A Quick Response code, commonly known as a QR code, is a type of digital code used to store or link to information. It’s like a label that can only be read by a machine. Businesses use QR codes for everything from tracking inventory to creating links people can scan to get more information about a product.

If that sounds a lot like the regular barcodes you’re used to seeing on the back of packaging, you’re right. But while the familiar UPC barcode can only be read horizontally, QR codes are read both horizontally and vertically. This is what allows a QR code to store more information than a regular barcode. But QR codes have other advantages compared to UPC barcodes.

Faster. Once you create a QR code, you can start taking payments immediately. Just print your unique QR code on paper, stickers, and signage, then display it where it’s easy for customers to scan.

More efficient. QR codes can hold much more data than UPC barcodes, making them ideal for complex processes like payments. And because of how a QR code stores information, you don’t have to create multiple codes for multiple transactions.

More secure. QR codes are difficult to alter or hack. For payments, a QR code directs a smartphone to the right payment account; after that, the payment between the buyer and seller is encrypted as normal.

More reliable. Because QR codes are read in multiple directions, they can still be recognized by a scanner, even if the QR code itself is damaged or partially torn.

How do QR codes work?
A QR code might look like a random mix of scribbles and black-and-white squares, but each slice contains several layers of information. When scanned with a compatible app, all of that information gets put together in the right order for the code to be read.

The square markings in the corners of a QR code tell an app the orientation of the code. This means customers can scan the code from any angle without worrying that it will be read backward. Alignment markings embedded in the code tell the app if the surface the code is printed on is flat or curved so the app can “straighten” out the code to read it correctly.

If you’ve noticed that QR codes have a space surrounding the square, you might be surprised to learn that space is considered part of the code. It’s called the quiet zone and it’s there to help the smartphone app recognize where the code stops.

How do QR code payments work?
Because a QR code can hold far more information than a barcode, it’s able to be encrypted and safely connect to payment processors like PayPal. Here’s how you can take a PayPal QR code payment, from start to finish.

1. Get your QR code:​ On the web, click Get Your QR Code, then, log in to your PayPal account, and download your QR code. You can also create your code using the PayPal Business app. We’ve provided step-by-step instructions, if you need help.

2. Display your QR code: Print your code and hang a copy wherever a customer can easily scan it during the checkout process, like on your register or counter.

3. Shopper scans the QR code: When your customer is ready to check out, they log in to the PayPal app, click Scan and Pay, and then Allow, which tells the app it can use the phone’s camera to scan the code. They hold their phone up to your QR code like they’re taking a picture and the PayPal app uses the camera to read the code and connect to your business’s PayPal account.

4. Receive your payment:​The customer then enters the amount they owe you and presses Send. Their payment appears in your PayPal account and the transaction is complete.