to make sure everything is correct.
- Confirm the payment: Approve the transaction using your preferred security method, like fingerprint, face ID, or a PIN.
When you’ve made the payment, both you and the merchant will be notified about whether it was successful.
Where can you make a QR code payment?
On any given day, you’re likely to come across QR code-based payment options more often than you think. They’re widely used across different industries in the UK, making it a seamless way to make payments whether you’re out and about or at home.
Picture this: It’s Friday morning in London. You get off the Tube—or park your car, if you’ve got your UK driving licence—and head to a café to get a coffee before work. You see a QR code at the counter, so instead of digging through your wallet, you scan the code with your phone, approve the payment, and get your day started.
At lunchtime, you meet a friend at a restaurant. Instead of waiting for the bill and handing over a card, you both scan a QR code on the receipt, split the total, and pay instantly from your phones.
Beyond everyday purchases, QR codes are also being used to streamline the way people send money across borders. Many remittance services now offer QR-based transfers. This makes the process quicker and easier, and it reduces the chance that you might make an error when inputting details like account numbers and sort codes when transferring money.
This is a game-changer when you’re sending money to family abroad, especially in countries where traditional banking access is limited. That’s because many digital wallets and mobile money services integrate QR payments to provide an easier way to receive international transfers.
A closer look at the safety features of QR code payments
Security is always a concern when it comes to digital payments. Fortunately, QR code payments are designed to be safe and reliable.
Security features of QR code payments
QR code payments come with built-in security measures that help protect your transactions and personal information. Unlike traditional card payments, where details can be skimmed or stolen, QR payments rely on encrypted data and secure processing.
Here are some key security features that make them a safe payment option:
- Encryption: Your payment details are encrypted, making sure that sensitive information like your bank account or card number isn’t exposed during a transaction.
- Tokenisation: Many QR code payment systems use “tokenisation”, replacing your actual payment details with a unique, one-time code to prevent fraud.
- Two-factor authentication (2FA): Most QR payment apps require you to confirm a payment using your fingerprint, face ID, or a PIN, before processing it.
- Cardless: Since you don’t need to hand over your card or enter details manually, there’s less risk of card skimming or data theft.
- Merchant verification: Many payment apps verify the recipient before processing the transaction, ensuring that you’re sending money to a legitimate business or person.
With these protections in place, QR codes help to minimise the potential risks that come with using cash and credit cards to make payments more secure.
Tips for using QR codes safely
Although QR code payments are generally quite secure, it’s worth following these guidelines to ensure your money and personal information stay safe:
- Only scan trusted QR codes: Avoid scanning codes from unknown sources. Fraudsters can create fake QR codes to steal information.
- Verify payment details before confirming: Always double-check the recipient’s name and payment amount before approving a transaction.
- Use secure payment apps: Stick to well-known banking apps and digital wallets that offer fraud protection and encryption.
- Keep your phone and apps updated: Regular updates help to protect your devices against security vulnerabilities, and keep your payment methods secure.
- Enable authentication features: Use fingerprint, face ID, or a PIN to prevent unauthorised transactions.
Considering how popular QR code payments are in the UK, understanding them can be a way to make your move feel much easier. Now that you know the benefits they bring and how to use them safely, you can take full advantage of them to manage your transactions with confidence.
Frequently asked questions
What is a QR code for digital payments?
A QR code is a type of digital payment that uses a series of coded black-and-white blocks to enable cashless, contactless transactions, both for in-store and e-commerce payments. When scanned with a smartphone, the QR code directs you to a payment platform where the transaction is processed by your device.
How do digital QR codes work?
First, ensure your bank or payment provider supports QR code payments, then download the necessary app (like Google Pay or PayPal) and link your payment methods. Some apps may require authorisation before you can use QR payments. To pay, scan the merchant’s QR code, review the payment details, and confirm with your security method (fingerprint, face ID, or PIN). Both you and the merchant will be notified when the payment is successful.
How do QR code and digital payment systems offer better security?
QR code payments enhance security by encrypting your transaction data so that it can’t be read if it’s intercepted by cybercriminals. These payments also usually require you to authenticate transactions using a fingerprint, face ID, or PIN, which adds an extra layer of protection.
