QR invoices: quick and easy digital payments

Short for Quick Response Code, a QR code is a two-dimensional barcode containing a wealth of information. Very popular with Asian consumers, paying by QR code with a smartphone greatly simplifies everyday transactions. With this same drive for simplification, applied to the world of banks and businesses, the Swiss giant SIX Group launched the development of QR-invoices, which are increasingly used today.

History of the introduction of QR-invoices

It was the financial group SIX Group, which has operated the Swiss stock exchange since 1996, that originated the introduction of QR-invoices in Switzerland.

A modernisation of the payment system that took place in several stages:

• In 2016, SIX Group announced its intention to introduce the ISO 20022 standard in order to harmonise and modernise financial flows between banking institutions. Following this, the roughly 208 banks concerned prepared for this major change ahead of December 2017, notably replacing the DTA format (used for data exchanges between businesses and financial institutions) with pain.001.

• On 15 November 2018, SIX Group announced the arrival of new payment slips (the fourth version to date) for summer 2020, specifying that these would be white and feature a QR code to make data entry easier and reduce errors.

• Since 30 July 2020, traditional payment slips – namely payment slips with a reference number (BVR) and red payment slips (BV) – have gradually been replaced by the new Swiss QR-invoice.

Introduction to the QR-invoice

What is a QR-invoice?

The QR-invoice is a type of payment slip used in Switzerland since 30 July 2020. Designed to modernise Swiss payment traffic, it enables invoices to be processed entirely digitally, with no break in media, offering an efficient, convenient and automatic payment method — all good reasons why b-sharpe offers its clients the QR-invoice for their fund transfers!

Good to know: the QR-invoice does not remove the option of receiving paper invoices. On the contrary, it simplifies the process, since there is no break in media between invoicing, dispatch and the payment order. The recipient simply needs to scan the QR code and confirm the payment.

Composition of the QR-invoice

The QR-invoice is characterised by the Swiss QR code printed in the payment section. This contains the various payment details required to validate the transaction.

In addition, the payment section is made up of two distinct parts:

• the information required to execute the payment in digital form (Swiss QR code);
• the information required to execute the payment in text form (readable text).

This second part is essential, as it allows the invoice recipient to quickly check the validity of the payment information contained in the QR code, or to enter the payment manually if needed.

Two types of QR-invoices

There are currently two variants of the QR-invoice intended for different uses:

• the QR reference, which corresponds to the former BVR reference and uses the same reference numbers (allowing an easy transition), and whose use is limited to Switzerland and Liechtenstein;
• the Creditor Reference (SCOR), which serves the same function as the QR reference but can be used internationally.

Please note: the QR reference can only be used with the QR-IBAN provided by the bank to its clients. SCOR, on the other hand, requires the IBAN to be used at the same time.

How the QR-invoice works: what adjustments are needed?

During the transition phase between the traditional red and orange payment slips and QR-invoices, businesses have the option of using both formats. However, it is best to adapt your company’s practices now to how QR-invoices work, since they are becoming increasingly widespread.

It is therefore wise to quickly adapt your receivables and payment software, as well as to update your data-entry forms to include both variants of the QR-invoice. To be able to read and process QR-invoices on an ongoing basis, it is also necessary to update the software and hardware of your scanning and reading platforms.

The benefits of the QR-invoice

Whether for the issuer or the recipient of invoices, QR-invoices offer many benefits.

The benefits of QR-invoices for issuers are as follows:

• invoice processing is simplified overall (fewer manual tasks);
• payment slips are printed on perforated white paper (no more need to order pre-printed invoices);
• all payment information is transmitted electronically;
• all BVR reference numbers can still be used for QR references;
• all payments within the Single Euro Payments Area (SEPA) can be made via SCOR;
• a better overall view of receivables collection;
• the fields relating to the amount or the payer can be left blank.

The benefits of QR-invoices for recipients are as follows:

• invoice processing is simplified overall (scanning the QR code replaces manual entry);
• checking payment information is made easier and faster thanks to the text data in the payment section;
• the payment channel is your choice (counter, e-banking, m-banking).

How to generate a QR-invoice?

QR-invoices have the advantage of being easy to generate and print from a computer in just a few steps. The issuer simply needs to follow a few presentation requirements, notably the position of the QR code within the payment section.

To do this, it is advisable to use a program provided by one of the software vendors specialising in the creation and processing of QR-invoices.

By simplifying, streamlining and harmonising financial transactions through full digitisation, the introduction of QR-invoices offers many benefits for Swiss businesses. Good reasons to quickly implement the adjustments needed to process these digital payment slips!