QR code technology: How a failed innovation became an essential technology

In 1994, Masahiko Hara, an engineer at Denso Wave, invented quick response codes a better, faster, stronger version of the barcode. It was quickly adopted by the manufacturing and warehousing industry, aiding in the tracking of automotive processes and parts, where it still remains king today.

Because QR codes are two-dimensional (2D) they can store information on parallel and perpendicular planes. This expands the limit of the amount of information they can hold (7,000 characters) and speeds up code reading by 10X compared to barcodes, so it’s easy to see why it was warmly embraced.

The use of QR codes later expanded in big ways, including the facilitation of cross-border mobile payments, aiding in transportation accessibility efforts, and enabling Amazon’s cashier-less retail model. But, until recently, you would have been hard-pressed to find wide-spread use of QR code technology, let alone at your local brick-and-mortar.

There are clear differences between a QR code and a barcode that make both appealing, but they sometimes work together for brick-and-mortar applications. Unlike 2D QR codes, barcodes are one-dimensional (1D), meaning they store information in parallel lines and spaces. This limits the amount of code they can hold (20–25 characters) curbing efficiency for scanning in bulk.

QR codes may have been invented as a more efficient alternative to barcodes, but for small businesses, tech that isn’t complex still has its place. Some business owners prefer barcodes over QR codes, especially for products that don’t require data collection. Barcodes are cost-effective, readily available and require few equipment updates.

There are also ways to combine QR codes and barcodes to provide more data to the customer and enable better tracking behind the scenes. Dutch supermarket Albert Heijn, added an extra layer of transparency to their customer’s shopping experience. In addition to the barcode scanned at purchase, QR stickers were added to some of their products allowing shoppers to scan product codes, giving Albert Heijn visibility into their production chain. 

And it wasn’t until the 2010s that QR codes had a brief heyday in consumer-facing ways—especially in the advertising industry when QR utilization became front and center in magazine ads, subway terminals and billboards. The exact reason for the sudden rise in QR code use within the advertising industry is about as unclear as the descent.

Trying to explain the spike, Bloomberg suggests it could have been due to the fact that including a QR code on an ad gave “the appearance of being tech-savvy.” They also point to something similar about today’s use of QR codes: Advertisers wanted another way to connect with consumers on a digital plane. At what point, then, did they lose favor?

During their 2010 advertising renaissance, QR codes started making (sometimes peculiar) moves in an upward trend. They were scanned by a whopping 1 in 6 Canadian smartphone users in 2011. Some people even put QR codes on their loved ones’ gravestones. 

Then, the great disappearing act happened. Although they (kind of) caught on within the marketing and advertising industries, they were quickly dismissed as a fad. This could have been due to poor implementation—or maybe people needed time to process their various mishaps and security concerns.

In the end, they failed to go mainstream because:

• They were seen as a gimmick: In 2012, known for their elaborate corn mazes, the Kraay Family Farm in Alberta, Canada set a then-Guinness World Record for the largest QR code. In an interview with ABC News, Rachel Kraay told reporters, “We were just sitting around reading magazines and stuff when we saw one of the QR codes on the cover." The idea came together as a 15-acre maze. When scanned, the code took you to the farm’s website.
• They fell prey to security concerns: In 2015, QR codes got their fair share of flack after a ketchup bottle blunder. Heinz in Germany placed a QR code on some bottles leading consumers to a contest on their website. After Heinz failed to renew its custom URL registration, an adult content website bought it, leading those who scanned Heinz’ code to their website instead—drawing criticism for consumer use of the technology.
• They were exploited by scammers: In 2018, a QR code scanner app scammed iOS users out of $80,000 a month. The scam was a “subscription trap,” convincing users to sign up for a $156/year subscription. The pricey sign-up offer supposedly offered those who downloaded it unlimited folders, no ads, batch scanning and more. However, the app often redirected users to irrelevant Amazon links and, sometimes, it didn’t work at all.