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. Highly popular among Asian consumers, paying by QR code using a smartphone greatly simplifies everyday transactions. It is with this aim of simplification in mind – applied to the banking and corporate sectors – that 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 services firm SIX Group, which has managed the Swiss National Stock Exchange since 1996, that pioneered the introduction of QR invoices in Switzerland. 

The modernisation of the payment system 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 208 or so banks affected began preparing for this major change, scheduled for December 2017, which involved, in particular, replacing the DTA format (used for data exchanges between businesses and financial institutions) with pain.001.

• On 15 November 2018, SIX Group announced the introduction of new payment slips (the fourth version to date) for summer 2020, stating that these will be blank and feature a QR code to facilitate data entry and minimise errors.

• Since 30 July 2020, traditional payment slips – namely payment slips with a reference number (BVR) and red payment slips (BV) – have been gradually 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 that has been in use in Switzerland since 30 July 2020. Designed to modernise the Swiss payments system, it enables invoices to be processed entirely digitally, without any change in medium, thereby offering an efficient, convenient and automatic payment method; all the more reason why b-sharpe offers its customers the QR-invoice for their money transfers!

Good to know: The QR invoice does not replace paper invoices. On the contrary, it simplifies the process, as there is no change in medium between invoicing, dispatch and the payment order. All the recipient needs to do is scan the QR code and confirm the payment.

Structure of the QR invoice

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

In addition, the payment section is divided into two distinct parts: 

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

This final section is essential as it allows the invoice recipient to quickly verify the validity of the payment details contained in the QR code, or to enter the payment manually if necessary.

Two types of QR invoices

There are currently two versions of the QR invoice, each designed for a different purpose:

• the QR reference, which corresponds to the former BVR reference and uses the same reference numbers (thus facilitating a smooth transition), and which is limited to use in Switzerland and Liechtenstein;
• the Creditor Reference (SCOR), which serves the same purpose 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 customers. SCOR, however, requires that the IBAN be used at the same time.

How QR-invoices work: what changes are needed?

During the transition period from traditional red and orange payment slips to QR invoices, businesses have the option of using both methods. However, it is advisable to start adapting your company’s practices now to the way QR invoices work, as they are becoming increasingly widespread.

It is therefore advisable to update your invoicing and payment software as soon as possible, and to ensure that your data entry forms include both versions of the QR invoice. To be able to read and process QR invoices seamlessly, you will also need to update the software and hardware of your scanning and reading platforms.

The benefits of QR-invoicing

Whether you are the sender or the recipient of the invoices, QR invoices offer a number of benefits.

The benefits of QR invoices for issuers are as follows:

• invoice processing is simplified overall (fewer manual tasks);
• printing payment slips on white perforated paper (no need to order pre-printed forms);
• all payment details are 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 debt recovery;
• Fields relating to the amount or the payer may be left blank.

The benefits of QR invoices for recipients are as follows:

• invoice processing is simplified overall (scanning the QR code replaces manual data entry);
• the validation of payment details is made easier and faster thanks to the text data in the payment section;
• You can choose your preferred payment method (at a branch, via online banking or via mobile banking).

How do I generate a QR invoice?

QR invoices have the advantage of being easy to generate and print on a computer in just a few steps. The issuer simply needs to adhere to a few formatting requirements, in particular the position of the QR code within the payment section. 

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

By enabling financial transactions to be simplified, streamlined and standardised through full digitalisation, the introduction of QR invoices offers numerous benefits for Swiss businesses. All the more reason to implement the necessary changes for processing these digital payment slips without delay!