Carlos Netto is Co-founder and CEO of Matera, a software company he founded over 30 years ago in Brazil.
The sun beat down on the cobblestone streets of Monte Verde, Brazil, as I wandered, parched and dreaming of a cold beer. Rounding a corner, I stumbled upon an unexpected oasis: a vibrant, unattended beer booth standing proudly on the sidewalk.
This wasn’t your average kiosk. There was no bored vendor and no cash register—just a row of gleaming taps, each adorned with a unique QR code. A playful sign invited me to “Scan, Pay, Pour.”
Intrigued, I pulled out my phone, opened my banking app and scanned the code for a local lager. With a satisfying “beep,” my payment went through, and the tap unlocked. Moments later, I was sipping a crisp, refreshing brew, marveling at the sheer simplicity of it all.
QR Codes And Instant Payments Can Make Products Taste Better
This crafty beer merchant didn’t invest time or energy hiring people to collect payments for the beer. They didn’t pay for expensive terminals to collect money at the kiosk. Rather, they focused on creating the best beer and serving it to people when they need it most—on a hot day while on vacation.
As Jeff Bezos famously said when pitching Amazon Web Services (AWS) in 2008, breweries should focus on what makes their beer taste better, not spend any time making electricity (like they did at the turn of the century). Over time, breweries did just that. They focused on making better beer, depending on other companies for electricity.
Just like breweries stopped focusing on electricity many years ago, companies in Brazil are less likely to get distracted by payments. With instant payments and QR codes, companies don’t need to buy or rent a payment terminal that has to meet a laundry list of security requirements. QR codes can be presented on any screen or printed on a piece of paper and don’t require a certified terminal.
A Toast To Pix-Powered Innovation
The simplicity and convenience I experienced at that beer booth were a testament to the innovative spirit that has flourished around Brazil’s Pix payment network. While some might argue that Pix’s success is largely due to mandates from the Central Bank, the reality is that entrepreneurs and developers have taken these tools and built solutions that truly enhance the payment experience.
The combination of QR codes and instant payments via Pix has made it possible for businesses to offer seamless, low-cost payment options. This innovation has not only simplified transactions but also made their products and services more accessible to a broader range of consumers and businesses.
Bringing The Magic To The US
The U.S. is well-positioned to replicate this success. With instant payment rails like FedNow and RTP already in place, the infrastructure exists to support widespread QR code payment adoption. U.S. consumers are already familiar with scanning QR codes for information and menu access, making the transition to using them for payments a natural next step.
Payment QR codes are very different from URL QR codes, the type most often used in the U.S. for information sharing.
Payment QR codes are embedded with all the information needed to process a payment. Financial institutions equipped with proven and secure QR code payment technology can generate QR codes for merchants, validate them when scanned to make sure they haven’t been tampered with and lock QR codes once they are paid so they don’t get paid twice.
Once the U.S. has a QR code payments standard (currently being developed by ASC X9), QR codes generated from one financial institution can be read and processed by another.
By embracing QR code payments, U.S. banks, credit unions and merchants can offer a more frictionless, intuitive payment experience. The technology to generate and decode QR codes is already available and proven, eliminating the need for businesses to develop their own solutions from scratch.
Conclusion
As my experience in Brazil highlights, the future of payments can be as simple, secure and enjoyable as scanning a code and pouring a beer. By thoughtfully implementing QR code payments with instant payments, businesses can streamline operations, enhance security and offer a better customer experience.
Here’s to QR codes, real-time payments, innovative merchants and the joy of discovering a cold beer on a sunny afternoon. Cheers!
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