Static QR Code Vs Dynamic QR Code Payments: What’s the Difference?

Bhaskar Chatterjee, Ezetap Mobile Solutions

Merchants across the nation have acceded to the growing demand for a touchless shopping experience. QR-based payments are one of the most desired payment methods today as it facilitates payments in a fully contactless way, in line with the social distancing norms and allowing for faster checkouts, which is the need of the hour.

A QR code a.k.a. Quick Response code is a type of two-dimensional matrix barcode that can be scanned or read-only via a smartphone’s camera. Though it is similar to linear barcodes found on products, a QR code offers four major advantages:

1. It stores a large amount of data per unit area.

2. It can be scanned from a paper as well as a screen.

3. A smartphone’s camera can read it even if part of the code is damaged.

4. The data can be encrypted, and thus QR codes are high on safety.

Today, two highly secure and fast modes of QR code payments exist namely, Dynamic QR code payments and Static QR code payments.

Let’s understand these and know the differences:

Static QR vs Dynamic QR

Static QR codes as the name suggests are static in nature, (does not change) and is unique for every merchant. It contains the bank account details of the retailer. As a retailer, all you have to do is print the code and put it up at the billing counter.

Dynamic QR codes, on the other hand, are unique to every transaction, as they include both merchant details as well as specific transaction details. Thus while you have one static QR code for every merchant, you have a new dynamic QR code for every transaction.

Let’s get a broad understanding of their differences.

Differences between Static and Dynamic QR code

1. Requirements

Static QR codes can be printed and displayed through a paper, poster, business card, or website. Since dynamic QR codes need to be generated for each transaction, merchants must have a smart device with the respective software/ app that can generate the code for every new transaction.

2. Security

The data exchanged in both the types of QR codes are encrypted for utmost security. However, dynamic QR codes are a more secure option as the merchant has to generate a new code for every transaction and thus offers more control.

3. Assisted vs Unassisted

Since a static QR code is printed onto a paper and displayed at the counter, the process requires zero assistance from the shopkeeper/ cashier. The customer can self-scan, manually add the amount and go ahead with the payment. A dynamic QR code on the other hand, while more sophisticated, requires some assistance. Since it is transaction-specific, it has to be generated by the cashier/ delivery person at the point of sale, and shown to the customer, so that they can scan and pay.

4. User Experience

Static QR requires zero effort from the shopkeeper, but sometimes becomes inconvenient due to issues of manual errors on part of the customer, while adding the amount. Moreover, the customer has to spend a moderate amount of time as the process entails entering relevant payment details and authenticating the transaction. Dynamic QR codes offer enhanced user experience to customers by saving them the hassle of entering the amount and enabling faster and seamless checkout both for the customer and the shopkeeper. Also, unlike its static counterpart, this one is not affected by the lighting of the room because the codes are displayed on a backlit screen, making it easily readable for smartphone cameras.

5. Errors and Reconciliation

As the customer has to manually enter transaction details, there’s a higher chance of errors while entering the transaction amount. Due to the same, the reconciliation can be frustrating and inaccurate at times. The dynamic QR codes technology, instead, is integrated into the billing system, and the transaction data is directly pulled through this machine into the QR code, which eliminates all such errors.

Static and dynamic QR codes, both have their set of benefits. Depending on the nature of your business, budget, and requirements you can choose the one fitting your needs.

Since a static QR code can be presented in multiple formats, it is a versatile mode of payment acceptance. It can be displayed on social media sites, websites, billing counters, billboards, and more. Making it best for NGOs, who receive donations from countless resources and small businesses like kirana stores, who are not willing to invest in manpower at the moment.

Dynamic QR codes are best for stores standing for quality and superior customer experience. Big marts, branded stores with sophisticated technology softwares and high ticket transactions, have a larger need for Dynamic QR codes. In fact, the government has recently mandated for brands to equip their stores with Dynamic QR either on the bill or at the billing counter.

In case you would like help identifying the payment needs of your business, seek advice from our FinTech experts at Ezetap. Call us for a demo now!