QR code payment systems have become increasingly popular in China. People use them in everyday life to pay for small purchases or even red packets in banquets or donations at temples.
But the People’s Bank of China is said to be imposing a cap on payments via static QR code from April, limiting the transactions to 500 yuan per day per person.
The rule was probably introduced to counter an increase in fraud cases. As static QR code won’t change with time, some criminals would stick a fake QR code to cover the original QR code in a shop in order to steal payments.
Still, if one needs to make payment exceeding the limit, they can easily switch to dynamic QR code.
In the case of dynamic QR codes, the payment system generates a random QR code, which will be effective for only 30 to 60 seconds. Therefore, even if someone hacks the QR code, they won’t have enough time to steal the payment.
Most QR code-based payment systems in Hong Kong are using dynamic QR code. Even when you see a static QR code in a shop, you can still request the seller to scan the dynamic QR code generated on your smartphone to ensure security of the payment process.
Customers can enjoy convenient and secure mobile payment as long as they take time to understand the new technologies.
This article appeared in the Hong Kong Economic Journal on Jan 10
Translation by Julie Zhu
[Chinese version 中文版]
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