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Merchant QR code payment shows up most clearly in everyday moments at the counter. A customer enters the store to buy a product worth ₹500, skips paying cash and cards, scans the laminated QR code placed near the billing desk, enters the amount, and confirms the payment in a few seconds. Such scenarios are now a way of life across stores in the offline space due to the ease of ‘UPI-based scanning and paying.’
A single QR can directly connect with a commercial bank account or a Unified Payment Interface ID and work flawlessly with all applications. There’s no use of account or card information. From street vendors to brick-and-mortar retailers, QR has become an integral part of day-to-day transactions that feel authentic and seamless to customers and merchants alike.
As the digital payment space continues to influence various buying actions, understanding the way these two-digit-based transactions are executed so efficiently is more relevant to a business.
What is a Merchant QR Code?
Merchant QR codes are scannable codes linked to a business bank account or UPI ID, allowing customers to make digital payments by simply scanning and paying through their phone. The payment happens instantly, without cash, cards, or manual entry of account details, making the experience fast and secure at the point of sale.
These QR codes run on India’s UPI infrastructure, developed by National Payments Corporation of India (NPCI). A single QR code works across all major UPI platforms, removing friction for both merchants and customers and making QR payments a practical default for offline transactions.
Benefits of Accepting Payments via Merchant QR Codes
For most businesses, QR payments did not become popular because of technology, they stuck because they removed everyday friction at the counter. When payments become faster and simpler, everything else runs more smoothly. Here’s where merchant QR codes make a real difference.
- Faster Transactions and Reduced Wait Times
QR payments finish in seconds. Customers scan, enter the amount, confirm, and move on. There’s no waiting for card machines to connect, no cash counting, and no change handling. This speed matters most during rush hours, where even small delays stack up quickly.
- Minimal Cost with Zero Hardware Requirements
Unlike card terminals, QR payments do not need machines, cables, or maintenance contracts. A printed code does the job. With UPI transactions carrying minimal or zero charges, businesses avoid the recurring costs that usually come with card acceptance.
- Secure and Fully Contactless Payments
Each payment requires customer authorisation through a UPI PIN, with encrypted processing in the background. Since no card details are shared or swiped, exposure to theft or misuse drops sharply. The contactless flow adds another layer of comfort for both customers and staff.
- Superior Customer Convenience
Most customers already open a UPI app multiple times a day. QR codes fit naturally into that habit. There’s nothing new to learn, download, or explain, which removes hesitation at the point of payment and encourages repeat purchases.
- One QR, Every UPI App
A single merchant QR code enables UPI transactions across all leading UPI apps. It allows the customer to pay using his/her preferred UPI app, and the merchant does not have to worry about siding with a single payer.
Static vs Dynamic QR Codes: What’s the Real Difference?
There are two major kinds of merchant QR codes, each of which addresses specific needs for payments and the number of transactions. The comparison below explains how static and dynamic QR codes differ in everyday business use.
| Aspect | Static QR Code | Dynamic QR Code |
| Definition | Fixed code containing permanent payment details (UPI ID/VPA) | Generated uniquely for each transaction with specific details |
| Amount Entry | Customer manually enters the payment amount | Amount pre-encoded in QR, the customer just confirms |
| Code Reusability | Same code used repeatedly for all transactions | Unique code generated per transaction/order |
| Generation | Created once, used indefinitely | Generated on-the-fly for each payment request |
| Best Use Cases | In-person retail counters, cafe billing desks, and donation boxes | Online orders, delivery payments, and invoiced transactions |
| Tracking Capability | Basic; tracks overall payments to the account | Enhanced; each QR tied to a specific order/customer |
| Setup Complexity | Simple—print and display | Requires API integration or a dynamic generation system |
| Example | Boutique shop prints one QR at the register for all customers | Food delivery service prints a unique QR on each order receipt |
| Customization | Limited to static payment details | Can include order ID, customer name, and exact bill amount |
How to Get a Merchant QR Code for Your Business
The process for obtaining a merchant QR code involves simple steps that do not require extensive technological expertise or setup. The procedures for a business to start receiving QR payments are listed in the following sections.
Step 1: Choose a Payment Provider
Decide on the platform through which you’ll generate your QR code. Two primary options exist:
- Banks or UPI Apps: Many Indian banks and UPI applications offer merchant QR code generation. BHIM, Google Pay for Business, PhonePe for Business, Paytm for Business, and bank apps like HDFC SmartHub or SBI YONO Merchant enable UPI QR code creation for receiving payments.
- Payment Aggregators: Payment service providers like Cashfree Payments provide QR code payment solutions as part of comprehensive merchant services. These platforms offer integrated solutions with online payment gateways, dashboards, automated settlements, and advanced features.
Step 2: Register and Complete KYC
Once you select a provider, register your business account by providing:
- Business name, address, phone, and email
- Bank account where you want to receive payments
- KYC (Know Your Customer) verification documents: business PAN, proprietor ID proof, bank account proof
Step 3: Link Your Bank Account
Ensure your bank account links properly to the QR code system. Banking app registrations typically link accounts by default. Third-party payment aggregators like Cashfree require bank account details during signup for settlement processing. This linkage ensures customer payments via QR codes credit to the correct business account, usually instantly or via T+1 settlement depending on provider terms.
Step 4: Generate Your QR Code
Navigate to the “Generate QR code” option in your provider’s app or dashboard (labeled “My QR Code,” “Merchant QR,” or under UPI/QR sections). The process typically involves:
- Tapping “Show QR Code” or “Generate QR” button
- Downloading static QR images or accessing API details for dynamic QR generation
- Optionally customizing with business name or logo (supported by Google Pay and Paytm for Business apps)
Step 5: Display and Share for Customer Access
Put your merchant QR code into active use through multiple channels:
Physical Display
- Print QR codes on paper or stickers for point-of-sale display
- Place prominently at cash registers, entrances, or laminate on menus
- Ensure clear, non-pixelated printing using high-quality images
Digital Sharing
- Add to website checkout pages for online payments
- Include in invoice PDFs for easy customer payment
- Send via email or WhatsApp for payment requests
Customer Guidance
- Display a sign such as “Scan here to pay via UPI – Fast & Secure!”
- Trained employees to help customers through scanning process
- Configure payments to allow real-time alerting, e.g., through app notifications or SMS
Best Practices to Maximize QR Code Payment Success
QR payments work best when they are easy to spot, easy to use, and reliable at the counter. The ways below help businesses make the most from their merchant payment QR codes.
Keep QR Codes Accessible and Visible
Placement Strategy
- Position codes where customers can easily scan without awkwardness or obstructions
- Place at billing counters, multiple store points, or delivery packages
- Ensure adequate lighting for clear scanning in all conditions
Multiple Touchpoints
- Deploy QR codes at various customer interaction points
- Print on bills, receipts, packaging for delivery scenarios
- Create table tents or standees for restaurant and cafe settings
Ensure Reliable Internet Connectivity
Customer Connectivity
- QR payments require internet on customer smartphones for transaction completion
- Provide Wi-Fi access information in areas with poor cellular signal
- Maintain backup payment methods for connectivity failure scenarios
Business Confirmation Systems
- Keep your device or POS tablet connected to internet for payment confirmation notifications
- Set up multiple alert channels (app notifications, SMS) to avoid missing payment confirmations
- Test connectivity regularly during operating hours
Educate and Encourage Customer Adoption
Staff Training
- Train employees to proactively suggest “You can pay via UPI by scanning this code”
- Equip staff with simple explanations of the scanning and payment process
- Prepare responses to common customer questions about security and confirmation
Visual Instructions
- Display brief step-by-step instructions: “Open any UPI app and scan”
- Create multilingual guidance in regions with diverse customer bases
- Clarify that bank SMS/app notifications serve as official payment proof
Monitor Settlements and Reconciliation
Payment Tracking
- Regularly check bank accounts or merchant dashboards for payment reconciliation
- Review daily reports of QR transactions provided by most platforms
- Tally digital payments against physical sales for accurate accounting
Issue Resolution
- Monitor for failed or pending payments due to network issues
- Have protocols for handling payment disputes or retry requests
- Maintain customer service procedures for payment confirmation queries
Maintain QR Code Quality
Physical Maintenance
- Replace faded, distorted, or damaged printed QR codes promptly
- Protect outdoor QR displays from weather exposure with lamination
- Save QR code image files for easy reprinting when needed
Periodic Updates
- Verify QR code functionality monthly by test scanning
- Update codes if changing bank accounts or payment providers
- Generate fresh codes if switching from static to dynamic systems
Conclusion
Merchant QR codes are now an integral part of the regular activities of businesses due to their successful resolution of various challenges affecting the checkout processes of businesses. Payments are now done much quicker, the lines are much shorter, and customers do not walk away because they are cash or card scarce.
For businesses, the adoption of the technology helps to avoid equipment dependence, maintain costs that are easy to estimate, and also integrate well into the Indian payment landscape that is based on UPI. A wide range of businesses, from small to bigger enterprises, are now moving towards a model of “scan and pay,” a preference that reflects the way customers want to make payments in the year 2026.
As is necessary for the smooth flow, a reliable payment gateway works behind the scenes to take care of the transactions. Cashfree Payments helps business entities to have an easy time while managing UPI QR codes.
FAQs About Merchant QR Codes
What is a merchant QR payment?
Merchant QR payment allows businesses to receive digital payments through the display of a special QR code representing the merchant’s account. This payment method helps facilitate secure UPI payments and wallet transactions.
How to get a merchant UPI QR code?
A user needs to apply to a UPI-acquiring bank or payment system institution. Follow the KYC process, link your business account, and generate a QR code through a dashboard, app, and/or physical printout.
How to Make Payment to a Merchant with the use of QR Code?
Open a UPI-enabled app, enter the merchant’s QR code, verify the business details, enter the amount if required, and authorize the payment by means of your UPI PIN.
What’s the difference between merchant QR and normal QR code?
Merchant QR codes are linked to authenticated business accounts and facilitate authorized UPI transactions, whereas personal QR codes are not authenticated and might have usage/transaction limits.
How do you create the QR codes for merchants?
Build a Static/Dynamic QR using cashfree, a UPI acquiring app, after registering with them using your business information. This helps make digital payments in store as well as remotely.
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