Many businesses continue to adopt cashless payments. Typically, cashless payments include credit cards. However, quick-response (QR) code payments—which allow customers to easily complete payments using smartphones—have become increasingly prevalent.

QR code payments are appealing because of the convenience they offer customers, allowing them to make payments without having to carry a wallet or cash. They also help businesses simplify the payment process and prevent lost sales.

In this article, we explain the basic mechanics of QR code payments, the different payment types, the size of the Japanese market, major service providers, and the benefits and considerations associated with implementing this technology.

Key takeaways

• Quick-response (QR) code payments—such as the widely known PayPay—allow customers to pay for goods and services using QR codes scanned by their smartphones.
  
• There are three sub-types of quick-response (QR) code payments: advance payments, immediate payments, and postpayments.
  
• Quick-response (QR) codes are scanned using either the user-scan model (i.e., store-display type) or the store-scan model (i.e., consumer-display type).
  
• Quick-response (QR) codes offer a number of benefits, but there are also several key considerations. Therefore, implementation must be well-planned.
  
• Stripe’s Payment Links have a no-code payment function that lets business owners generate quick-response (QR) codes without having to develop complex systems, and Portable Network Graphics (PNG) images of the codes can be downloaded or copied for use anywhere.
  

What are quick-response (QR) code payments?

QR code payments—which are one type of mobile payments—use QR codes to complete transactions. Users of this payment method don’t need to have their wallets with them. Instead, they can make payments at restaurants, convenience stores, and other establishments by using their smartphones. Due to their high level of convenience, QR codes have become widely used in Japan.

Size of the QR code payment market in Japan

As digital transformation in retail continues to advance, the adoption of cashless payments—including QR code payments—is important for improving customer convenience and preventing businesses from losing sales opportunities.

According to the Ministry of Economy, Trade and Industry, the proportion of cashless payments reached 58% in 2025. That is more than double the 22.5% figure recorded 10 years earlier. In particular, QR code payments have been gaining popularity rapidly since 2020 when compared to other cashless payment methods.

For example, while credit card payments are the most widely used payment method in Japan—and the total transaction volume has been increasing year by year—their share of total cashless payments (i.e., proportion within the cashless classification) has declined slightly from 86.8% in 2020 to 82.7% in 2025.

In contrast, the share of QR code payments has expanded significantly, rising from 3.7% in 2020 to 10.2% in 2025. Furthermore, data from the Fair Trade Commission shows that PayPay, which accounts for 54.8% of all QR code payments, has a major lead over other companies.

The size of the QR code payment market is expected to continue expanding, making it important for retailers to adopt this method.

How QR code payments work and types of payments

When a payment is made with a QR code, the amount is automatically deducted from a credit card or bank account that has been linked to the system in advance.

The timing of the payment processing is determined by the settings of the payment app, and can be broken down into three types: advance payments, immediate payments, and postpayments.

Advance payments

This can be used by loading money into the payment app in advance. For the advance or prepaid type, payments that exceed the charged balance cannot be made. This creates certain benefits for customers, such as the ability to easily avoid overspending and the ability to manage finances more effectively by only preloading funds.

Immediate payments

For this payment type, the amount owed is immediately debited from the customer’s bank account when the payment is completed. Because this payment type is limited to the amount available in the linked account, customers cannot make payments that exceed their balances. For the immediate or debit type, in addition to linking the app or bank account, some payment services also allow customers to link and use debit cards.

Postpayments

With the postpayment type, the payment is deducted from the customer’s bank account at a later date, and it can be used by linking a credit card to the payment app. This type of payment is convenient because there is no need to load or charge a balance in advance. It allows customers to make payments smoothly without worrying about the amount of money in the app.

Keep in mind that depending on the payment service or the international card brand, some debit type or postpayment type cards might not be eligible for registration to the app.

QR code scanning types

There are two ways that QR code payments are scanned.

Store-scan type

The store-scan method is a system where the store scans a QR code displayed on the customer’s smartphone screen.

Although there are initial costs associated with installing scanner terminals—since transaction amounts are automatically processed in conjunction with the point-of-sale (POS) system—manual input errors are virtually eliminated. These terminals are widely used in convenience stores and major supermarkets.

User-scan type

The user-scan method is a system in which shoppers use their smartphone cameras to scan QR codes that are generated and displayed by the business.

Because the store doesn’t need to install dedicated terminals, initial costs are low. Therefore, this system is adopted primarily by independent stores and small restaurants. On the other hand, because the customer has to enter the amount themselves, there is a risk of typos or other errors.

Main QR code payment services in Japan

The leading QR code payment services widely used in Japan are shown in the table below.

How Stripe enables central management of major payment services including PayPay

By using Stripe Payment Links, you can manage a variety of online payment methods on a single platform. It also offers standard support for major QR code payments in Japan, including PayPay.

Furthermore, features—such as no-code tools to automatically generate payment QR codes—allow you to efficiently build a payment environment that is refined for your business needs without having to develop complex systems in-house.

Costs for implementing QR code payments

When implementing QR code payments, there are three main types of costs: initial costs, transaction fees, and transfer fees. It is important to understand these various costs and estimate their impact on the company’s profitability.

Note that depending on the service or contract terms, the initial costs can be waived. Therefore, it is important to check the details in advance on the official website or through a customer service representative for the payment service provider the business plans to use.

Initial costs

The initial costs for implementing QR code payments vary depending on the code scanning method. Therefore, it is important to proceed with implementing a payment system only after deciding which method is best for the company. It is also important to consider the business’s operational structure, point-of-sale environment, and budget for implementation. Here are the costs for the two types of scanning methods:

• User-scan type: Because payments can be implemented simply by preparing stand-up POS displays or backing cards that have QR codes printed on them, there are usually no initial costs.
  
• Store-scan type: The store will have to pay costs for installing equipment—such as barcode scanners and POS systems—or for system upgrades.
  

Payment handling fees

With QR code payments, each transaction incurs a fee of a few percent. The exact fee rate varies depending on the payment processing service you use, but it is generally 2%–3.5% of the transaction amount.

Transfer fees

Depending on the payment service, when sales proceeds are deposited or transferred into the business’s account, transfer fees can be deducted.

However, in many cases, businesses can avoid transfer fees by using specific financial institutions that payment service providers partner with or recommend (e.g., PayPay Bank for PayPay) to receive the funds.

Benefits for businesses that implement QR code payments

Below, we introduce the benefits businesses can gain by implementing QR code payments.

Improve customer acquisition by supporting payment needs

Attracting customers who prefer to use QR code payments can help businesses acquire new customers and prevent lost sales opportunities. This can also further improve customer retention rates through alignment with point rewards programs and promotional campaigns.

Simplify register operations and reduce cash management work

Because QR code payments allow customers to pay simply by scanning QR codes, they don't need to take out cash or credit cards, enabling them to complete transactions quickly. This can reduce time at checkout and alleviate or eliminate long lines during busy times.

Another major benefit for stores is that it reduces the time and effort required to prepare change and minimizes accounting errors during the daily closing process.

Attract inbound tourists

By offering QR code payments, which are widely used overseas, businesses can create a payment environment that allows tourists visiting Japan to enjoy a comfortable shopping experience.

For example, if the business supports WeChat Pay, which is aimed at travelers from China, those tourists can pay using a method they’re familiar with from their home country. This can also help customers overcome hesitancy to buy due to limitations of their cash on hand, contributing to further growth in inbound spending.

Key points for QR code payments

While QR code payments can provide a variety of benefits, there are also some points to keep in mind before you offer them.

Manage the payout cycle

Unlike cash transactions, cashless payments—including QR code payments—do not provide immediately available proceeds.

Therefore, it is important to remember that it takes a certain amount of time to convert funds into cash. Therefore, businesses must manage payout cycles carefully. It’s important to manage cash flow in a planned and considered manner, taking into account costs such as payment handling fees, with a focus on cost-effectiveness.

Implement security measures

When implementing QR code payments, prioritizing customer safety needs to be a priority, and this can be achieved by having thorough security measures.

Because of sophisticated fraud activities by malicious third parties, creating strong security measures is a necessary challenge for all businesses involved in QR code payments. For example, fraudulent actors might replace in-store QR codes with counterfeit ones or display fake payment confirmation screens and pretend a payment has been made.

Check support status for required QR code payments

When implementing QR code payments and using a payment processing service, it is important to select the most suitable payment service provider. Verify that it supports a range of payment methods that align with the company’s customer base, business model, and operational needs.

In particular, if the business wants to implement multiple QR code payment methods—such as PayPay and Rakuten Pay—at the same time, the availability of a system that allows for centralized management needs to be a key factor in the decision.

How Stripe Payment Links can help

Stripe Payment Links is a no-code solution that allows you to quickly create and share secure payment pages online.

Payment Links can help you:

• Get paid faster: Share custom payment links with customers and accept one-time or recurring payments instantly, without invoicing or complex integrations.

• Improve conversion: Boost payment conversion rates with a mobile-optimized design and streamlined checkout experience.

• Save time: Easily create, customize, and share payment pages through the Stripe Dashboard—with minimal coding.

• Expand globally: Accept payments from customers worldwide, with Adaptive Pricing localizing prices for 135+ currencies and offering local payment methods that are ready to use.

• Access other Stripe products: Integrate Payment Links with other Stripe products—such as Stripe Billing, Stripe Radar, and Stripe Tax—to add more payment capabilities.

• Maintain control: Customize the look and feel of your payment pages to match your brand, and track all your payment activities in one place.

Learn more about how Payment Links makes it easy to accept online payments, or get started today.

FAQs about QR code payments