QSRs and QRs — a payment love story

Let's start with the obvious: QR codes are not new. They turned heads as the "new hot thing" in the early 2010s (around the days of the Palm Pilot and Blackberry — remember those?) before getting trampled by flashier tech as means of digital interaction for businesses.

Now though, QR codes are back better than ever, this time offering restaurant brands and other businesses some practical solutions in this increasingly touchless and remote world of business, where the codes can make payment easier, faster and more secure.
QR code history on the QT

First, a little background: QR stands for quick response. The coding was invented in Japan in the early 1990s, originally as a fast way for automakers to track cars as they moved through the assembly line. By the turn of the turn of the century, QR codes had expanded beyond manufacturing to retail, as well as business cards and billboards.

But whether it was the slow internet speeds of that time or the clunky scanning apps that were available, the technology failed to get a foothold among U.S. consumers. Then in 2017, Apple's iOS 11 made scanning QR codes capable via its standard camera app, while Google added a QR-scanning function to its Chrome search engine. Since then, QR codes have become a real potential time and money-saver for restaurant brands, among so many other businesses.

Making QR work for restaurant remote pay

QR technology is fun and trendy, but it's also extremely functional. Here are some reasons why:

• Information storage: Unlike barcodes, which use only horizontal information, QR codes can store information both horizontally and vertically. This two-dimension coding allows the codes to carry 100 times more information than traditional bar codes. That's ideal for purposes like restaurant remote payments. Just provide a code that's unique to each customer, then the QR code guides them immediately to their pay screen without requiring additional information.
• Speed: QR codes work quickly. When compared to the time it takes a customer to type in a URL, a password and additional security information, the choice becomes obvious. It's much easier to nudge customers toward electronic bill payment when it saves them so much time and hassle.
• Self-service: With COVID-19, we're seeing even larger adoption of QR codes due to the demand for remote payment options, especially for QSR brands. Just scan a code, read the menu on a phone and leave the germs alone. This push toward contactless and remote options presents an opportunity for businesses to streamline operations in ways that save time and reduce costs.
• Versatility: QR codes offer a plethora of opportunities to promote a restaurant's brand and improve the customer experience. Because QR codes consist of pixelated dots in a square matrix, they can be designed to incorporate a logo, color, message or background visual within the QR code. Codes can also deliver personalized payment experiences by showing the customer specific offers or ways to pay. And, of course, QR codes enhance the overall customer experience by letting patrons bypass the login and password screen for faster payment.
• Cost-efficiency: QR codes have a low cost of entry. Restaurant can purchase software to develop their own QR codes. Restaurant vendors can sometimes help with finding ways to generate codes..

Strategies to try

Given all these benefits, it makes sense to incorporate QR codes into your business plan, and especially into your payment strategies. Consider these strategies as possibilities:

• In-person touchless payment: Customers use their QR code scanner to read the code on menu items to pay through PayPal, Apple Wallet, Google Wallet or another electronic payment system. The code records automatically in the restaurant's inventory system, so it can easily track when supplies run low.
• Bill pay: Payment platforms generate individual QR codes that can be printed on paper statements, too. Customers then can pay their bill by scanning the code and choosing their preferred method of payment without having to log into their accounts.

Staying power

If you're wondering whether this technology, with its boom-and-bust history is now actually here to stay, we think the answer is yes. Not only are QR codes convenient, user-friendly, low cost and highly versatile, but they've become internationally ubiquitous. Consider these statistics:

• An estimated 11 million U.S. households will scan a QR code this year.
• Internationally, Southeast Asia is estimated to have scanned 15 million QR codes in 2020, while in Europe that number was 10.1 million, and in India, it was 8 million.
• Globally, mobile payments are projected to expand from $348 billion currently to $1.3 trillion by 2022.

Restaurants will need to move with these fast-growing trends to retain customers, expand into new markets and provide the fast and frictionless services customers want. Not to mention, it's always fun to see the underdog emerge as the leader, whether it's in horse racing, romantic comedies, TV talent shows or that undervalued stock you just couldn't resist.

After three decades on the sidelines, QR codes have finally emerged as a star player. Now make sure your business gets in the game.

Editor's Note:Another version of this story first appeared on sister site, ATM Marketplace, detailing QR codes uses in industries beyond foodservice.