Contactless payments have become a standard option with most retailers in the last few years. What’s more, phones have essentially become an extra limb – one that people hardly ever leave home without. 

With this in mind, many businesses have added scan to pay and QR codes as an accessible and quick way to complete transactions. But do you know all the security and privacy benefits of scan to pay contactless payments? 

This guide will cover all the top advantages of using scan to pay QR codes for contactless payments. We’ll also get into some useful info about these methods and even how to set them up.

What is scan to pay and why should you use it?

Scan to pay is a simplistic, swift, and secure way of making payments by quickly scanning a QR code using your smartphone’s camera. Quick Response (QR) codes are a type of barcode that can be read by a variety of devices to access payment channels, Wi-Fi networks, and informational pages. 

As a form of contactless payment, scan to pay helps to reduce physical contact between the consumer and business employees. This made it hugely popular during the COVID-19 pandemic, as many people wanted to minimise touching possibly infected objects. Since then, many businesses have seen the benefits of using it.

This payment method also works exceptionally well with certain types of businesses, as it’s paperless, doesn’t require expensive POS systems, while making brands seem more future-forward.

How secure are scan to pay QR code payments?

Using scan to pay and QR codes is a secure method of retail payment. That’s because it does not require contact with the payment terminal – reducing the chances of skimming, tampering, or cloning. 

It also does not transmit sensitive data, like your card numbers and personal details, which helps to minimise risks like hacking, spoofing, or interception. 

That said, contactless payments are not without downsides. This technology is highly dependent on the customer’s smartphone security, which could be compromised by malware, theft, or phishing. Additionally, QR codes could be duplicated, manipulated, or replaced by fraudsters looking to take advantage of small businesses.

How to make scan to pay more secure for your business?

To make contactless payments more secure, there are several safety procedures you can put in place. These range from using custom QR codes to encrypting your business’s website. 

Here is what we recommend: 

• SSL-certify your website: A Secure Sockets Layer (SSL) certificate proves to your customers that their information is safe and shields them against hackers trying to create a fake site. This works in your best interest, as your consumers will feel secure using your online business.
• Use an SSO-enabled QR code generator: Utilising a generator with a single-sign-on (SSO) login will help to limit who is able to edit the code. In fact, only your business will be able to access the code management platform.
• Invest in a GDPR- and POPIA-compliant QR code generator: If your code generator complies with the General Data Protection Regulation (GDPR), it will protect your and your customer’s data from hackers or third parties. 
• Using custom QR codes: By making use of custom QR codes, not only can you help develop your brand’s image, but you can also safeguard your customer’s data. With unique code templates, it’s harder for scammers to modify them and exploit you.

Why are scan to pay and contactless payments beneficial for your customers?

We’ve gone over the benefits of why scan to pay and contactless payments are beneficial for the security of your business, but you might be asking how will my customer take this process? Well, besides the fact that contactless payment is such a commonly used transaction method today, it also has several crucial benefits for your consumer. 

• Faster payments: The typical paying process at restaurants, bars, and retailers can often be quite slow, especially at peak business hours. Using QR codes and scan to pay can save time for both the consumer and the merchant, as all they need to do is scan the code, pay for the service/product, and a notification pings when the transaction is successful.

• Safer transactions: Through dynamic data processes and encryption, contactless payments and scan to pay are more reliable and secure than older forms of payment. In addition, these methods are better equipped against fraud and scams.

•  Better flexibility and convenience: With scan to pay and contactless payment, the customer no longer has to worry if they’re carrying enough cash. They simply have to pay by phone, after authorising the payment through a pass code, biometric feature, or two-factor authentication. 

Privacy benefits of using scan to pay for contactless payments

Scan to pay can also be hugely advantageous for your business. However, consumers worry about their private data being compromised. That doesn’t have to be an issue, though, as contactless payments do have safeguards against that. Here are the top privacy benefits of using scan to pay for contactless payments. 

Scan to pay does not collect personal information

Let’s dispel the myth: using scan to pay with QR codes does not collect personally identifiable information like your name, address, and birthdate. Instead, it collects information specific to it, such as the number of times the code has been scanned, the operating systems of devices that have scanned the codes, and when the code was scanned. 

QR codes don’t live track you

Another mistruth about QR codes is that they can be used to track your location. Well, this is simply not true. When someone scans a QR code, the data is only collected there and then. And as mentioned in the previous point, it is only information about the QR code. 

QR code generators cannot obtain any of your personally identifiable information, and therefore, they cannot track where you are. The data is collected similarly to that of a photo – and will only be recorded at the moment when the code is scanned.

Drawbacks of using scan to pay for contactless payments

Sadly, scan to pay does not come without its disadvantages, so it wouldn’t be fair if this guide didn’t address them. From possible inaccessibility issues to less control for the merchant, here are the top drawbacks of using scan to pay.

Not accessible to everyone

The truth is that even today, in the Information Age, not everyone has smartphones. QR codes require smartphones with software advanced enough to scan them. Some users might be unfamiliar with scan to pay or simply prefer more widely-accepted options. 

Requires internet connection

QR codes also need Wi-Fi or mobile network access to work. If, as mentioned above, users have older smartphones or more rudimentary cell phones, they won’t be able to pay using the QR code. This can be where contactless cards come in handy – and it goes without saying that having multiple payment channels is best. 

User distrust and unfamiliarity

If your main customer base prefers paying with cash and cards, a big change like using QR codes might cause distrust in your business. This is especially true if they’re unfamiliar with scan to pay technology. 

This is definitely something to consider when setting up scan to pay at your business – and it could be a big risk. 

Frequently asked questions | Scan to pay for contactless payments

Even though this guide has given quite a thorough look into scan to pay methods, you may still be looking to answer some burning queries. We’ve collected some of the most commonly asked questions about scan to pay for contactless payments and responded to them below.

 

What scan to pay options are there in South Africa?

South African businesses and companies have taken scan to pay by storm in the last few years. Snapscan and Zapper were among the first mobile payment providers, but now all major banks offer scan to pay on their mobile apps. This includes Nedbank, FNB, Capitec, RMB, Standard Bank, and Absa. 

Moreover, even mobile network providers, like Vodacom and Telkom, offer scan to pay through the Vodapay and TelkomPay apps, respectively. Heck, even Engen has released the Engine1 app for paying via QR code, which they also use to market special offers at their 1Shops and to foster customer loyalty.

 

Why should your business go contactless? 

Besides just the convenience of using contactless systems for your business, it’s also becoming a way of modernising your business and attracting more people to your service.

Most contactless payments don’t have any additional processing fees, saving you extra money to spend on renovations, improving your products, and maximising customer experience. It also offers a more hygienic way of making payments, which helps both you and your customer.

 

Why should I use Netcash’s scan to pay process?

The answer to this is simple: efficiency. Not only is the setup simple and hassle-free, but Netcash also has a mobile app, billing options, and physical methods to receive payments with QR codes. Other benefits include:

• It’s cheaper and faster access to your merchant facility.
• The exact amount can be displayed on the customer’s payment app, without the customer having to type it in, which creates a more frictionless experience.
• Each QR code contains unique data, so other useful information can be recorded, like where the transaction is taking place.
• No need to deal with the onerous compliance requirements that come with storing cardholder data.
• Netcash also provides static QR code countertop stands as a backup in the case of power outages or systems being offline.
• Digital wallet users do not expose their cards to skimmers thereby eliminating fraud.

Additionally, Netcash’s QR codes work with all major banks and service providers in South Africa, such as: 

• Capitec
• Nedbank
• First National Bank (FNB)
• Rand Merchant Bank (RMB)
• Absa
• Standard Bank
• Telkom
• Vodacom
• Zapper
• QR Junction
• Spot

On the ground, working within the private security industry in South Africa is one riddled with danger and unplanned issues. Back at the office, these dangers take on an entirely new shape, and without the proper backup, things can get challenging.   

Private security companies in South Africa are no strangers to risk and, by the industry’s very nature, effective risk reporting and management. 

It’s a day-to-day dance with danger, but it’s a battle already lost if you’re not paying attention to what’s happening behind the scenes. Aside from physical threats, crucial elements of your security company management, from staying competitive to mastering staff administration, need the best care.    

With the landscape of private security booming in recent years, there’s no better time to get on top of things, and it all starts right here. 

 

Dealing with increasing competition 

The private security industry is a clear-cut dog-eat-dog world based on a high degree of competition. On the one side you’ll find countless fly-by-night security companies that offer a cheap but substandard service. The other side is dominated by larger private security companies, each going the extra mile to consolidate their positions. The genuine concern is how you successfully claim your part of the market share when there are so many other competitors.   

Being able to provide inventive solutions to customer needs not only ensures lasting customer retention but is also a significant part of acquisition. In contrast, your capability to do the above rests on your company’s ability to differentiate itself from the competition.    

With so many companies competing for a seat at the table, setting yourself apart based on service quality, technology offerings, and pricing remains a constant process.  

Ineffective staff management 

Your staff are an integral part of your business, and within the private security industry, a lot rests on ensuring that your personnel are happy, well-trained, well-equipped, and paid on time.    

All of these inherently come with their own challenges, but as one of the foundational blocks of your business, not effectively managing your staff can be disastrous. Should your staff become unhappy or disgruntled because of meagre wages or missed salary payments, they can quickly turn away from work, or be susceptible to bribery.   

This could lead to even more unwanted issues. Unfortunately, staff unrest can dent your brand reputation, especially if your cash flow doesn’t allow for a quick fix.    

It already doesn’t seem like a winning scenario, and if you consider that it all starts within the administration of your company, it becomes a bit more bleak. On the other hand, straightforward fixes do exist, one of which is an automated payroll system.  

 Should your employees have different banks with different payment clearing times, you could face growing mistrust. Integrating your payroll system with a salary payment solution ensures you can simultaneously pay everyone at the same time. 

Succeeding in the private security industry | Wrapped up 

Going head-to-head with these challenges requires security companies like yours to adopt a strategic and adaptive approach. Your arsenal must include dedication to innovation, customer-centricity, and compliance, ensuring success.   

There’s no denying that to succeed within this dynamic and competitive landscape, you need the best backup available.    

Backed by over 20 years of experience, more than 500 security businesses trust Netcash to get the job done. Get in touch today to take full advantage of industry-leading payment solutions, top-notch data security, and forward-thinking integrations.