Research shows that contactless mobile payments were expected to reach 1 billion globally by 2024. This represents a 60% growth since 2022. Scan and pay is a system that enables buyers to scan a QR code and easily make payments.
Scan to pay is rising in popularity, especially after the COVID-19 pandemic. In this day and age, the method has become a necessity. All important information regarding how scan and pay works is included in this article.
How does scan and pay ensure secure transactions for users?
Security of your funds has become increasingly important. Especially since cyber threats and digital theft have become prevalent. But, contactless payment via QR code is safe in this subject.
Here’s the answer to the question “Is scan and pay safe? If so, how?”:
- Tokenization- Thanks to tokenization, card numbers aren’t transmitted. Instead of card numbers, a unique code is transmitted. Tokenization prevents your business bank account from theft using this method.
- Encryption- Encryption means that when a payment is made, the information regarding that payment is encrypted from one end to another. This means that even if the data of your payment is somehow breached, there will be a decryption key necessary to read it.
- One-time or Dynamic QR codes- QR payment system, works by expiring that specific code after usage. Using this method protects your savings account since it is harder to copy the code.
All of the information mentioned above shows how secure scan and pay actually is. The technology behind the system is built for trust.
What encryption methods protect scan and pay payments?
Encryption is mandatory for safety regarding QR code payment. The system helps protect sensitive information like card numbers and account details.
Here’s how scan and pay payments are protected:
- End-to-end encryption (E2EE)- E2EE is an important encryption method because even if the data is somehow breached during the payment, it becomes useless without the decryption key.
- Transport Layer Security (TLS)- SSL protocol was replaced by TLS. It is a newer technology that generates more secure connections.
- EMV Cryptography- This encryption method protects fast payments by generating a unique code for each payment. To duplicate the code or reuse it becomes impossible since each one is unmatched.
These encryption methods protect you by building a safe ecosystem reinforced with the latest technology. Even if one layer is breached, other layers will step in and protect the online banking account.
Jetonbank uses all of the encryption methods reinforced with the latest technology. To learn more about our security policies, visit Jetonbank.
How does scan and pay reduce the risk of payment fraud?
Mobile scan and pay is safer than traditional payment methods. The reason for that is, traditional payment methods have potential risks, including card skimming and misuse of lost or stolen cards. The scan pay go system has fewer risks since there isn’t a physical card that is exposed.
Even if the phone used to make the payments is stolen, the thief needs the data to unlock the phone. Payment fraud becomes harder, especially if the stolen device requires biometric authentication to unlock it.
Another reason why the scan and pay system is safer is real-time transaction alerts. The notification will help catch suspicious activity instantly, thus protecting the business banking account.
Research shows that, because of the involvement of cryptograms and tokenization, since 2023, attacks regarding copied cards have been blocked at a rate of 99.9%.
So it can be reasonably concluded that the combination of encryption methods, hardware security, and enhanced technological methods reduced the risk of fraud significantly.
Can scan and pay be used without physical contact?
Yes, scan and pay is a system that was established in the first place to be contactless. It permits its users to make the payment without touching any surfaces or handing over physical cards. There are several technologies used to enable this.
- QR code scanning- Since the method uses a QR code scan and pay system is truly contactless. Payment is usually made by scanning a merchant’s unique QR code.
- NFC- Near field connection allows smartphones with NFC feature to make payments completely contactless.
- App-based scan and pay- The technology uses a scan and pay app to scan a barcode or a QR code. This allows users to make a payment without physical contact.
Although payment is made without physical contact, that doesn’t mean making the payment from a lot of distance or across the room. But it allows customers to eliminate physical touch.
The benefits of the method are countless. Better hygiene (especially important after the COVID-19 pandemic), less device damage, and faster checkout times are only some of them.
What devices support contactless scan and pay technology?
Contactless scan and pay technology is supported by a range of technological devices. These devices can be listed as follows:
- Smartphones: Most modern smartphones support NFC and QR code payments. B2C payments are mostly made using smartphones; additionally, the number of users is significantly increasing for B2B payments for business banking. But it is important to note the necessity of a digital wallet scan and pay app.
- Wearables or Smartwatches: Modern wearable devices like these mostly support NFC. Allowing fast payments and shorter checkout lines.
- Tablets- Certain tablets have the technology to scan QR codes and can act as NFC receivers to receive a payment. It is important to remember that these devices are usually used in food delivery services and mobile commerce setups. So they are not very common.
To easily use the scan and pay app for your international payments and other ones you need: NFC or a camera, and for some systems, internet access is mandatory. But keep in mind that scan and pay technology is quite flexible.
Whether you have a smartphone or a wearable, most of the customers already carry a device that supports the payment method. With its banking expertise and enhanced technology it uses, Jetonbank is a leading financial institution.
To learn all about our policies and easily become a customer who makes faster payments using the scan and pay technology, visit our website!
How does scan and pay improve transaction speed in retail?
It is a widely known fact that the scan pay go system is a faster alternative to traditional payment methods.
There are a few factors that contribute to speed. Here’s a breakdown of said reasons:
- Faster Workflow- Traditional payment methods include PIN entries and physical card swiping. However, scan and pay is made via NFC or contactless payment via QR code. This causes payment to be sometimes even made within 10 seconds.
- Mobile Checkout Options- Mobile checkouts that are supported by the scan and pay system cause fewer queues, thus improving the speed in retail.
- Per-Item Processing Time- Manual entries made by the staff cause queues to be longer. Scan and pay system, however, can even cut this process time to 3 seconds, causing faster checkout times.
Speed is a major concern for our modern world and its necessities; however, the technology behind the scan to pay system allows shorter queues, faster checkout times, and less staff work. The system allows both customers and businesses to save time; therefore, it is commonly used.
What are the convenience benefits of using scan and pay for customers?
Finishing all the shopping and leaving instantly via the QR payment system without waiting in any lines is surely the best convenience of the said technology.
Here are the key benefits of mobile scan and pay:
- Flexibility Concerning Checkout Time- Without the need for staff, customers can easily scan the items of their choosing and leave immediately.
- Easily Gained Product Insight- Customers in the store can easily receive the information necessary regarding the product of their choosing.
- Fewer Errors During the Payment- Scanning the items will lessen errors that occur during payments. Double charges and mispriced items are an example of this situation. Additionally, the miscommunication caused by the busy staff will be less.
- Better Hygiene- Especially after the COVID-19 pandemic, hygiene has great importance. Since QR code payment is done without physical touch, better hygiene is easier to achieve.
When it comes to economic decisions, customers are severely affected by convenience. Using a QR code scan and pay system is always more hygienic, faster, and beneficial than traditional payment systems.
How do businesses implement scan and pay to offer contactless payments?
The scan and pay system is not just about retail anymore. It is even used between companies. Success of the said technology depends on matching it with existing technology in B2B payments and B2C payments.
Choosing the right technology is the most important way to implement the system successfully. QR codes or NFC technology are the most common ways to support the system.
After that, integration with the right system has great importance. POS is commonly used in retail, meanwhile for business banking, ERP technology is used.
Secure scan and pay systems cause easier implementation. The security of the method stems from encryption, tokenization, and authentication.
With years of experience, implementing the scan and pay system is easier with Jetonbank. To learn more about our policies, visit www.jetonbank.com.
Is scan and pay safer than traditional card payments?
It is a widely known fact confirmed by financial experts scan to pay is a safer system than traditional payment methods. Here’s the answer to the question ‘Is scan and pay safe?’:
- Built-in Technology that Secures The Payment- Each transaction to make the payment uses a dynamic code. Said codes protect the payments and the business banking account from cloning attacks.
- Physical Attacks Are Reduced- Especially used for international payments, the system doesn’t expose physical card data. This reduces the risk of physical or digital skimming.
- Monitoring Fraud- Financial institutions that provide the digital wallet scan and pay method allow customers to get real-time alerts for suspicious activity. So if the user sees something off about their online banking account, they can act quickly and prevent the unwanted outcomes.
It is safe to say that scan and pay is safer than traditional card payments. It can be used safely even for B2B payments that include a business bank account. To learn all about our security policies and structures, visit our website.
How do mobile wallets integrate with scan and pay systems?
Mobile wallets and scan-and-pay systems can’t be taught separately. To make the payment, a digital wallet that is used on the mobile phone, and the merchant’s system uses a token and exchange the payment. The wallet never transmits your actual card info, making the payment safer.
There are two QR payment methods: MPM (Merchant-Presented Mode) and CPM (Customer-Presented Mode). MPM allows customers to scan the merchant’s code and make the payment. While CPM allows the digital wallet to generate a code that the cashier scans.
On the other side, the merchant’s system is linked to the POS or payment gateway. The second the transaction is made system belonging to that business processes the payment like a manual payment were made.
Additionally, the scan and pay app serves as a digital wallet. The apps use security features like biometric login, two-factor authentication, and a fraud monitoring system, making the whole transaction safer and easier to integrate.
Merchants also benefit from these apps since they allow shorter queues caused by faster checkouts, integration with POS systems, and reduced cash handling. However, the apps come with certain challenges.
Customers may have a hard time adopting the technology, and compatibility issues caused by the smartphone are some of those challenges. However, the usage of these apps worldwide is becoming common quickly.
The technology used while integrating mobile wallets and scan-and-pay systems is evolving every day. But it is safe to say that the integration empowers both businesses and customers with its rich analytics and faster checkouts.
Jetonbank uses a technologically enforced scan and pay system, which allows B2B and B2C payments to be safer and faster. To quickly become a customer and make sure that your savings account is safe, visit our website now!
