Why not use NFC instead? You don't have to get your phone out and focus the camera, just hold it near the sensor. Works with wearables too like Apple Watch. NFC is just better.
The cost of adoption of payees is drastically lower with QR codes. Anyone who wants to receive payments just has to print out a 10c laminated QR code and they're on the network. This helped bootstrap the network and drive mass adoption.
Japan has had mobile NFC payments for over a decade now (back to the dumbphone era), and while it's heavily adopted by chain stores; smaller shops, restaurants and bars have never really adopted it due to the onerous setup, hardware, etc.
In the past 6 months or so (so basically overnight), a QR payment system (PayPay) has gotten massive adoption. They did this in two ways: a massive expensive signup campaign (20% cashback on all purchases deal), and the fact that any tiny back-alley bar can just install the app, link their bank account, and print out a QR code and now they're accepting payments.
The big advantage for QR is the quick and cheap deployment process.
Because cameras are cheap, ubiquitous, and pretty much just as fast.
If you rely on NFC, then on Apple devices you need Apple's blessing - and for financial transactions that means Apple Pay only, you don't get access to install applications in the secure element of the NFC chip in the phone.
eg my bank installed a virtual contactless Visa/Mastercard on my Android device that worked with everything long before Google/Android Pay was a thing, and without Google getting a slice of the transaction.
Transit systems can install their own virtual transit card on Android too.
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Why not use NFC instead? You don't have to get your phone out and focus the camera, just hold it near the sensor. Works with wearables too like Apple Watch. NFC is just better.
The cost of adoption of payees is drastically lower with QR codes. Anyone who wants to receive payments just has to print out a 10c laminated QR code and they're on the network. This helped bootstrap the network and drive mass adoption.
The terminals are not expensive, maybe in developing countries but merchants in the US can afford one easily.
The hot dog stand might not want it but they’re the rare case. In others NFC is just better in every way.
Japan has had mobile NFC payments for over a decade now (back to the dumbphone era), and while it's heavily adopted by chain stores; smaller shops, restaurants and bars have never really adopted it due to the onerous setup, hardware, etc.
In the past 6 months or so (so basically overnight), a QR payment system (PayPay) has gotten massive adoption. They did this in two ways: a massive expensive signup campaign (20% cashback on all purchases deal), and the fact that any tiny back-alley bar can just install the app, link their bank account, and print out a QR code and now they're accepting payments.
The big advantage for QR is the quick and cheap deployment process.
Ok but it’s a worse experience for the customer.
NFC is a superior technology regardless.
Because cameras are cheap, ubiquitous, and pretty much just as fast.
If you rely on NFC, then on Apple devices you need Apple's blessing - and for financial transactions that means Apple Pay only, you don't get access to install applications in the secure element of the NFC chip in the phone.
eg my bank installed a virtual contactless Visa/Mastercard on my Android device that worked with everything long before Google/Android Pay was a thing, and without Google getting a slice of the transaction. Transit systems can install their own virtual transit card on Android too.
Not just as fast, significantly slower. I double tap my watch and then move it near the payment terminal. Then I walk out.
With wechat I have to pull out my phone, unlock it, open the app, navigate to the payments part and open the camera, point it at the QR code.
What’s the relevance of Apple here? What’s to stop Android doing this with wearables? We’re taking about NFC not a particular brand of phone.