What is the recognition rate and usage rate of QR code payment? Explanation of advantages and disadvantages

Recently, "◯◯ Pay" is often talked about, but it is classified into the genre of "QR code payment" or "bar code payment" in the type of cashless payment. The market size is still small compared to credit cards and e-commerce, but the number of users is increasing due to the government's cashless promotion business and large-scale campaigns of each company. In this column, we will explain the recognition rate and usage status of QR code payment based on the questionnaire conducted by our company, and the merits of each customer and store merchants.

What is QR code payment?

QR code payment, as the name implies, is "a means of making payments using a QR code." The QR code is also known as a "matrix type two-dimensional code" and was developed as a code that can read more information than a barcode with only vertical lines.
The payment method for QR code payment is the "user scan method" in which the store displays the QR code payment for reading and the customer reads it, and the customer displays the QR code on the dedicated application and the merchants reads and pays. It will be either "store scan method".
Regardless of which method is used, the customer pays using the balance charged from the credit card or bank account linked to the QR code payment application.

Recognition rate and usage status of each QR code payment

At our company, for the same 2,200 people, the recognition rate and usage of each QR code payment as of October 19 immediately after the start of the cashless return business by the government and as of February 2008, which is in the middle of the process. We conducted a questionnaire regarding the situation. I will explain the status of QR code payment that I saw by comparing this period.

The recognition rate of each QR code payment has increased

Q. Which of the following QR code payment services do you know? (n = 2,200; multiple answers)

When we surveyed the recognition rate of each QR code payment, we found an increase in the recognition rate of all the QR code payments surveyed this time. In "PayPay", which has the highest recognition rate as of October, it was already high at 75.0%, but as of February, it increased further to 80.5%. In addition, the QR code payment with the highest growth rate of the recognition rate was "au PAY", which showed a significant increase of 14.3% from 28.0% to 42.3%. It is expected that the recognition rate will continue to increase as each company's promotions and campaigns continue to take place.

Up to 13.6% increase in the percentage of people who have paid by QR code payment

Q. Please tell me the usage status of the following QR code payment. (n = 2,200; multiple answers)

Compared to October 2019, when the cashless return business started, in February 2008, the percentage actually used for payment increased as well as the recognition rate. “PayPay,” which had the highest usage rate, showed an increase rate of 13.6% from 35.6% to 49.2%. During this period, each company has also carried out campaigns, which may have helped increase the usage rate.

The number of non-users after installing the app is decreasing

Q. Please tell me the following QR code payment services that you have installed the app but have never used for payment. (n = 2,200; multiple answers)

Until October 2019, the QR code payment application was installed, but there were a certain number of people who did not use it for payment, but as of February, the percentage of people who did not use it decreased in almost all QR code payments. Was there. The reason why I installed it but did not use it was because there were no stores that I could use, so I didn't use it. I think I did.

Benefits of customers using QR code payment

We have introduced above that the number of customers who are actually using it is increasing, but I will explain what kind of merits it has and how it is being used.

Easy payment is possible

QR code payment not only saves you the trouble of exchanging cash, but also eliminates the need to enter a credit card number or write a signature like Credit Card Payment, so it has the advantage of being able to make payments smoothly at stores. is.
In addition, you can use it like a household account book because the app keeps a record of when, where and what you bought.

Receive campaign preferential treatment and points

The QR code payment service may be more profitable for customers than paying with other payment methods because some companies have a return campaign or give their own points.
Also, in the cashless return business by the government mentioned above, you can receive a return of 2% to a maximum of 5% when you use it at the target store, so you will be more likely to feel the benefits during the period of the business.

Can also be used by young customers

Unlike credit cards, there is no screening for card issuance, so even customers under the age of 18 can open and use an account. In addition, with QR code payment, which allows you to charge the balance in a prepaid manner, you can prevent overuse by charging only the amount you use in advance, and you can use it with confidence.

Benefits of introducing QR code payment for store merchants

QR code payment has many merits for customers, but it also has merits for store merchants as well.

Acquire new customers

The major merit of introducing QR code payment for store merchants is that they can acquire new customers. As mentioned above, the number of customers using QR code payment is steadily increasing. In addition, there are customers who actively use QR code payments for campaigns and point redemption, so the possibility of acquiring such customers will increase.

Expansion of inbound business

QR code payment is also an attractive service for foreign tourists. The amount of foreign tourists visiting Japan (breaking news / estimates) announced by the Japan Tourism Agency in 2019 amounted to 4,811.3 billion yen, an increase of 6.5% from the previous year. Further increase is expected toward the 2020 Tokyo Olympics and Paralympics.
The largest number of foreign visitors to Japan are Chinese, who visit Japan more than 9 million a year, but China is a cashless advanced country. By supporting "Alipay" and "WeChat Pay", which are often used in China, the possibilities of inbound business will expand.

Reduced complexity of cash register operations

It is also a merit that you cannot overlook the fact that the operation at the time of payment becomes easier and the complexity of cash register operations is reduced. As mentioned above, the work that occurs in QR code payment is that either the customer or the store simply reads the QR code and enters the amount. In some cases, customers do not even have to come to the cash register, which will make cash register operations much easier. QR code payment at restaurants has a great advantage in terms of hygiene because it eliminates the need to handle cash.

Disadvantages of introducing QR code payment by store merchants

So far, we have introduced the advantages of customers and merchants but there are actually disadvantages when introducing them. It is important for merchants to understand the disadvantages as well, so I would like to introduce them here.

Installation / operation costs are high

As with other cashless payments, QR code payments also incur initial, monthly fees, and settlement fees. Since these costs differ depending on each QR code payment, it is important to compare the costs of each company at the time of introduction.

Time lag until payment of sales amount

The disadvantage of QR code payment by store merchants is that there is a time lag between the customer's payment and the actual payment of the sales amount. If you are a merchants always needs a certain amount of cash, you need to consider this point when introducing it.

Precautions for user scan method

QR code payment is a security measure that is sufficient for payment, but caution is required in the case of the "user scan method" in which the customer reads the QR code prepared by the store. Since around 2017, there have been cases in China where the QR code for payment posted on store POPs has been replaced with another one. However, this can be prevented by the "store scan method" in which the store reads the QR code displayed by the customer.

Features of major QR code payments

From here, we will briefly introduce the features of the major QR code payment services provided by each company.

PayPay

• ・QR code payment service provided by PayPay, a joint venture between Softbank and Yahoo!
• ・ The “10 billion yen campaign” immediately after the release became a hot topic, and the number of users exceeded 23 million (as of January 17, 2020)
• ・Regular point redemption campaigns are carried out, and the feature is that the usage rate of customers is high.

d payment

• ・QR code payment service provided by NTT DoCoMo
• ・Can be paid together with Docomo mobile usage charges
• ・D points are accumulated according to the payment amount, and the strength is that you can earn double points by using it together with the d point card.

LINE Pay

• ・Services provided by LINE
• ・Anyone who is a LINE user can use it from the LINE app.
• ・It also has a remittance function, and the split bill function using the LINE group is popular.
• ・The point redemption rate changes according to the usage record, and it is also possible to use the points as a balance.

Alipay

• ・Services provided by Alibaba in China
• ・Many Chinese people are using it, and we can expect inbound business by introducing it.
• ・Alipay accounts for more than 50% of the Chinese mobile payment market, making it the most popular payment method.

It is recommended to introduce multiple services at once for QR code payment

There are various QR code payments other than those introduced in this column, and customers are currently choosing according to their lifestyles. Therefore, it is not "OK to introduce this much" for store merchants but it is important to support as many services as possible.

However, it is not realistic to contract with each operating company and operate it. Therefore, we would like you to utilize a PSP. You can reduce the burden on busy merchants because they will take care of everything from installation to operation and payment.

[Mechanism of QR code payment when using a PSP]

Why SB Payment Service is chosen

We are currently handling QR code payments for 10 companies as a PSP (as of February 2008). We also offer a code payment service that allows you to make QR code payments from these 10 merchants on a single terminal, and you can choose from four types to suit your needs.

We have a lot of experience in introducing online payments and store payments, so we will make proposals according to the issues of the merchants. Please feel free to contact us when considering.

* "QR Code" is a registered trademark of Denso Wave Incorporated.
*Other company names, product/service names, and logos are trademarks or registered trademarks of their respective companies.