The Popularity of Electronic Mobile Payments: Based on QR Codes

Abstract

This paper examines the widespread adoption of QR code-based mobile payments in China, analyzing the economic, technological, and social factors driving its popularity, while also addressing the associated security risks and challenges. The convenience, speed, and low infrastructure cost of QR code payments have made them especially prevalent among small businesses and street vendors, supported by government digital initiatives, high smartphone penetration, and consumer willingness to embrace new technologies. However, the rapid growth has also led to rising incidents of fraud, such as counterfeit payment codes, phishing scams, and unauthorized data collection, exacerbated by regulatory gaps and fragmented oversight. In contrast, the limited adoption of QR code payments in many foreign countries is attributed to well-established credit card systems, stricter data privacy laws, and the lack of standardized frameworks. The paper further explores policy responses, drawing on international best practices from countries like Singapore, India, and the European Union, including unified technical standards, strong customer authentication, open banking models, and cross-institutional anti-fraud collaboration. It proposes localized recommendations for China, such as enhancing regulatory oversight, promoting interoperability, strengthening data protection, and improving public awareness. The study concludes that while QR code payments have revolutionized financial transactions in China, a balanced approach integrating innovation with robust security and regulatory frameworks is essential for sustainable development and potential global expansion.