{"id":39236,"date":"2023-04-14T03:30:46","date_gmt":"2023-04-14T07:30:46","guid":{"rendered":"https:\/\/www.kaspersky.com\/blog\/?post_type=emagazine&#038;p=39236"},"modified":"2023-10-20T05:36:48","modified_gmt":"2023-10-20T09:36:48","slug":"qr-codes-business-future","status":"publish","type":"emagazine","link":"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/qr-codes-business-future\/39236\/","title":{"rendered":"COVID-19 made QR codes huge, but what&#8217;s their future?"},"content":{"rendered":"<p>If you\u2019ve visited a restaurant or store recently, chances are you\u2019ve seen and used the ubiquitous small squares that make up a QR code. During the COVID-19 pandemic, the small squares that make up a QR code became ubiquitous. Our exposure to these codes was never higher, nor their value clearer.<\/p>\n<p>But how did we get here? Why are QR codes today\u2019s technology of choice for navigating our lives? Let\u2019s step back to Japan, 1994.<\/p>\n<h2>Where QR codes began<\/h2>\n<p>Automotive components manufacturer Denso Wave had a frustrating problem on their supply line. They were using bar codes on their components that workers had to scan for information they needed. But bar codes became limiting for the company because of the small amount of information each could hold.<\/p>\n<p>The company gave one of their young engineers, Hara Masahiro, the task of developing a solution. Bar codes are one-dimensional (read along one axis,) but Masahiro\u2019s creation was two-dimensional: Read horizontally and vertically. It increased the information held from just 20 characters to 7,000.<\/p>\n\t\t\t\t\t<div class=\"c-promo-post\">\n\t\t\t\t\t\t<div class=\"o-row\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"o-col-12@sm\">\n\t\t\t\t\t\t\t<article class=\"c-card c-card--link c-card--hor@xs c-card--small@xs\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"c-card__figure c-card__figure--small@xs c-card__figure--medium@sm\">\n\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/is-paper-dead\/47013\/\" class=\"c-card__figure-link\">\n\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/media.kasperskydaily.com\/wp-content\/uploads\/sites\/92\/2023\/01\/27101843\/345_is_paper_dead-500x500.png\" class=\"attachment-card-default size-card-default wp-post-image\" alt=\"paper dead shredder\" data-src=\"https:\/\/media.kasperskydaily.com\/wp-content\/uploads\/sites\/92\/2023\/01\/27101843\/345_is_paper_dead-500x500.png\" data-srcset=\"\" srcset=\"\">\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"c-card__body  \">\n\t\t\t\t\t\t\t\t\t<header class=\"c-card__header\">\n\t\t\t\t\t\t\t\t\t\t<p class=\"c-card__headline\">Related article<\/p>\n\t\t\t\t\t\t\t\t\t\t<h3 class=\"c-card__title \">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/is-paper-dead\/47013\/\" class=\"c-card__link\" target=\"_blank\" rel=\"noopener nofollow\">\n\t\t\t\t\t\t\t\t\t\t\t\t<span>Is paper dead?<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<svg class=\"o-icon o-svg-icon o-svg-right\"><use xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" xlink:href=\"https:\/\/www.kaspersky.com\/blog\/wp-content\/plugins\/kaspersky-emagazine\/assets\/sprite\/icons.svg#icon-arrow-long\"><\/use><\/svg>\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\t\t\t<\/header>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"c-card__desc \">\n\t\t\t\t\t\t\t\t\t\t\t<p>Smartphone apps take more transaction territory each year, so when will they replace paper and plastic cards?<\/p>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<footer class=\"c-card__footer\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"c-card__list\">\n\t\t\t\t\t\t\t\t\t\t\t<ul class=\"c-list-labels js-has-reading-time\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"c-list-labels__link\" href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/category\/data-and-privacy\/\" target=\"_blank\" rel=\"noopener nofollow\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span>Data and privacy<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><span class=\"js-reading-time\"><\/span> min read<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"u-hidden js-reading-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t\tFor retailers, predicting customers' future wants and needs is crucial \u2013 especially in this era of disrupted supply chains. I hope you won't recognize this story as something that might happen in your business, but it demonstrates how soon retailers of all sizes could find themselves in a new future.\r\n\r\nI bought a blouse recently from a traveling vintage clothes seller. Picture several racks of bright retro outfits set up under a caravan awning with a changing room crafted from tie-dyed blankets. Incense hangs in the air, as does the ringing of tiny bells attached to the seller's impossibly long hair, jingling as she wanders around after customers, straightening coat hangers.\r\n\r\nTo pay, I offer cash, but she instead presents me with a beautifully calligraphed sign showing her bank account details. Given the riskiness of this practice, I offer a moment of security education. She tells me she's in the habit of giving out her bank details because it means more sales, and keeping enough change around is hard when you're always on the road.\r\n\r\nEven those on the fringes are moving towards electronic payment for its convenience and customer preference, albeit sometimes not in ideal ways. When it comes to meeting customer expectations in how your transactions happen, are you ready for a future where paper money, receipts, plastic cards are a thing of the past? Could your retail business work in a world where all money is changing hands by smartphone?\r\n\r\nAmong Kaspersky researchers' privacy prediction for 2023 is that we'll keep seeing smartphones and other smart devices encroaching on activities once dominated by paper and plastic cards. A future where all we'll need is a smartphone seems close when we're paying by near-field communication (NFC) like Apple or Samsung Pay or QR code like Swish, or using apps to show COVID-19 testing and vaccination status.\r\n\r\n\r\n\r\nWhat does this mean for paper and plastic transactions? And what privacy and security issues should business consider when it comes to doing it all by smartphone?\r\nEnvironmental reasons to stop using paper and plastic\r\nSome might say the sustainability drive to eliminate paper and plastic in business transactions is overplayed.\r\n\r\nWhile both have significant environmental impacts, business transactions are not a major source. Meanwhile, electronic transactions can be responsible for much energy use and the equipment used will ultimately become resource-heavy and hard-to-recycle ewaste.\r\n\r\n\r\n\r\nGen Z, Millennials and those younger will do much to avoid adding more plastic and paper to the world. Regardless of environmental impact, consumer demand for more convenient paperless and cardless transactions will only grow.\r\nProcesses likely to move to smartphone apps\r\nDigitized identity documents look set to be the next big frontier for smartphones. It's already been a common approach to declaring COVID-19 testing and vaccination status worldwide, but soon passports, driver licenses, student IDs and more will be made available through apps. Germany started using app-based ID cards in 2021. Around the same time, Apple announced several US states would make digital identity cards and driver licenses available using Apple Wallet.\r\n\r\nID stored on phones brings convenience and risk. A well-implemented system would let stores verify customers' age without seeing personal details they don't need, like home address \u2013 also known as 'zero trust' security. Digitized IDs could also speed up know-your-customer (KYC) procedures when applying for a loan with a smartphone.\r\n\r\nBut using a smartphone to store growing amounts of personal data introduces 'single point of failure' security risk. Those who develop and commission smartphone software like apps must ensure top-notch device security and privacy-preserving data storage.\r\n\r\n\r\n\r\nCardless cash withdrawal at ATMs is taking off around the world, especially where bankcard fraud is more common, like India. Smartphone apps enable cardless withdrawals, for example, scanning a QR code on the ATM screen with a payment app like Google Pay, or using near-field communication (NFC.)\r\n\r\nAgain, these transactions aren't without risk. Speaking to price-comparison service Bankrate, Ricardo Pina, founder of personal finance blog The Modest Wallet, said, \"Since bank cards are being replaced by phones, criminals will now be more enticed to target and hack your phone to mine your data, information and even change your phone and bank app settings.\"\r\nWhen will paper and card transactions become history?\r\nThose who run businesses that experience higher overheads thanks to processing cash, cards and printed receipts may dare to dream of a world where these go the way of the 'check.' Ubiquitous throughout most of the 20th century, many banks have stopped issuing and accepting these. Check payment is expected to be extinct by 2026.\r\n\r\nThose old enough to remember when checks were commonplace might think they'd disappeared years ago. But sometimes these methods strongly persist in parts of an economy that need them for specific reasons.\r\n\r\nA few years ago, a friend and I hiked the five-day South West Coastal Path in Cornwall, UK \u2013 and yes, it was glorious. This part of the UK is far from any major city. We were surprised to notice most bed-and-breakfasts\u00a0 accepted only cash or check. Once we understood the area's geography, we paid by check wherever we could. Traveling on foot and far from towns, it seemed unwise to part with cash we might need. These businesses told us they didn't take card payments because they only had customers in summer, making point-of-sale machines uneconomic.\r\n\r\nSimilarly, can smartphones \u2013 and reliable access to affordable data to operate apps \u2013 be all things to all people in all places? While access to mobile technologies has certainly enabled greater economic participation from marginalized people, we can easily overestimate how many can and will use these technologies if we use them or see them used around us often.\r\n\r\nPew Research estimates around 85 percent of the US population owns a smartphone, but in China and India, it's lower at 70 percent. While China leads the world in mobile payment adoption, smartphone ownership numbers don't tell us how many people could use their smartphone for payments \u2013 for example, successfully download and register to use payment apps, and access data when needed.\r\n\r\nCash transactions still account for far more business than many people think \u2013 in 2021, customers used cash for over 20 percent of point-of-sale transactions globally, according to the International Currency Association. Many businesses wouldn't survive losing 20 percent of their sales.\r\n\r\nThere is also the inevitable backlash against smartphones because of negative mental health impacts, seeing some choose to quit or radically reduce how much they use them.\r\n\r\nIt seems paper- and card-based identity and payment options will be with us much longer than we think, if the lifecycle of check payment is anything to go by. For small business, alternative point-of-sale card payment providers are fast making accepting cards more affordable, making paying by card even more ubiquitous without reducing security.\r\n\r\nWhen it comes to taking payment, it 'pays' to be flexible and listen to what your customers want, rather than focusing on what suits your business. Meanwhile, keep an eye on evolving technology making retail transactions simpler and more affordable.\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/footer>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/article>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\n<p class=\"Body\"><span lang=\"EN-US\">The speed these new codes introduced to manufacturing created its own problem. Technologist <a href=\"https:\/\/au.linkedin.com\/in\/simonraikallen\" target=\"_blank\" rel=\"noopener nofollow\"><span class=\"Hyperlink0\">Simon Raik-Allen<\/span><\/a> explained it to me like this: \u201cImagine a conveyor belt with all the products going past. You want a camera to see which products are where. If they go too fast, the camera won\u2019t read it.\u201d<\/span><\/p>\n<p>Since then, eagerness to adopt QR codes in business and personal lives has varied. Asia has been the keenest adopter, with QR codes playing a central role in digital payments. In China, consumers use WeChat or Alipay apps to make some 90 percent of mobile payments, and both use QR codes to facilitate the transaction. In Africa, M-Pesa has started to incorporate QR codes into its text message banking service.<\/p>\n<p>In Europe and North America, uptake had been less enthusiastic \u2013 until now. A 2015 <a href=\"https:\/\/techcrunch.com\/2015\/05\/04\/snapcode\/\" target=\"_blank\" rel=\"noopener nofollow\">TechCrunch article called QR codes \u201cfrustrating\u201d and a \u201claughing stock.\u201d<\/a> <a href=\"https:\/\/wtfqrcodes.tumblr.com\/\" target=\"_blank\" rel=\"noopener nofollow\">Brands eager to plaster QR codes wherever they could<\/a> and the likes of <a href=\"https:\/\/www.washingtonpost.com\/blogs\/arts-post\/post\/qr-code-tattoo-signals-end-of-the-qr-code\/2011\/12\/19\/gIQAJW7y4O_blog.html\" target=\"_blank\" rel=\"noopener nofollow\">QR code tattoos<\/a> led to perception the codes were a gimmick. The user needing to download a QR code scanning app may have contributed to this sense of needless novelty.<\/p>\n<p>In 2017 things changed. Phone manufacturers began incorporating QR code scanners into camera apps so users didn\u2019t need to download an app. Improvements in mobile technology letting scanned links open more quickly also played a part, according to Joe Waters, author of <a href=\"https:\/\/www.amazon.co.uk\/QR-Codes-Dummies-Joe-Waters\/dp\/1118337034\" target=\"_blank\" rel=\"noopener nofollow\">QR Codes for Dummies<\/a>.<\/p>\n<p>These improvements planted the seed that allowed the technology\u2019s quick adoption in the pandemic when the need became clear. Waters says, \u201cPeople now want as little contact as possible with everyday objects that may spread germs.\u201d<\/p>\n<p>This poses a novel question: Will our newfound familiarity with QR codes lead to new uses in the coming months and years? How should business and tech leaders be thinking about QR codes?<\/p>\n<h2>The Future of QR codes<\/h2>\n<p>Large retailers like <a href=\"https:\/\/www.retailconnections.co.uk\/articles\/amazon-go-grocery-the-web-giants-first-cashier-less-supermarket\/\" target=\"_blank\" rel=\"noopener nofollow\">Amazon have started experimenting with QR codes to track and for payment in their physical stores<\/a>. But opportunities are opening for retailers of all sizes, especially around demonstrating sustainability and environmental credentials.<\/p>\n<p>Fashion label <a href=\"https:\/\/www.thecut.com\/2020\/01\/the-brand-making-it-easy-to-see-where-your-clothes-come-from.html\" target=\"_blank\" rel=\"noopener nofollow\">Another Tomorrow uses QR codes on labels to give consumers more information on the clothing item\u2019s sustainability<\/a>. <a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/blockchain-ethical-claims-validation\/37127\/\" target=\"_blank\" rel=\"noopener nofollow\">Provenance uses blockchain to make supply chains transparent<\/a>, with QR codes for consumers to see evidence of what the brand claims. The <a href=\"https:\/\/www.independent.co.uk\/life-style\/gadgets-and-tech\/eu-right-repair-technology-decade-b1809408.html\" target=\"_blank\" rel=\"noopener nofollow\">2021 \u2018right to repair\u2019 EU law<\/a> means consumer electronics manufacturers must add a QR code for more information on the product, like how loud it is.<\/p>\n<blockquote><p>Businesses can also use QR codes to interact with customers, making it easier for customers to give feedback, follow the business on social media or join loyalty programs.<\/p>\n<\/blockquote>\n<h2>Securing QR code-reading for business<\/h2>\n<p>Data security is a pressing concern with widespread adoption of QR codes. Consumers and businesses may not have known the security risks as they rapidly adopted the technology in the past 12 months.<\/p>\n<p>David Emm, Principal Security Researcher at Kaspersky, says \u201c<a href=\"https:\/\/www.information-age.com\/kaspersky-researcher-provides-protection-tips-for-tainted-qr-codes-123493084\/\" target=\"_blank\" rel=\"noopener nofollow\">A tainted QR code might ask a user to download a malicious app containing malware. The malware could then steal personal information<\/a>.\u201d<\/p>\n<p>Businesses can reduce their risk by using a reputable, up-to-date QR code scanner. It also pays to raise awareness among staff and customers of malicious QR codes, for example, advising they consider whether a code looks tampered with before scanning it.<\/p>\n<p>The battle for a new technology\u2019s acceptance is won when the audience understands what it does that no other technology can do. The pandemic gave the QR code a chance to show it was no gimmick. Business should expect to see QR codes used more widely and creatively, and consider how those game-changing 7,000 characters could help them do business better.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Obscure pixel patterns once seen as a gimmick became a daily necessity. Businesses should think about how the QR code will feature in their future.<\/p>\n","protected":false},"author":2637,"featured_media":39237,"template":"","coauthors":[4156],"class_list":{"0":"post-39236","1":"emagazine","2":"type-emagazine","3":"status-publish","4":"has-post-thumbnail","6":"emagazine-category-digital-transformation","7":"emagazine-category-opinions","8":"emagazine-category-tech-for-business","9":"emagazine-category-trends","10":"emagazine-tag-history","11":"emagazine-tag-predictions"},"hreflang":[{"hreflang":"x-default","url":"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/is-paper-dead\/47013\/"},{"hreflang":"en-us","url":"https:\/\/usa.kaspersky.com\/blog\/secure-futures-magazine\/is-paper-dead\/27761\/"}],"acf":[],"_links":{"self":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/emagazine\/39236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/emagazine"}],"about":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/types\/emagazine"}],"author":[{"embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/users\/2637"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/media\/39237"}],"wp:attachment":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/media?parent=39236"}],"wp:term":[{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/coauthors?post=39236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}