QR codes are reshaping how Australians pay. From checking out at a café to checking out at a retail store without tapping a card, QR code payments are a useful alternative to traditional payment methods. Businesses are using them to cut transaction fees, speed up the process, and connect with mobile-first customers in new ways.

Below, we’ll explain what you need to know about QR code payments in Australia: why it’s growing, its comparison to other methods, and how businesses can integrate them into their payment systems.

What’s in this article?

• What are QR code payments, and how do they work?
  
• Why QR code payments are gaining popularity in Australia
  
• What industries benefit the most from QR code payments in Australia?
  
• How QR code payments compare to other methods in Australia
  
• How businesses can integrate QR code payments with existing systems
  
• How Stripe supports QR code payments in Australia
  

What are QR code payments, and how do they work?

This approach lets customers pay by scanning a quick-response (QR) code with their smartphone. That symbol, a grid of black-and-white squares, holds the payment details, such as a transaction ID and merchant account info. Capturing it pulls up a payment screen, typically a finalisation page with options to pay via a digital wallet, a mobile pay app, or a direct bank transfer.

Businesses generate QR codes in two ways:

• Static codes: These do not change and are typically a general link to the business’s checkout page.

• Dynamic codes: These are unique to each transaction and contain exact amounts.

Shoppers scan and approve the payment, and funds move instantly. These QR-based methods aren’t replacing tap-and-go, but they offer a budget-friendly alternative to card transactions and a convenient user experience for digital-first consumers and international customers.

Why QR code payments are gaining popularity in Australia

While the adoption of this QR approach in Australia lags behind that of other countries, such as China, its popularity is growing. Cost savings, convenience, and shifting consumer habits push more businesses to integrate QR payments into their checkout processes. Here’s what’s driving the momentum:

Changing consumer habits

Australians are among the world’s fastest adopters of contactless payments – by 2022, 95% of in-person card transactions were tap-and-go, according to the Reserve Bank of Australia. The pandemic made all contactless solutions increasingly popular, and scanning a QR code became more mainstream. About one-third of Australian consumers told the Reserve Bank in 2022 that they had heard of QR payments, and around 10% reported using it to make a purchase in the previous year.

Easy setup

QR codes don’t require new terminals or costly upgrades. Businesses can display them on printed menus, screens, receipts, as well as product packaging – customers simply scan and pay with their phones. QR codes provide a low-cost way for small businesses or pop-up shops to start accepting digital methods without investing in hardware.

Lower fees, higher margins

Credit card transactions come with fees. QR payments can be designed to bypass those networks, routing money directly from a shopper’s bank account to the business via their mobile banking app. Pharmacy retailer Chemist Warehouse, for instance, began rolling out this method to cut its annual $15 million expenditure on card fees. Not all QR code payments have low fees, but bank transfers initiated through QR codes can reduce the higher processing fees that come with other payment methods.

Faster checkouts

In restaurants and cafés, QR payments eliminate the wait for a card machine – diners can scan the code, split the bill if necessary, and settle it instantly. Businesses can link QR payments to loyalty programmes, discounts, and digital receipts, creating an opportunity for deeper customer engagement.

International appeal

These open the door to mobile-first, app-driven transactions, often appealing to younger shoppers and international visitors. Including options for QR payments via mobile apps such as Alipay and WeChat Pay can capture a lucrative market of tourists and expats in Australia.

Growing industry support and adoption

As the adoption of QR code payments accelerates, banks, fintech start-ups, and major retailers are investing in these solutions. In 2022, the Australian Payments Network (AusPayNet) introduced industry guidelines to ensure QR usage works consistently across platforms.

What industries benefit the most from QR code payments in Australia?

QR code payments generally aren’t adopted simultaneously across all industries. In Australia, they’re gaining the most traction in sectors where speed, convenience, and cost savings are important.

Hospitality

QR codes work well in pubs, cafés, and restaurants. Customers scan, place their order, and pay without waiting for a waiter to bring the bill or a card machine. Platforms such as Me&u and Payo allow patrons to split bills instantly without involving staff.

Less time spent handling transactions means faster table turnover and fewer mistakes. Customers control their checkout experience, which can lead to larger orders.

Retail and e-commerce

Retailers turn to QR code payments to cut costs and enhance the shopping journey. Major retailers such as Chemist Warehouse use this option to avoid card processing fees, and others are following suit. Codes on product tags can link to item details, customer reviews, or instant checkout to merge in-store and online shopping. Unlike tap-and-go payments, QR codes can automatically apply discounts, rewards, or instalment options at the point of sale.

International retailers in Australia, such as MUJI, now accept Alipay and WeChat Pay via QR codes to cater to Chinese tourists and international students. Providing familiar QR-based methods in high-tourism areas such as Sydney and Melbourne can help capture more sales.

In e-commerce, QR codes improve the transitions between physical and digital shopping experiences. Businesses include them on marketing materials, posters, and packaging to direct shoppers to an instant checkout page.

Professional services and billing

QR codes increase efficiency for professional services such as accounting firms, consultants, and business-to-business (B2B) service providers. Instead of requiring manual bank transfers, operators can generate these labels linked to pre-filled checkout pages. Clients scan and pay instantly, which can reduce late payments and errors from manual entry.

Events, entertainment, and other use cases

QR codes are well suited for fast-paced environments where speed and convenience matter.

• Concerts and festivals: Attendees scan to cover for food, drinks, and merchandise without waiting in long lines.

• Parking and transit: Some parking facilities in Australia now allow drivers to scan a code to pay for their spot, eliminating the need to use coins or download an app.

• Markets and small vendors: Food trucks, local artisans, and pop-up shops can accept QR payments without investing in a card terminal.

• Charities and fundraising: Non-profits and museums use these labels to make it easier for people to donate.

How QR code payments compare to other methods in Australia

Australia is an advanced transaction market, with widespread use of tap-and-go cards, digital wallets, and bank transfers. QR code payments aren’t replacing these methods but filling gaps. These include:

• Businesses wanting to reduce fees by bypassing card networks

• Customers wanting richer payment experiences (e.g., loyalty programmes, digital receipts, split payments)

• Bank transfers that need to be faster and more accessible

• Payments that need to work beyond NFC terminals (e.g., parking meters, invoices, print materials)

Here’s how these payment methods compare:

QR codes vs. contactless tap

Contactless cards are ubiquitous in Australia. Tap-and-go is faster, but QR codes have an advantage when businesses want lower fees and more integrated experiences. Unlike tap, they can bypass card networks by allowing direct bank transfers with lower expenses.

QR codes vs. digital wallets

Digital wallets (e.g., Apple Pay, Google Pay) are widely used in Australia – accounting for 35% of retail sales in 2023. They remain the easiest option for in-store payments, but QR codes are more versatile in environments without NFC terminals and can reduce operation costs when used for direct bank transfers.

QR codes can complement digital wallets rather than compete with them. Some trigger Apple Pay or Google Pay on a phone, making the transaction process similar to tapping. They also work where NFC terminals aren’t available – for example, on a printed invoice, parking meter, or website checkout.

QR codes vs. cash

Cash use is declining in Australia, with most businesses preferring online methods. QR code payments can function similarly to banknotes – they’re confirmed immediately, and there are zero interchange fees when settled with a bank transfer. They provide the cost benefits of cash without the handling risks, which makes them an attractive alternative for businesses looking to move away from it.

Unlike cash, QR payments create a digital transaction record, enhancing security. However, they require a smartphone and internet connection, which limits their use among unbanked or less tech-savvy consumers.

QR codes vs. bank transfers

QR payments can work alongside bank transfer methods such as PayID and PayTo to make bank transfers faster and easier for businesses and customers. Shoppers can scan a QR code and authorise a bank transfer with PayID or PayTo without manually entering account details.

QR codes vs. buy now, pay later

Buy now, pay later (BNPL) services such as Afterpay and Zip allow customers to split purchases into instalments. Some BNPL services support QR code–based payment. A scan can redirect shoppers to a checkout experience with financing options, similar to digital wallets and bank transfers.

How businesses can integrate QR code payments with existing systems

Adopting QR code payments is easier than ever, thanks to payment platforms with plug-and-play solutions. Businesses don’t need custom-built systems – just the right provider and a clear setup process. Here’s what to do:

Choose a payment provider

The first step is selecting a QR-enabled payments platform. Look for a provider that fits your operation size and supports in-person and online transactions. Stripe allows businesses of all sizes to create QR codes to share with customers on their websites, social media pages, or in-store.

Generate QR codes for payments

Once you’ve chosen a provider, generating a QR code is simple. Some systems let you create both static and dynamic labels. In brick-and-mortar stores, they can be displayed on a screen, receipt, or printed sign. In e-commerce, they can be added to checkout pages to let customers transition easily from desktop to mobile payment.

Integrate with your POS or website

Physical stores and restaurants must check if their point-of-sale (POS) software supports QR payments. Some modern systems now display QR codes or print them on receipts at checkout. If the POS doesn’t support this, publishing a “Scan to Pay” sign at the counter is a simple workaround.

Online businesses can display QR codes in the following ways:

• On invoices for one-click customer transactions

• At checkout, to let shoppers scan and pay via digital wallets such as Apple Pay or Google Pay

• On marketing materials to direct shoppers to product pages or special promotions

Your system must handle the backend so that QR payments are marked as completed, just like card transactions.

Protect against fraud

QR codes need basic security measures to prevent fraud like any payment method. Since physical QR codes can be tampered with, use digital displays when possible. Fraudulent actors have been known to place fake stickers over real ones. Regularly check printed QR codes to confirm that they haven’t been replaced, and work with a provider that offers encryption and fraud monitoring to keep transactions secure.

Train staff and guide customers

Not all customers are used to paying via QR codes, so simple instructions help. Train staff on how QR payments work and basic troubleshooting (e.g., if a phone won’t scan a code, check camera permissions). A small sign that says “Scan to Pay – No Card Needed” reassures those unfamiliar with QR transactions.

Link QR payments to your accounting system

Every payment needs to be trackable. Regardless of which payment provider you use, confirm that:

• Transactions contain clear references (e.g., invoice numbers, order IDs)

• QR payments sync with your accounting software for easy reconciliation

• Daily sales reports include QR transactions

How Stripe supports QR code payments in Australia

Stripe makes it straightforward for businesses to accept QR code payments without building custom systems. Whether for in-person, online, or international transactions, Stripe’s tools help businesses integrate QR methods. Here’s how:

Payment links with QR codes

Stripe Payment Links lets businesses create a checkout page for any product, service, or donation – no coding required. Businesses generate a QR code linked to a payment link and share it with customers in person or online. Shoppers scan it and complete their purchase on a secure Stripe-hosted checkout.

Global QR payments

QR payments also open doors to international customers. Stripe enables Australian businesses to accept common international payment methods such as Alipay (via e-commerce only) and WeChat Pay. As Australia’s payment landscape evolves, Stripe is well-positioned to support regional QR-based payment systems, such as Singapore’s PayNow (via e-commerce only). Stripe’s QR integration simplifies cross-border payments for businesses catering to tourists, international students, or global buyers.

Developer-friendly integration

Stripe’s application programming interfaces (APIs) and developer tools allow businesses to generate QR-based checkouts with minimal effort, providing a reliable way for businesses to accept QR code transactions.