Why QR code payment develop well in China?

Why QR code payment develop well in China?
                                                             Pu Zhang
                                                    School of Computer Science
                                                     University of Birmingham
                                                    Bimingham, United Kingdom
                                                    pxz638@studnet.bham.ac.uk

   Abstract— This article introduces the principles and benefits
of QR code payment. Then it talks about the development of                             III.   QR CODE
scanning code payment in China, and discusses the reason why
QR code payment can develop well in China based on the             A. What is QR code
viewpoint of HCI.
                                                                      QR code is a two-dimensional code, which
  Keywords—QR code, payment, customer habits, third-party,         records the data symbolic information in a black-
HCI
                                                                   and-white pattern with certain geometric patterns
                                                                   distributed in a plane according to a certain rule. The
                     INTRODUCTION
                    I.
                                                                   "0" and "1" bit streams that make up the internal
   In recent years, with the increasing popularization             logic of the computer are skillfully utilized in the
of e-commerce applications and the continuous                      code making concept [2]. A number of
improvement of communication technologies,                         corresponding binary geometry are used to represent
QR(Quick Response) code payment, as a new                          the numerical value information. Figure 1 is an
payment method, has been rapidly developed all                     example of QR code. It automatically processes
over the world and has not only become an                          information through an image input device or a
important growth point of mobile operators' business,              photoelectric scanning device. It has some common
but also has attracted banking finance Agencies,                   features of bar code technology: each code has its
international card companies, Internet technology                  own specific character set; each character occupies a
companies and third-party payment agencies and                     certain width; it has a certain calibration function. At
other subjects. In the last two years, China has made              the same time, it can automatically identify different
good progress in its code payment compared to other                lines of information, and deal with changes in
countries. This article talks about the advantages of              graphics rotation point. [3]
QR code payment and it also analyzes the promotion
of QR code payment for the improvement of user                     B.  Features of QR code
experience in China, as well as the change of user                     In addition to the advantages of one-dimensional
behavior.                                                          bar codes, QR codes also have the advantages of
                                                                   being able to store a large amount of information,
                    RELATED WORK
                   II.                                             reliability, confidentiality and strong security.
   Part of the previous research work discussed the
architecture, function and design of QR code
payment system [1]. Some people researched the
application of using QR codes and the benefits of
using QR codes. Other people also researched the
similar quick payment technology like NFC. Lots of
previous work focused on the security problem of
mobile payment system. Based on pervious work,
this paper researches the reason why QR code
payment can develop well in China.


                                                                                   Figure 1 QR code[4]
Relying on its huge amount of information             safe and reliable method of information storage and
carried, QR codes, can include the information in the     identification.
bar code which is stored in the background database          QR code can represent multi-lingual text and
when using a one-dimensional bar code in the past.        image data. The character set that most one-
It can get the corresponding information directly by      dimensional barcodes can represent is no more than
reading the bar code. QR code has error correction        10 digits, 26 English letters and some special
technology and security features, which increase the      characters. Therefore, it is not possible to represent
data security.                                            other languages (Chinese characters, Japanese) with
   QR code has the characteristics of high density.       one-dimensional bar codes. Most QR codes have a
At present, relatively mature one-dimensional bar         byte representation mode, which provides a
codes such as EAN and UCC bar codes can not               mechanism for representing byte streams. No matter
describe the products because of their lower density.     what kind of language, they are stored in the
If people want to know the information about the          computer in the form of internal code, and the
product, they have to read the bar code and enter the     internal code is bytecode. This allows to try to
database. This requires that the user must create a       convert a variety of language information into byte
database of indexed fields in advance with the code       streams, which are then represented by QR codes,
represented by the bar code. A QR code increases          providing an unprecedented way to represent
the information density of the barcode by utilizing       multiple languages in bar codes. Since QR codes can
the size in the vertical direction, which is usually      represent byte data and many images are stored in
several tens to several hundred times the density of      bytes, it is possible to represent an image
the one-dimensional barcode. This enable people           (photograph, fingerprint, etc.) with the barcode.
store all their product information in a QR code. If         QR code can introduce encryption mechanism.
people want to see the product information, they          The introduction of encryption mechanism is
only need to scan QR code by using QR code                another advantage of QR code. For example, when
reading equipment. Therefore, this does not require       using QR code photos, it can first encrypt the image
the establishment of a database in advance, which         information by using a certain encryption algorithm,
realizes the description of the "item" by the barcode.    and then use QR code representation. When
   QR code has error correction function. One-            recognizing a QR code, the represented photos can
dimensional bar code, when the bar code is damaged        be recovered using a decryption algorithm. This will
(defaced, deinking, etc.), it can only be handled by      prevent counterfeiting of all kinds of documents or
using the keyboard instead of scanning the bar code.      cards.
One-dimensional bar codes do not take into account
the error correction function of the bar code itself.    IV.HOW CAN QR CODES BE USED TO MAKE PAYMENTS
Although the concept of checking characters is               There are three main payment methods for QR
introduced, it is only limited to prevent reading         code payment:
errors. QR codes can represent thousands of bytes of
data. Without error correction, the barcode becomes       A. Paying merchant with QR scanners
meaningless when some part of the QR code is                 The customer opens the QR scanning application
corrupted, so a QR barcode introduces an error            and displays the unique QR code to the merchant.
correction mechanism. This error correction               The merchant will use the mobile payment
mechanism makes the QR bar code still can be              application to scan the QR code to identify the
correctly read when it has local damage due to            customer and deduct the money from their mobile
perforation, fouling. The error correction algorithm      wallet.
for QR codes is the same as the error correction
algorithm used for satellite and VCD. This error
correction mechanism makes QR code becomes a
B. Paying merchant without QR scanners                   payment access system to the backend transaction
   In this case, the merchant displays the QR code to    system and the settlement system for processing.
the customer and the customer will scan it by using
the QR scanning application on the mobile device.        B. QR code payment transaction process
The app will identify the merchant. The customer            The main difference between QR code payment
then enters the payable amount and finishes the          and general mobile payment is the use of QR code
payment.                                                 and the generation and transmission of payment
                                                         instructions. Once the payment instruction is entered
C. Paying individuals                                    into the payment access system, there is no essential
   This usually happens between private individuals.     difference between the QR code payment and other
For example, when someone need to pay taxi fare          mobile payments. Therefore, the analysis of the
upon drop-off or rent to their landlord. In this case,   security of the QR code payment technology focuses
both payer and the recipient open the QR Scan            on the payment instructions before entering the
payment application. Payer will scan the recipient's     payment system.
unique QR code, add the payment amount and                  By analyzing and researching the commonly used
complete the transaction.                                QR code payment software, it is found that the QR
                                                         code payment can be divided into two types: one is
        V.   QR CODES PAYMENT PRINCIPLE                  QR code for payment, which appears in the process
   QR code payment is a form of mobile payment.          when the payment client App sends payment
As the most important part of e-commerce, mobile         instructions to the payment access system. It may be
payment directly involves the capital security of        a payment request or a payment certificate. The
users and related parties. Therefore, payment            other is the QR code of goods, such QR code
security is one of the key issues in mobile payment.     appears in the visit to the payment platform. The QR
QR code payment is a payment method that remote          code of the commodity used by the payment client
access to the payment system by using QR code, and       platform to access the payment content platform
then submit payment instructions. [5]                    does not belong to the QR code payment category,
                                                         because only the URL of the commodity sales
A. QR code payment system architecture                   address is stored in the QR code of the commodity,
   QR code payment is very similar to the other          and it has no relationship with the payment access
forms of mobile payment, and there are two               system.
differences.                                                QR code payment has two modes, one is active
   First, access to pay content platform and access to   mode, one is passive mode. In the active mode, the
payment systems are completed through the                payer uses the QR code reading software built in the
payment client App. The payment client App is            payment client App to scan the QR code containing
installed on the mobile phone application, with the      the payment link for payment.
ability to read, generate QR code and complete               The QR code includes the payment access system
payment. The mobile terminal is not a direct             URL and the access parameter, and the payment
participant in the payment process and only provides     instruction is initiated by the payer. In the active
an installation environment for the payment client       mode, the payer requests the payment system by
App.                                                     using the payment client App and generate the QR
   The second difference is the way the payment          code payment receipt [6]. The buyer can scan the
system is accessed. The QR code payment access           QR code to obtain the payment voucher and issue a
payment access system by parsing the URL in the          payment instruction to the payment access system to
QR code or using the QR code as the electronic           ask the payer to pay. The payment instruction is
payment voucher. The payment client App generates        initiated by the payee. The QR code contains
a payment instruction, which is submitted by
payment credentials, which can be a string of            as Hong Kong, the PDF417 code has been used as a
numbers or other information.                            badge for identification and printed directly on ID
   In the active mode, when the user starts to pay       documents for quick reading.
with the QR code, it needs to open the payment              According to the report of “New York Times” in
client App and scan the payment QR code. The             July 17, 2017: “Almost everyone in major cities in
payment client App scans and reads the payment QR        China is using smartphones to pay for everything,
code, and the user confirms the payment amount and       and China has stepped into the 'cashless era.' While
other information on the cell-phone interface. After     three years ago, the Chinese paid the deal mainly in
the payment instruction is confirmed, the payment        cash. [7]
instruction is accepted by the payment access system.       The report of “National Business Daily” shows
After the payment system processes the payment           that the proportion of information technology among
request, payment client App will display the             the scientific and technological fields contributing to
payment result.                                          "sense of gain" is as high as 61%, surpassing that of
   Passive mode of QR code payment process: the          the other four areas. Among them, the QR code
payment user first opens the payment client App,         payment ranked first with a ratio of 26.91%,
requests the payment system from the payment             indicating that QR code payment which are
client App, and the payment system sends the             changing people's daily lives, "perception" is high
payment code to the payment client App. The payee        for Chinese ordinary people. [8]
scans the payment QR code on the payment phone
                                                            The report said that the development of QR code
of the payer. The payment QR code is recognized          payment not only brought convenience in the
and read, the payee submits the payment request to       payment method, but also promoted the rapid
the payment system, and the payment access system        development of online shopping, sharing of bicycles
requests the payer to confirm the payment request.       and other fields. These are also changing the
After confirmation, the payment client App confirms      consumption and living habits of the Chinese people,
the payment to the payment access system. After the      bringing a real "sense of gain" to the people.
payment system processes the payment request, the
payment result is fed back to the payer and the payee.      Mobile payment has brought a lot of convenience
                                                         to people's lives, more and more people do not need
   Compared with the payment process of payment          to carry a wallet when going out, they can easily pay
in active mode, the main difference between passive      by using phone. In 2016, 22.8% of users used QR
mode QR code payment is that in the passive mode         code payments daily, and up to 60% of users use QR
QR code needs to send the payment code to the            code payment weekly.
payment system to generate the payment voucher.
The payment voucher is an important parameter             VII. WHY QR CODE PAYMENT DEVELOPS WELL IN
when the payee issues a payment instruction to the
                                                                             CHINA
payment access system.
                                                         A. No special equipment needed
VI. The development status of QR code payment in            QR code generation only need software, and there
                        China                            are many free online software. QR code payment is
   QR codes are similar with one-dimensional bar         easy to use for both consumers and merchants.
codes and are widely used in commercial activities,      Quick payment has two prerequisites: a standard
especially in industries such as high-tech industries,   information terminal and input and output devices.
storage and transportation industries and retail         For payment convenience, it is necessary for the
industries. In some countries and regions such as        equipment can be carried around, the phone has this
Japan, QR codes have become quick and easy ways          feature naturally and is almost stuck in the hands of
to communicate information in daily life. In some        consumers, for consumers, the phone does not
U.S. and Canadian provinces and in countries such        necessarily support NFC but must have a camera. As
long as customers have a camera on their phone,         people need to carry a lot of cash with them, they
they can pay by scanning the QR code. For               sometimes may receive counterfeit money. After
merchants, they only need to print a QR code            bank card payment appears, people need to bring a
without the purchase of specialized equipment, and      bank card at any time. And now, people don't need
it is zero-cost.                                        to take a bank card, they only need to bring a phone,
   Compared to the traditional third-party payment      they can easily pay by scanning the code. It is indeed
terminal POS machines, a POS machine equipment          a good way to pay. For some young people, it is
price is as high as 1,000 yuan. For some merchants,     convenient, they do not need to bring a bag and do
this is a high cost. Therefore, many small stores do    not need to take a wallet when going out.
not support credit card payment, but support the QR     C. Increased safety
code payment.
                                                           Storing your payment details in your mobile
    A similar technique to QR code payment is Near-     phone and carrying it around is much safer than
field communication(NFC), which is adopted by           bringing your entire wallet full of cash and credit
Apple Pay. NFC is faster than QR code payment, but      cards everywhere you go. The chances of theft and
why NFC is less popular than QR code in China?          fraudulent purchases using your payment details are
There are two reasons:                                  much less with QR codes.
   1) The first reason is the cost of the chip. For
NFC, it needs to be equipped with an NFC chip on        D. Customer habits
everybody's phone. The cost of a chip is a few             Consumer habits are an important factor in the
dollars, so a phone equipped with NFC may spend         rapid development of QR code payment in China.
tens or even hundreds of millions of yuan on this       Meanwhile, it also hindered the development of QR
item. Many mobile phone manufacturers are not           code payment in the United States and other
equipped with NFC function in their own phones.         countries.
   2) The second reason is the problem of                   First, compared with European and American
debugging of NFC equipment. NFC debugging is            countries, Chinese people prefer to use cash. In 2006,
also a big issue. Besides, public transportation        cash in circulation in China accounted for about 13%
varies from place to place, and the POS machines in     of GDP, compared with 6.4% in the United States
various businesses are not the same [9]. They do        and 3.5% in the United Kingdom. Europe and the
not necessarily support the NFC function.               United States banks have been developed for
Debugging not only takes a long time, but it also       hundreds of years, bill payment has become an
costs a lot of money.                                   irreversible and deeply rooted national payment
   Apple Pay is an example of using NFC. It only        habits. In China, Bank of China Zhuhai Branch
supports IPhone 6 and IPhone 6S or later, and the       issued its first credit card in 1985.
system needs to be upgraded to IOS 9.2 or later.
Secondly, there are many tedious verifications in the      Second, due to the imperfect credit system, the
process of attaching a card, and various problems in    payment which rely on credit is difficult to rapidly
POS machines during the operation, it is easy to        develop in China. Chinese have an average of 3.6
reduce the user's preference for Apple Pay and it is    debit cards, but only one-third have credit cards.
almost impossible to develop habits.                    This unbalanced situation has created a foundation
                                                        for the growth of mobile payments because
B. More convenience                                     consumers have no fixed credit card and check
   People don’t need to enter the details of the        payment habits so that Chinese people can adapt to
person they are paying, just scanning the QR code       mobile payments more quickly. Many people enter
will identify them instantly. People can make           the era of QR code directly from the cash age after
payments using QR codes from any location with          having a smart phone. The user experience is
only a few taps on the mobile device. In the past,      promoted large enough to rapidly increase the
                                                        number of users who are willing to use the new
payment method. There are so many consumers who         technologies, businesses are not motivated to
are willing to use the new payment method, which        provide new technologies. All the power to promote
aroused the attention of businesses, coupled with the   new technologies comes from companies that issue
cooperation of all parties, which makes the             new technologies (apple, google, sumsang, etc.), that
popularity of China's code scanning so fast.            spend huge sums of money on merchants and
   In addition, in developed countries in Europe and    advertisements to consumers, and it's easy to see that
the United States, credit card payment has been for     such technology can not be rapidly popularized.
more than half a century away, and the history of       E. Attitude to the unification thing
checks has been for centuries. In 1952, Franklin
National Bank of California issued the first bank          In China Alipay and Wechat Pay dominate
credit card. The earliest check was used in North       China’s mobile payment sector. This is impossible
America as early as 1659. Until today, credit cards     in America. Historically speaking, Americans have
and checks are still the main form of payment in        great fear, exclusion and resistance to those unifying
Europe and the United States. Decades of credit card    and super-powerful things, from the big government
and POS systems have largely restricted the             to big corporations. In other aspects of everyday life,
promotion of more advanced mobile technologies.         many Americans also do things based on a loose
                                                        (open) agreement. Communication tools such as
   Any one of the payment technology wants to be        WeChat and Facebook are closed and uniformed:
widely accepted by society, it can not be separated     Only two people have installed WeChat, so they can
from the consumer and business of these two factors.    communicate with WeChat. For another example, A
On the one hand, no matter how much consumers           transfer some money to B. When they transfer
want to use this payment technology, they must also     money with WeChat, it requires both sides are using
have correspondingly supported businesses.              WeChat. However, in the United States, the two
Conversely, if the merchant is merely providing a       most common types of money transfers (checks and
platform, but the paid experience is not greatly        ACH transfers) are based on an open agreement:
improved, consumers will not change their user          With ACH transfers, providing the account number
habits. In other words, anyone who wants to             and routing number is sufficient. The two sides that
introduce a means of payment in the market will         pay and receive money do not need to be in the same
inevitably seek to work together from both the          bank.
business and the consumer.
                                                           Why this will have a profound impact on the
   That is the problem of QR code payment and           development of the payment form in China and the
other mobile payment system. In the United States,      United States?
the large and medium-sized businesses based on
POS have been fully used to the consumption of             For instance, many people say WeChat payment
credit card system for decades. For them, the           is very convenient, even hospitals, utilities,
difference between users' experience of paying by       government departments have supported the WeChat
mobile phone and paying by credit card is not big,      payment. This is hard to happen in the United States.
the fees may be different, but they do not have much    First, both WeChat and Alipay are products of
incentive to offer new payment methods without          private companies. If a government department or
additional funding. From the consumer's point of        public utility unit supports WeChat and Alipay
view, using technologies such as QR code payment        payment, or if a government agency provides a
or apple pay in places where credit cards are           service using WeChat, then there is the suspicion of
available, user habits need to be changed, but the      private use of public goods, there is a suspicion that
improvement of user experience is not much. In          the government endorses private companies.
places where people can not use a credit card, the      Chinese people find it hard to understand the weight
use of apple pay is almost impossible, so a vicious     of this suspicion. The Chinese people may think this
circle, consumers have no incentive to use new          is a very good thing. It is the state's support for the
                                                        industry. However, the views of the Americans are
not the same. Americans are particularly concerned         discount subsidies, many online App have a discount,
about separating the public from the private. If there     if user pay by WeChat or Alipay payment.
is any suspicion, some people will question it. In the         These companies also have helped to increase the
long run, everyone is very careful. And if                 efficiency and quality of government public services.
government departments support WeChat and                  Take Alipay for example. At present, 357 cities in
Alipay, PayPal will say why you do not support             31 provinces (districts and cities) have settled in
PayPal, and other companies will also question or          Albania's "city service" and have realized the QR
even litigate. Now the US government departments           code payments for public services, including paying
support these payment methods: credit card,                utilities, paying traffic fines, paying for public
cashier's check, ACH transfer. These payment types         transportation and online registration of the hospital
are based on public agreement, there will be no            and so on. People used to go to the relevant office to
endorsement of the suspicion of private companies.         do these things, and now they can do it without
   The closed property of WeChat and Alipay will           leaving home.
be a taboo for Americans. In the United States,               Whether it is business or consumer, mobile
proprietary things are basically not big. For example,     payment not only makes payment convenient, more
BBM on Blackberry, Apple's iMessage, and                   importantly, the payment also gives the merchants
Whatsapp now have not reached the monopoly level           other functions. Take Alipay for example. When
of WeChat. A very important reason here is that            people pay for a business with Alipay, Alipay's
Americans do not like monopoly things, do not like         client will show the corresponding business
to be forced to use something. If you tell Americans       information, if the consumer follow the public
that you have to install Whatsapp, many Americans          number of the business, it will become a member of
will soon have a little resistance in their hearts. This   the business, they can receive the relevant
deep resistance, in turn, has prompted many                promotional information. In other words, instead of
Americans to engage in open protocols and                  just using a payment method, merchants can use
ecosystems because they do not want to be forced to        Alipay to build a link between merchants and users
use one piece of software or to force others to use        through this payment method. This is a function that
one piece of software.                                     traditional credit card payment does not have. Alipay
F. Company’s effort                                        has become a bridge to communicate users and
                                                           businesses.
   QR code payment can be widely used in China,
one of the most important reason is the company’s             WeChat and Alipay also have a built-in function
effort to provide information, advertising,                “red envelopes”, red envelopes is a Chinese New
promotions, which promote positive attitudes               Year tradition, red envelopes means the lucky
towards QR code payment [10].                              money. Now Chinese people are sending virtual red
                                                           envelopes to their relatives and friends through
    WeChat, Alipay did a very good job in promoting        WeChat or Alipay during the Chinese New Year or
investment and marketing activities, and establish a       holidays. This greatly enhances the popularity of
lot of use scenarios. They offer users a large number      Alipay and WeChat.
of discounts and subsidies in a wider payment
environment, which can take the initiative to                 Alipay and WeChat also provide the function of
cultivate user habits.                                     instant transfer within the platform, which is the key
                                                           to the rapid development of third-party payment
   Subsidies are a very effective way to develop user      platform. The transfer function of the third-party
habits. During the promotion phase, WeChat and             payment platform is the key to rapid development of
Alipay deployed large-scale subsidies to deploy QR         various types of comprehensive financial services
codes in almost all key areas of major cities in the       (red envelopes, collection of money, and repayment
country and subsidized users through various online        for the credit card) of third-party payment platforms.
and offline promotions. They give users a lot of           Consumer's transfer needs in the mobile payment
accounted for a very high proportion, which promote       The top 10 U.S. banks only hold 32% of the total
the platform.                                             number of outlets. In addition, the United States has
   However, what did their competitor do? Apple           more than 1,000 non-bank deposit-taking institutions
Pay just cooperated with the bank. In the initial         and about 10,000 credit unions. Not to mention
promotion, it did not invest a lot money both online      building mobile payment platform more difficult,
and offline. In the online promotion, Apple Pay does      just the high cost of inter-bank transactions is a huge
not have the "Red Envelope Advantage" of WeChat           obstacle. The cost, efficiency and risk are not an
and Alipay, nor does it provide users with                order of magnitude in four interbank settlement and
substantial concessions and subsidies. In the offline     settlement between nearly 6000 banks. This is a big
promotion, Apple Pay only focuses on high-end             obstacle to the mobile payments business in the
consumption scenarios such as Starbucks, 711 and          United States.
KFC and it ignored the small business                        China's population has a huge advantage in
                                                          popularizing new technologies. In Denmark, with a
G. Other reason                                           total population of more than 5 million, even if a
   Of course, QR code payment can be popular in           good new technology initially occupied 10% of the
China, it has a great relationship with China's special   market, it is only 500,000 users, such a base would
national conditions and China’s population.               hardly support a new company in continuing to
                                                          create new, affordable and easy-to-use technology.
   QR code payment can not be without a bank card,
                                                          But it can be seen in China, with the advent of
regardless of deposit card or credit card. In China,
                                                          promising new technologies, such as mobile
opening a full-function bank deposit card is the most
                                                          payments, shared car, takeout software, and sharing
convenient in the world. As there is no threshold
                                                          of bicycles, even if the money is lost, big companies
(even though you do not have a job) and account
                                                          are willing to continue investing in the early days.
opening is free and people can get card in real time.
                                                          Because the market is too large. This is one of the
Most Chinese have at least one card of four state-
                                                          reasons why Denmark, a country where bicycles are
owned banks. As many public benefits involving
                                                          far more used daily than China, can not achieve
social security, subsidies and so on are directly
                                                          public bicycles and share bicycles, because Denmark
linked to state-owned banks, for example, rural
                                                          does not have a population density of Chinese cities.
subsidies are directly transferred to the agricultural
bank card of each farmer. This ensures that the state-
                                                                            VIII. SECURITY
owned banks can cover all the areas, whether
economically developed or underdeveloped.                    At any time, the security of funds is a very
                                                          important issue. If the QR code payment is not safe,
   WeChat or Alipay, want to carry out mobile             no matter how convenient and fast, no one will use it,
payment services in China, the first thing need to be     so here it need to discuss security issues under
resolved is to reach a payment agreement with the         Chinese QR code payment.
bank, and the four major state-owned banks
basically covering 99% of Chinese, as long as the         A. Security requirements for QR code payment
four banks get solved, the problem is solved. What is        As a special form of mobile payment, QR code
needed for mobile payments is a highly centralized        payment has similar security requirements as mobile
financial system. The superb coverage of large state-     payment. In the mobile payment process, from the
owned banks has allowed Alipay to grow from start         perspective of the transaction process, its basic
to grow, with only needing to support a small             security requirements include verifiability, privacy,
number of banks. In 2017, Alipay only support             integrity, non-repudiation, etc.
about 150 banks in total.
                                                             1) Authenticity: since the main process of QR
   According to the statistics of the US Bank             code payment is carried out in a network
Location website, there were 5,796 public banks and       environment, both parties of the transaction transfer
90,833 bank branches in the United States in 2017.        funds through the payment system and the
identification of the parties to the transaction is an   compares the received digest to determine whether
important part of mobile payment. If lack of             the message is complete.
certification in the transaction process, then              QRl code payment brings convenience, but also
hackers can easily cheat sensitive information and       brings the problem of maintaining the integrity and
financial fraud by forging identity. Certification is    unity of all parties involved in the transaction. For
the identification of people or entities identity to     example, the transaction data changes in the
provide a guarantee of authenticity. The parties to      transmission process, resulting in the different
the transaction can confirm each other's identity        payment information being seen by the parties to the
with or without meeting. There are 3 authentication      transaction. In addition, data may be lost,
methods in mobile payment.                               duplicated, or the order in which information is
   • The principal uses a key which is only shared       transmitted is altered during the payment process,
     with the verifier to encrypt the message. The       which may result in different information being seen
     verifier uses the same key to decrypt the           by the parties to the transaction [12]. Maintaining
     identity of the principal.                          the integrity of the parties involved in the
                                                         transaction is the basis of mobile payments, and
   • The principal signs his message using his           therefore it requires integrity measures to prevent
     private key, and verifies the signature using       the random generation, modification and deletion of
     the principal's public key to verify the            information, while preventing the loss and
     principal's identity.                               duplication of information during data transmission
   • The subject proves his identity through a           and ensuring the order of information transmission.
     trusted third party.                                   4) Non-repudiation: In the QR code payment, all
   2) Confidentiality: from the perspective of the QR    the payment information exists digitally. Compared
code payment process, there are multiple data            with the traditional paper voucher method, the
exchanges between the payment client App and the         digitized information is more easily modified and
payment access system, and the data may be related       forged. In order to prevent the data being modified
to the user's identity, payment instruction and          or faked as an excuse, traders denied participating
payment voucher, which are sensitive information of      in trading activities, the transaction information
the transaction process. Once leaked it may be used      needs to be added to the trader evidence of
for illegal trading and lead to the QR code payment      participation in the transaction, that is, non-
system user’s identity information leakage or            repudiation. Non-repudiation evidence is primarily
financial losses. QR code payment is based on an         provided by digital signatures in mobile payments.
open network environment, maintaining the
confidentiality of sensitive information in the          B. How Chinese company solve the security
transaction process is an important guarantee for           problem of QR code payment
secure transactions [11]. Therefore, to prevent             The security of QR code payment is solved by the
sensitive information from being illegally accessed      following two aspects:the first is the authentication
and stolen, in mobile payment, encryption is             when the QR code payment function is opened, the
generally used to ensure the confidentiality of          second is the generation mechanism of QR code.
sensitive data.
                                                            Although now the phone number is opened with
   3) Integrity: Integrity can generally be obtained     an ID card, bank card is also ID card to open, but
by extracting the message digest of the message.         third-party payment platform itself can not confirm
First it need to generate a digest by using hash         the corresponding relationship between the phone
function, then attach it to the message as the basis     number and bank card by ID card. This work can
for verifying the integrity of the message. After        only be conducted in the face-to-face manner by the
receiving the message, the receiver of the message       bank. That is: 1. The bank verifies the phone number
generates a digest with the same hash function and       at the time of card opening. 2. After card opening,
add / modify the certified cell phone number               scanning code, the system will detect whether the
separately (people must be present and verified            QR code contains Trojans to protect the safety of the
through the identity system with the Public Security       user's phone.
Bureau, after the information is passed, it can be            Alipay and WeChat have done a lot of work to
completed). This means that people grant the               make QR code payments meet all security
appropriate mobile phone number transfer                   requirements including verifiability, privacy,
permissions through his on-site permission, so as to       integrity and non-repudiation.
ensure safety. The job was apportioned to the day-
to-day work of more than 220,000 commercial                                  IX. DISCUSSION
banks across the country. This purely human input is
unrealistic for other countries’ financial institutions.       According to Liébana-Cabanillas’s research,
                                                           “attitude, innovation and subjective norms are
   In the early stage of the development of the QR         determinants of the user’s intention to use QR code
code, the QR code payment is an active payment for         payment [10]. Through the above analysis, it can be
the user. The user finishes the payment by scanning        seen that the QR code payment greatly enhance
the QR code provided by the business (or person). In       Chinese user’s experience. QR code payment of
this process, the user is incapable of intervening or      Alipay can have a great market, is based on the
discerning the generation of a QR code. This               popularity of Ali and other e-commerce platform of
mechanism allows hackers can easily implant                Taobao. WeChat is a monopoly social platform,
Trojans, this payment does exist a great security risk,    which has a good social demand orientation. And
and hackers can generate Trojan horse embedded             they have done a lot of innovative activities to win
QR code with almost no cost.                               the trust of consumers and successfully attracted
   The current QR code payment method can be               consumers, which makes China's users have a good
understood as a passive payment method. The QR             attitude towards scanning code. This is the reason
code (or barcode) is generated by the user himself or      that China's code scanning can rapidly develop.
herself. The merchant scans the user's QR code (or
barcode) to complete the payment. Such a change                             X. CONCOLUSION
made the entire payment much safer. The QR code               QR code do not need special equipment, it is
is generated by the user himself, which controls the       convenient, it also increases safety. Chinese user’
generation of the QR code at the source and greatly        experience is promoted large enough by using QR
improves the security. Payment code has timeliness,        code payment. China has unique QR code payment
payment code is a one-time generation, timeliness is       environment, besides, China's third-party platform
one minute, after the scan by the merchant will be         has made a significant contribution to the popularity
invalid. Besides, a payment code can only be               of QR code payment and well handled the security
successfully paid once, repeatedly being scanned           issues of the QR code payment.
will not be repeated chargeback.
                                                              This paper mainly talks about the reason why QR
   On the other hand, the payment codes of Alipay          code payment develop well in China, but over the
and WeChat, require merchants to be certified or           past year, QR code payments have developed very
contracted, which controls the scope of the flow of        much around the world.
funds and further limit the scope of the risk. The
payment code itself is a series of numbers, does not           “The Asian Banker” reported that “In 2017, India
contain sensitive information, business code               launched the Bharat QR, which is called the world's
scanning will not disclose the user's account              first fully interoperable QR code payment. It is
information. These companies done a lot of work on         developed by the India national payment company
code scanning technology, for example, the payment         (NPCI), MasterCard and Visa. It overcomes the
code has anti-screen mode to prevent crooks to             limitations of the closed loop QR code-based
induce users to share screenshots. In addition, when       acceptance.” This is a new model for interoperability.
                                                           [13]
In the future work, the research will focus on the                            [9]    Why China ranked only 6th in the world's top 10 cashless countries
                                                                                        Available                                                             at:
development trend of QR code payment.                                                   http://t.cj.sina.com.cn/articles/view/6397551539/17d52e3b3001005j1f
                                                                                        (Accessed: 6 February 2018).
                                                                                 [10]   Suryotrisongko H, Setiawan B. A Novel Mobile Payment Scheme based
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