Today’s payment landscape offers users a wide array of alternatives to choose from. Among this variety of options, transactions employing NFC chips and QR codes have become particularly popular over the past few years. What’s more, as we navigate through 2024, we can expect the competition between these two contactless technologies to intensify even further.
In this guide, we uncover the key pros and cons of NFC and QR code payments and share predictions about their future. Keep reading for all the valuable insights!
This increasing prevalence of NFC technology is likely to encourage more business owners to accept mobile wallet transactions and turn to the Tap to Pay functionality. However, the adoption of such NFC-enabled payment methods also calls for adjustments to the chargeback process, which are likely to make disputes more challenging for retailers to win.
While this chargeback issue makes some merchants reluctant to hop on the NFC trend, many of them are forecast to give in under the pressure of losing a competitive advantage, as at least 57% of consumers who have tried this contactless payment type in 2020 reportedly continue using it post-pandemic.
Benefits of NFC-Enabled Transactions
What’s more, the increasing adoption of NFC payments is driven by the multiple benefits they offer, including:
All these factors make it evident why NFC payments have been seeing stable growth throughout the past years and continue to gather steam moving forward.
What Are the Drawbacks of NFC Technology?
Despite all their advantages, payments conducted via NFC chips also have their drawbacks, namely:
However, NFC technology continuously evolves, so we are likely to see improvements in these aspects in the near future.
In 2022, North America emerged as the dominant global QR code payment market, holding a substantial 39% share of the total revenue. However, in the upcoming years, the Asia-Pacific (APAC) region is expected to take the lead due to its accelerating smartphone adoption, robust mobile internet connectivity, and a culture that heavily favors mobile devices.
Notably, experts predict that the adoption rate of static QR codes will exceed that of their dynamic counterparts. This is mainly due to the fact that this payment method does not require any additional software, which makes it easy for small and medium-sized businesses to implement.
Pros of QR Code Transactions
Moreover, the increasing popularity of QR code payments is also the result of a variety of advantages they offer, including:
These positive aspects linked to QR codes make them the preferred payment method for many consumers and businesses across the globe.
Cons of QR Code Payments
While QR code payments come with plenty of advantages, they are also associated with a few setbacks, such as:
Yet, as technology continues to develop, QR codes are expected to overcome these challenges, providing an even more seamless and secure payment option for individuals and businesses.
Besides, given the dynamic nature of the payment landscape, predicting which of these methods will be dominant in 2024 and beyond remains a challenge. What is certain, however, is that both of them will continue improving and getting rapidly adopted in the foreseeable future.
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