View: It’s time for a single QR code for all the world’s payments
Denso Wave Inc. engineer who invented the two-dimensional barcode known as quick response, or QR, had never imagined that his system of labelling automotive parts would one day become a crucial pillar of monetary exchange.
That innovation has emerged as a preferred form of contactless transfer of value across Asia and Latin America, starting with China’s Alipay and WeChat 12 years ago. Small retailers who couldn’t afford costly credit-card terminals and high fees have been the biggest beneficiaries, as have consumers who have traditionally lacked access to bank accounts — Southeast Asia alone has 80 e-wallets used by more than 200 million people.
Now comes the next big thing: A move toward integrating disparate apps so that one day a single QR will work anywhere in the world.
Brazil’s Pix QR, India’s UPI QR, Indonesia’s QRIS, the Philippines’ QR Ph, and Singapore’s SGQR are all successful examples of the basic idea that a merchant shouldn’t have to display scores of barcodes to accept funds from different sources.
A single image ought to be compatible with every consumer app and wallet.
To that, add a second objective.
Foreign tourists must be able to whip out their smartphones and settle bills just like locals. National payment systems such as India’s are aggressively entering into agreements that will allow other countries to use them.
The major economies of the Association of Southeast Asian Nations — Indonesia, Malaysia, Singapore, Thailand, Vietnam and the Philippines — are linking their QRs for the 18 million intra-regional tourists who spend around $19 billion annually. Assuming that it is able to capture 15% to 20% of transactions, ASEAN QR would facilitate $4 billion in consumer expenditure and inspire the
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