How PayNow QR Codes Can Enhance Your Business’s Transaction Process

In late 2019, I broached incorporating QR codes onto our name cards with a colleague. He dismissed the idea. Against the trend amongst user-friendly companies to incorporate QR on their name cards, he retorted that “most people don’t even know how to use QR codes”.

How The Pandemic Changed QR Codes

Covid-19 somehow gave QR codes a boost. They were everywhere for people to log every building they entered; shops, eateries and merchants rapidly adopted a cashless payment mechanism. Cashless payment rose partly to avoid exchanging physical notes and coins, thus risking spreading the virus. With physical banking access becoming limited, it reduces milk runs to the bank to keep track of the money business have collected for the day. PayNow QR and SGQR became commonplace.

Also, despite already having payment gateways that accepted credit and debit cards, digital merchants also started accepting payments using PayNow. Online adoption was driven by the reality that you no longer need to make payments by conveying credit card details or revealing financial account numbers to unfamiliar outsiders. The adoption of PayNow was further heightened by numerous reports of people losing their life savings through phishing and phone scammers.

QR Codes Susceptible to Scams?

While some sceptics would say that a QR code poses a security risk, where a malicious party may lead to a rogue website, PayNow QR codes can be scanned and validated by a mobile bank application. Banking applications would reject a malformed QR code. In addition, when verified, the apps would display the recipient’s name that matches the ID used in the QR code. The ID can be a phone number, national registration identity card (NRIC) number or the company’s Unique Entity Number (UEN). Most importantly, the bank does not transmit the monies until the Payee approves.

Benefits and Challenges

We all have gained from paying by scanning the QR codes. Transactions are completed faster. Payor no longer faces the hassle of manually keying in payee information and keying the right amount to be paid. The Payee benefits from reconciliation payment received to their invoices and shorter wait time for payment.

The challenge for many SMEs comes from including PayNow within their internal invoicing processes. Ideally, a robust system can already generate unique PayNow QR codes for each invoice and transaction. The process requires their finance or accounting system to trigger a system that generate the PayNow QR Codes for each customer. These unique codes can be sent to customers through all communication channels: Whatsapp, websites, and emails. In a holistic PayNow QR codes solution, customers no longer need to key in the amount, and appropriate references are also recorded. More sophisticated workflows that initiate a delivery or manufacturing process, can also be incorporated.

The good news is that it is a solution that we are currently offering as a package for your SME. Read about here to find out more, or drop us your contact so we can get back to you!