How QR Code Payments Work
A QR (Quick Response) code is a two-dimensional barcode that encodes data — in payment contexts, that data is a payment instruction tied to a merchant's account.
There are two main models:
Merchant-presented QR (MPM): The merchant displays a static or dynamic QR code — printed on a sign, shown on a screen, or attached to a POS terminal. The customer opens their mobile wallet app, scans the code, confirms the amount, and approves the payment. Funds are transferred in seconds.
Customer-presented QR (CPM): The customer opens their wallet app, which generates a one-time QR code. The merchant's scanner reads it and processes the payment on their end. This model is common in retail environments with existing barcode scanners.
Both approaches bypass card networks for the authorisation step, routing instead through the wallet provider's infrastructure and, for interoperable schemes, a central clearing switch.
National QR Schemes Across Asia-Pacific
QR payments aren't a single global standard — they're largely governed by national interoperability schemes, each designed to let consumers pay across different wallet brands at any participating merchant:
- SGQR (Singapore): A unified QR label that combines multiple payment schemes — including PayNow, Nets, and others — into a single code. Merchants display one label; customers pay with whichever wallet they use. SGQR is managed by the Monetary Authority of Singapore.
- PromptPay (Thailand): The national QR payment scheme linked to Thai bank accounts and mobile numbers. Widely used for P2P transfers as well as merchant payments.
- DuitNow QR (Malaysia): The national real-time QR payment standard, operated by Payments Network Malaysia (PayNet), connecting bank accounts and e-wallets.
- QRIS (Indonesia): Indonesia's national QR code standard, mandated by Bank Indonesia, which unifies all domestic wallet and banking QR payments behind a single code format.
- PayNow (Singapore): A real-time fund transfer and QR payment service built on top of SGQR, linked directly to bank accounts or mobile numbers.
Cross-border interoperability is a growing trend: several ASEAN countries have begun linking their national QR systems, allowing consumers to pay across borders using their domestic wallet apps.
QR Payments vs. Card Payments: Key Differences
| QR Code Payments | Card Payments | |
|---|---|---|
| Hardware needed | None (MPM: just a printed/displayed code) | Card reader or NFC terminal |
| Customer device | Smartphone with a wallet app | Card (physical or digital) |
| Network routing | Wallet provider / national scheme | Visa, Mastercard, etc. |
| Settlement | Often near-real-time | Typically within a few business days |
| Fraud model | PIN/biometric on the wallet side | 3D Secure, CVV |
For merchants, QR codes can reduce hardware costs — a printed code has no ongoing equipment expense. The trade-off is that customers must have a compatible wallet app, which limits reach compared to card acceptance.
QR Code Payments at the Point of Sale
For merchants operating physical stores in Singapore, QR-code wallet acceptance is available through card payment terminals that support contactless and QR scanning alongside chip-and-PIN. ONE Solutions offers POS terminals in Singapore that accept card payments, NFC contactless, and QR-code wallets — you can find the full list of supported methods at the QR code payments product page.
If your customer base in Singapore uses QR-based mobile wallets, having QR acceptance at the counter means they never need to reach for a card.