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What are dynamic QR codes?

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It’s truly amazing to witness the evolution of India’s payment system over time. There is a shift as more and more individuals are embracing payment methods like e-wallets, moving away from the traditional wallet approach. The Unified Payments Interface (UPI) has emerged as the payment option, with transactions totalling Rs. 83.45 lakh crore in FY 2022.

Given the situation, it’s understandable that people are prioritising personal hygiene. This is why contactless payment methods like QR codes, UPI and SMS pay are gaining popularity. Among these options, QR codes stand out for their convenience and efficiency, simplifying payments at counters and checkouts effortlessly. It’s truly inspiring to witness how technology can contribute to our safety and make our lives more convenient. Digital payments will continue revolutionising the payment landscape within India and beyond.

What are QR code payments  – modern-day barcodes

QR code payments involve using a black-and-white pattern scanned through smartphones to carry out an activity. These codes can be used to take the user to a website, make a call, and even make payments. In the payment ecosystem, QR codes help users access merchant details, including the merchant name and bank account, which allows them to make online payments. Currently, there are two types of QR codes – static and dynamic. A static payment QR code contains a merchant’s bank details, while an active QR code changes with each transaction, giving merchants complete control over the amount receivable. 

Benefits of Dynamic QR Payment System

Here are some reasons why businesses are increasingly adopting dynamic QR codes for their payment processes:

Evidence of Completed Payment Guarantee

Dynamic QR code payment system offers many benefits, including the assurance of payment completion. With this system, merchants receive payment confirmation on the next step or screen after the QR code scan, eliminating the need to rely on the customer’s mobile phone screen for payment confirmation or an app to check for a specific transaction.

Provides Security and Peace of Mind

The growing need for social distancing and contactless experiences has made accepting payments via QR codes more necessary. The system reduces the physical contact between cashiers and customers. QR code payments support a low-touch consumer experience, ensuring a higher level of health safety.

Improved Payment Process for an Exceptional Experience

Customers no longer have to worry about entering an amount in their payment app or entering a PIN in the presence of a cashier. QR codes are more convenient than card payments, and both the merchant and the customer receive instant notifications after every transaction. Therefore, it offers a seamless and trouble-free payment experience. 

Streamlines Reconciliation Process by Eliminating Manual Tasks

Dynamic QR codes contain all essential payment details, making it easier to monitor and reconcile digital transactions. Unlike manual payment processing methods, dynamic QR codes are auto-generated from the bill summary, eliminating the need for manual input.

Lowers Expenses for Businesses

Merchants who offer UPI payments through dynamic QR codes save money as the Indian government levies zero Merchant Discount Rate (MDR) on UPI for debit cards. This leads to reduced business costs.

Applicable to All Types of Businesses

Dynamic QR codes are relevant to all businesses, including grocery, apparel, footwear, pharmacies, hospitals, government institutes, and the entertainment sector. With customers preferring digital payments, medical stores, hospital canteens, and departmental stores are integrating dynamic QR codes with their billing systems for a safe, quick, and seamless customer experience.

Stickerless Solution for Effortless Use 

Dynamic QR codes don’t require stickers, eliminating any sticker-related legibility issues that may cause payment delays or failures. This makes them easier to use and more reliable than static QR codes.

Dynamic QR Codes: A Payment Method Gaining Popularity in Various Industries

Dynamic QR codes are an emerging payment method across sectors and are mostly used in in-store, home delivery, and self-service business segments. They simplify the collection of payments, especially for eCommerce, logistics, grocery, and pharmacies.


QR codes allowing UPI payments have become increasingly popular, not just in restaurants or physical stores but almost everywhere. People use this payment method for donations, fees, and other services. During the pandemic, dynamic QR payments saw a rise in usage, and this trend will continue. As cash payments decrease and digitized transactions increase, it’s estimated that QR-based transactions in India could reach a staggering $125 billion by 2026. 

One can use CheqUPI seamlessly for any QR in India and do the payment.