QR Codes and Open APIs:

Partners Powering Payments Transformation

QR codes and Open application program interfaces (APIs) are two powerful forces behind the convergence of
payment types that’s currently underway. They’ve already enabled wider participation and acceptance, led to a
merging of infrastructure and fueled the development of new use cases.

Read on to see the radical shifts APIs and QR codes have brought to payments, and why all payment providers
must understand how to use them to drive new forms of competitive advantage.

QR Codes APIs
QR code payments are performed by scanning a QR Payment providers use APIs to share data, information
code from a mobile app. Funds are either “pushed” and services directly with others in the financial
from the consumer to the merchant or “pulled” by the ecosystem, including other payment providers, financial
merchant from the consumer. Many QR code-initiated institutions and third-party developers. This connectivity
payments still rely on card channels, but direct-from- enables the creation of new applications and services.
account payments are becoming more common.

QR Codes Key Benefits APIs

• Conduct a payment transaction without a physical • Enable constant innovation for competitive
payment terminal advantage and addition of new business value

• Support expanding mobile payment usage, • Can act as an intermediate layer in between apps
including P2P and micropayments (including those that read/create the QR code and
the bank’s system)
• Payment instrument agnostic for increased ubiquity
• Create value-added services that differentiate and
• Can eliminate card payment networks to reduce increase customer value
cost of processing a payment
• Can eliminate card payment networks to reduce
processing costs

How They’re
QR Codes Driving Convergence APIs

• Providers determine how to execute, clear and • Simplify collaboration between both non-financial
settle the payment without disrupting providers and those in the financial services
customer experience ecosystem for mutual benefit

• Initiate payment for card and non-card transactions • Eliminate need to go through card networks
with direct connectivity to others in
• Enable acceptance across variety of payment rails payments ecosystem

• Push payments into the bank’s back- • Facilitate mid-office or channel integration
office environment for issuers

• Standardize payment information for acceptance • Create a rich information layer

and processing

QR Codes Limitations APIs

• May not ease processing for providers with • May not be easily accessible on legacy or outdated
outdated platforms platforms that lack an API connectivity layer

• Level of data (merchant details, value of the • Currently no globally accepted standard
transaction, attributes of the card/account) that
travel with payment varies

• May not disrupt or change payment behavior in

markets with well-established card use

How They’re
QR Codes Being Used APIs

• Regions that strive to reduce cash and/or have • Converge domestic and cross-border payments
less card infrastructure have embraced QR acceptance across payment networks
code payments.
• Enable near real-time and instant payments in
°° 15 million+ small and micro merchants in corporate treasury
China use Alipay QR code payments.
• Power new innovations like in-car eWallets
°° 9 million+ member merchants use India’s
Paytm, a QR code-based platform. • Airlines and supermarkets in Europe are developing
open API payments initiated direct from account.
°° 27 payment schemes have adopted
Singapore Quick Response Code (SGQR) since • Facilitates compliance with Open Banking
it launched in September. China, Hong Kong, regulations eg. PSD2
Indonesia, South Korea and Taiwan have
similar initiatives.

°° Mastercard’s QR payment technology is fueling

adoption across Africa, with support from local
banks for merchant use.

• Early adopter restaurants, hotels and bars print QR

codes on receipts, allowing customers to pay and
leave when they want.

Better Together:
QR Codes and APIs
Often misperceived as competing or independent, APIs and QR codes are in fact synergistic
technologies in the payments ecosystem.

Providers whose platforms aren’t built for APIs and QR codes will find it difficult to align processes
with future changes in payments, and risk being unable to keep up with the continued convergence
these technologies will drive.

LET’S DISCUSS HOW FIS CAN PRIME YOUR PAYMENTS PLATFORM TO MAKE
PAYMENTS CONVERGENCE AN OPPORTUNITY THAT IMPROVES AND
FUTURE-PROOFS YOUR BUSINESS.

CALL: +44.(0).1923.471.850

EMAIL: getinfo@fisglobal.com

VISIT: FISGlobal.com/PaymentsOne