With speed and convenience being the order of the day in modern transactions, it’s no surprise that more businesses are using QR Codes for finance and banking services. Local and cross-border QR Codes not only offer a seamless way to transfer funds but can also reduce transaction processing times, helping businesses get paid faster.
These solutions have made their way to peer-to-peer (P2P) payment platforms like Paypal and Venmo, revolutionizing how friends split bills, facilitating cashless tipping, and streamlining freelancer invoicing. They cut through the friction of manually typing in payment details, promoting flexible and user-friendly money movement.
Here, we explore QR Codes in P2P money transfers, looking at how they work, how they can streamline transactions, and how to implement them effectively to maximize adoption.
Note: The brands and examples discussed below were found during our online research for this article.
Why QR Codes make P2P transfers easier and more efficient
P2P transfers via QR codes are quickly gaining traction as a mobile-first, user-initiated payment solution. QR Codes simplify these transfers by eliminating the need for manual data entry.
Instead of typing in recipients’ bank details, usernames, or wallet IDs, senders simply scan designated codes to complete transactions. This is not only faster and more convenient than manual entry but also reduces the risk of payment errors.
QR Code-powered P2P transfers are useful in a wide range of settings, including social repayments, small vendor or freelancer transactions, and nonprofit donations. They can also serve as convenient banking alternatives in underbanked regions, as they enable individuals and businesses to transfer funds without needing to visit conventional financial institutions.
How it works: QR codes in the P2P journey
QR Code payments are relatively straightforward, regardless of which P2P payment platform you use. Here’s a quick breakdown of how they work:
- The recipient generates a QR Code: You can use your mobile banking app (if QR Code functionality is available) or a dedicated QR Code generator like Bitly. To generate a Bitly Code, you’ll need the URL for your shareable payment link, which you can find in your payment service account. You can also pre-fill the payment details so the sender only has to add their payment information.
- The sender scans the code: This typically only requires a smart mobile device.
- The sender initiates payment: They add their payment details, confirm the amount to be paid, and complete the transaction.
QR Codes eliminate unnecessary data entry and contact, adding the convenience that modern consumers are increasingly looking for when choosing brands. In fact, 85% of Gen Z says they prefer contactless digital payments.
Example scenarios of P2P transfers with QR Codes
QR Code-powered P2P transfers are gaining popularity across sectors as more people realize their simplicity and convenience. Here are just a few examples of their many use cases.
Splitting bills and social repayments
QR Codes can streamline social repayments after group dinners, trips, or shared rides, as well as make it easier for roommates to share rent expenses. One person can cover the bill and prepare a P2P QR Code that allows other members to instantly repay their shares, eliminating the need for awkward calculations and manual data entry.
When linked to a centralized landing page instead of a single P2P service provider, these QR Codes can provide access to multiple mobile payment methods, like Apple Pay and Cash App. This way, everyone can choose the most convenient payment option for them.
With Bitly Pages as your mobile-friendly, no-code landing page builder, you can offer that added convenience by consolidating payment links for multiple mobile wallets into a single, personalized destination.
Freelancers and small businesses
Independent sellers, tradespeople, and freelance creators can use QR Codes to collect payment by sharing them in invoices, emails, and even in person. Clients just scan the code to pay—no dealing with checks, cash, in-person credit cards, or finicky point-of-sale (POS) tools. QR Codes can also link to crypto wallet details for seamless global P2P fund transfers.
When you use Bitly Codes, you don’t just make payments more convenient for your clients. You also get valuable insights through scan tracking. Bitly Analytics (available with paid plans) tracks every QR Code scan, which can inform your follow-ups.
For example, if your analytics show zero scans several days after sharing a payment QR Code, you could send an email to verify that the client received your invoice and make sure they don’t have any questions.
Nonprofits and community fund transfers
Nonprofits, religious institutions, and community organizations can use QR Codes to simplify P2P transfers for project donations, shared community funds, or reimbursement pools for healthcare and schools.
With these nifty solutions, all donors and well-wishers need to do is scan the code, add their account details, and confirm their amounts, making donations quick and easy to complete on the spot.
Just make sure you use Dynamic QR Codes like Bitly Codes. Because they’re editable, you can redirect them to point to new destinations whenever you start a new campaign (as long as you’re on a paid plan). This eliminates the need to reprint new codes and engagement assets, saving time and resources.
How businesses can implement QR code P2P payments
Businesses looking to implement QR-powered P2P flows have several setup options, but this relatively straightforward one is a great place to get started.
Generate QR Codes linked to wallet addresses or payment forms
The first step is to create your P2P transfer QR Codes. For this, you have two options: Static and Dynamic QR Codes. Static QR Codes cannot be changed after creation and are, therefore, only suitable for one-off transactions. Dynamic QR Codes, on the other hand, are editable and trackable, making them ideal for recurring transactions.
As mentioned, you can use your mobile wallet or P2P payment app to generate QR Codes (if available), or you can use a dedicated QR Code generator like Bitly. When you use Bitly’s QR Codes for your payment system, you can:
- Track scan activity to see when people engage with them.
- Add UTM parameters to embedded URLs for granular engagement insights (via Google Analytics).
- Redirect their destinations without printing new assets.
Embed QR codes across digital and physical touchpoints
Add your codes to the mediums your audience is already interacting with to encourage engagement. Think invoices, emails, receipts, your website, posters, and product packaging.
Pair each QR Code with a call to action (CTA) that clearly conveys its purpose to reduce confusion and potentially encourage scans. You could go with something like “Scan to Pay” when collecting payment for freelance gigs or “Send Your Share” for social repayments.
Track and optimize user behavior
Take advantage of Dynamic QR Codes’ trackability to monitor your target audience’s scan activity. Then you can optimize their design and placements based on the results.
Bitly Analytics provides real-time engagement-level data like total scans, scans by location, and scans by device to help you understand how your audience is engaging with your codes. Leverage this feature to A/B test and improve different QR Code elements.
For example, you can compare total scan data from email and receipt placements to understand which medium works best for your business. You could also use analytics to compare the effectiveness of different QR Code designs to see which one is most eye-catching and inviting.
Key security and compliance considerations
Despite being inherently safe (codes can’t be altered without access to the original creators’ accounts), P2P transfer QR Codes still need proper security controls, just like any payment solution. Here’s how to promote their safety and compliance.
Avoid QR fraud and spoofing
Businesses that use QR Codes for financial services are, unfortunately, sometimes impacted by bad actors. Scammers may tamper with physical QR Codes by placing fake ones over legitimate ones, or they could create fake donation links, embed them in QR Codes, and misrepresent them as legitimate in customer communications.
To protect your business and customers, make your QR Codes easy to recognize by using distinguishing features like your brand’s colors and logo. Also, use URL previews and teach customers how to tell if a link is safe through guides and videos. Ideally, they should check all embedded URLs for suspicious characters and confirm your brand’s domain to verify QR Code legitimacy.
Bitly can help protect your brand and customers from malicious links by allowing you to use custom domains in your links (available with paid plans) and giving you complete control over the appearance of your codes. We also have a robust trust and safety system at Bitly that dynamically monitors destination URLs for threats and blocks harmful links.
Enable secure user authentication
Link your codes to wallet pages that integrate multi-factor authentication (MFA) features, such as one-time passwords (OTPs), face ID, and fingerprint recognition, to prevent unauthorized access to mobile applications.
You could also explore tokenization—replacing bank account or wallet details on destination pages with randomly generated equivalents—to protect sensitive information in case your code falls into unauthorized hands.
Stay aligned with local and global regulations
While different from traditional payment systems, P2P QR transfers still have to stay within established legal frameworks. Your business needs to follow Know Your Customer (KYC) and Anti-Money Laundering (AML) rules and comply with region-specific privacy regulations, such as the General Data Protection Regulation (GDPR) in the E.U.
To promote seamless compliance, work with platforms that give you complete control over your compliance strategy, like Bitly.
How to maximize adoption of (and trust in) P2P transfers with QR Codes
The key to maximizing QR Code adoption in P2P transfers is to enhance user confidence in your codes and use clear communication. Use these tips to build trust and encourage your audience to scan.
Make QR Codes easy to find and scan
Make your codes stand out by taking advantage of QR Code customization features. With Bitly, you can customize your codes by using your brand’s colors in their design, adding your logo, and selecting custom patterns, corners, and more. You can also use QR Code frames with CTAs like “Scan to Send” or “Pay Instantly.”
But it’s also important to promote seamless QR Code scannability by:
- Using contrasting colors for your background and foreground.
- Maintaining a scannable QR Code size (Note: The recommended minimum QR code size is 2 cm by 2 cm).
- Ensuring sufficient quiet space around your codes.
Offer clear instructions for every payment
While most people are familiar with QR Codes, it’s still a good idea to provide directions for QR-based P2P transfers to reduce confusion.
Just a brief instruction, such as “Scan this code with your smartphone camera to pay [your brand],” with every payment request can streamline QR Code usage for audiences who may not be as familiar with the tech.
But you could also go a step further and create something like Zelle’s official QR Code guide, then proactively share it via channels like social media and email.
Test, monitor, and iterate
The truth is, you may not get every aspect of your P2P transfer QR Codes right the first time. A/B test different elements like placement, CTAs, and design to find the best combinations for your target audience and adjust your strategy accordingly.
Bitly Analytics can help by providing real-time scan data for every code you create. Through the user-friendly, centralized dashboard, you can assess how specific QR Code adjustments are impacting audience engagement, allowing for well-informed optimization decisions.
Powering smarter P2P payments with Bitly
QR Code-enabled peer-to-peer payments simplify and accelerate money movement by eliminating unnecessary data entry. They can also reduce error risks and eliminate friction in the payment process, making them worthwhile for individuals and businesses looking for a convenient, modern option.
With Bitly, you can easily power all your QR-Code-based P2P transfers in one place. Use Bitly Pages to create multi-option landing pages, embed branded Bitly Links to build trust, and generate custom QR Codes for flexible payment flows.
Plus, Bitly provides real-time scan analytics for timely follow-ups, more audience insights, and continuous optimization. And it’s all accessible via one intuitive dashboard. Just add your payment platform or digital wallet, and you’re all set!
Ready to modernize your P2P payments with QR Codes? Sign up for Bitly today!
