Everyone despises having to wait in a long line to withdraw money from an ATM machine.
That combined with the risks of carrying cash means equals more consumers that prefer to use contactless payments and digital alternatives – such as QR codes to pay.
As of 2019, about 48% of Singaporeans aged between 25-34 years stated that they use QR codes as an e-payment method according to Statista.
The benefits aren’t just reserved for consumers!
Business owners throughout Asia find QR code payments a viable method for increased transparency into each transaction, have lower adoption (or processing fees) and are much easier to handle compared to cash.
QR codes and payments in Asia
The COVID-19 pandemic is majorly responsible for the acceleration of QR code payments in Asian countries.
The Bank of Thailand, for example, has authorised five commercial banks’ intentions to implement QR code payment transaction services.
This was recently tested at Bangkok’s famed Chatuchak market, with small merchants and service providers (such as taxis) accepting cashless payments using QR codes.
There’s also China’s payment infrastructure that is rapidly moving away from accepting debit and credit cards.
For small businesses and sole merchants (the majority of Asia’s business landscape) – the flexibility of QR codes is a major attraction.
Let’s take a look at “traditional” payments in Asia, for example.
Threats such as cash theft make cash payments risky. Whether it’s from someone within your company or from external forces (fraud or theft, etc.)
QR Code payments, on the other hand, are less sensitive to physical misfortunes and are more secure.
Using an app such as UOB mCollect POS opens up a world of flexibility as a business owner.
While cash payments need to be taken out from the till at the end of the day, calculated and then deposited at the end of the shift – having a digital payment processing app as an alternative reduces the risk of human error and other potential complications.
The seamless processing (and the fact that funds are instantly reflected into your UOB bank account) is the reason why many business owners are already choosing to include mCollect POS as a payment option.
Shift your attention to dynamic QR codes
The main difference between a dynamic and static QR code is that if you choose the dynamic QR, you would have had the flexibility to change data, which would have made this problem much easier to address.
All you must do is select the data on your end, and the QR code will send users to the appropriate page.
The mCollect POS app is an example of a simple digital payments app for small businesses in countries like Singapore and Malaysia. It just needs to be downloaded and linked to your business bank account.
When you need to collect a payment from a customer or client – the app generates a dynamic QR code that the customer can send with their own device.
From there, they can fulfil fees through PayNow or DuitNow (digital payments accepted nationwide in Singapore and Malaysia.
This eliminates a lot of employee involvement and ensures that all payment data are recorded as quickly as possible.
Annam Pte Ltd is one of our customers that has connected to the Enterpryze and UOB mCollect POS mobile app successfully. They were able to collect their payments using a QR code created by the app!
The best part? Since it’s created exclusively for UOB customers – you see instant funds in your bank account, instead of having funds from credit or debit cards only be processed in 3-5 business days.
3 benefits of accepting PayNow and DuitNow QR code payments
- Real-time payments
It allows you to accept payments from multiple customers at the same time.
Your customers will have to scan the QR code and send money to you via their smartphone.
Accordingly, they will find this payment process much more convenient since there’s no need to memorize long bank account details or rush to open the wallet to pay cash.
- Lower fees
Our UOB mCollect POS QR payments only charged a 0.15% transaction fee for each transaction.
In comparison, accepting credit and debit cards will incur a 1-3% processing fee per transaction.
Although it’s beneficial for businesses to accept a multitude of payments (even if they are card payments) having the ability to receive PayNow and DuitNow is an affordable alternative.
- Faster, more accurate record-keeping
QR codes enable two-way communication, allowing SMEs to gain an early insight into their customers purchasing habits.
This digitalized experience has a significant influence on the development of merchant-customer interactions.
For instance, those collecting payments for your business on the go can tie down a completed sale to each customer/client automatically and through the app.
There’s no added paperwork involved to transfer back to HQ; just real-time, updated data that is reflected instantly.