For self-employed professionals and small businesses, every penny counts. But payment delays, processing fees, and unexpected costs can quietly eat into your earnings. Many business owners don’t realise just how much they’re paying—or that there are simpler, more cost-effective alternatives.
QR code payments are becoming a go-to option for UK businesses, offering a quick and easy way to accept payments without the need for a card reader. They provide an easy, mobile-friendly checkout experience and, in many cases, help reduce transaction fees.
With QR code usage steadily growing, an estimated 30% of smartphone users globally are expected to use QR codes for payments by 2025.
In the UK, QR code adoption has been significant, with 13% of all QR code users in Europe coming from the UK, surpassing the global average. This trend is driven by the convenience and versatility of QR codes, which have seen increase usage during the COVID-19 pandemic as a contactless payment solution.
But what exactly are QR code payments, and how can they benefit your business? Let’s take a closer look.
QR code payments allow businesses to accept payments when customers scan a code with their phone and complete the transaction digitally. Unlike traditional card payments, no physical card reader is required.
There are two main types of QR code payments:
✅ Fixed QR Codes – The same code is displayed at a checkout counter, invoice, or website, allowing customers to scan and pay.
✅ Dynamic QR Codes – A new QR code is generated for each transaction, pre-filling the payment amount and details.
Some businesses also use payment links, which work like QR code payments but can be sent via email, text, or social media. These are useful for businesses that operate remotely, take online bookings, or send invoices.
Read more about how payment links can work for your business.
One of the biggest advantages of QR codes is that they do not require a card reader. Many small businesses pay £100–£300 upfront for a card reader, plus ongoing transaction fees and maintenance costs.
With QR codes, all you need is a printed code or a phone screen. Customers scan the QR code and pay using their mobile banking app, Apple Pay, Google Pay, or a debit/credit card. This makes it a great solution for:
Small businesses often pay 1.5% to 3% per transaction when accepting card payments. QR codes can be cheaper, depending on the provider and payment method used.
For example, Xiva charges 0.99% for UK consumer cards, which is among the lowest compared to many other card processors.
For a small business processing £50,000 per year in card transactions, switching to QR codes could mean saving £500–£1,000 annually. That is money that could be reinvested in stock, marketing, or simply reducing overhead costs.
Unlike traditional payment systems that require hardware, software installation, and contracts, QR codes are easy to start using immediately.
Here’s how a small business can get paid using a QR code:
1️⃣ Sign up with a provider, like Xiva, and verify your account.
2️⃣ Generate a QR code through the provider’s app or website.
3️⃣ Display the QR code when you want to take a payment.
4️⃣ Let customers scan and pay using their preferred method.
If you are a mobile business, you can display the QR code on your phone screen or send a payment link to customers instantly.
For businesses that deal with late or missing payments, QR codes provide a solution by making payments instant.
Instead of waiting for a bank transfer to clear or chasing customers for invoices, a QR code means the customer pays on the spot.
With QR codes, businesses get paid faster, improve cash flow, and spend less time chasing payments.
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QR code payments are not about replacing cash or card payments. Instead, they give small businesses more flexibility and a way to accept payments without extra costs or equipment.
They work particularly well for:
✅ Retailers and hospitality businesses looking to speed up transactions.
✅ Freelancers and mobile services needing a quick and easy way to get paid.
✅ Market traders, delivery services, and event vendors who do not want to rely on card readers.
✅ Online and remote businesses that want an alternative to bank transfers.
With UK consumers increasingly using QR codes, offering this option can improve customer convenience, reduce costs, and make transactions faster.
Now is a great time to explore whether QR code payments can work for your business.
1️⃣ Choose a provider – Compare options based on fees and features.
2️⃣ Decide between fixed and dynamic QR codes – Or use payment links for remote transactions.
3️⃣ Accept payments instantly – No card reader, no delays.
QR code payments offer small businesses a simple, low-cost, and flexible way to accept payments. Whether you are running a physical store, working remotely, or selling at events, they provide an easy way to get paid instantly without needing extra equipment.
With more UK customers using QR codes, offering them as a payment option can help businesses stay ahead and provide a seamless payment experience.
Xiva offers an all-in-one solution that simplifies payment processing with secure payment links, and provides tools for scheduling, a simple website and more.
With Xiva, you can:
For small businesses and freelancers aiming to improve cash flow, streamline operations, and achieve sustainable growth, Xiva offers the ideal digital toolkit.
