Barcode vs. QR Code: Functionalities, Applications, Pros and Cons

On a cloudy morning in June 1974, history was made at a checkout counter. At Troy’s Marsh Supermarket, the first item marked with the Universal Product Code (UPC) or barcode was scanned. This small but revolutionary moment transformed how businesses tracked inventory and processed sales, making operations faster and more efficient.

But as technology advanced and the need for more data grew, traditional barcodes began to show their limits. In 1994, Japanese company Denso Wave introduced the Quick Response (QR) Code, designed to store more information and offer greater flexibility. Today, these machine-readable codes are a staple for inventory management and tracking. 

In this article, we’ll compare barcodes and QR Codes and help you determine the right solution for your needs.

Table of Contents

1. What is a Barcode?
2. What is a QR Code?
3. Key differences between Barcodes and QR Codes
4. When to use Barcodes vs. QR Codes
5. Selecting the right code for your business
6. FAQs

What is a Barcode?

A barcode is a machine-readable code that stores information using a pattern of black parallel lines and white spaces of varying widths. Each pattern represents numbers between 0 and 9, which can be read by a barcode scanner. When scanned, the contrast between the lines is converted into a digital signal, allowing access to the stored data.

Barcodes commonly contain details such as product identification numbers, manufacturer information, expiration dates, and more, making them essential for inventory management and sales tracking.

There are more than 30 kinds of 1D barcodes. The following are some popular ones:

1. Universal Product Code (UPC): Widely used in North America’s retail industry
2. European Article Number (EAN): Commonly used globally (other than North America) in retail
3. Code 39: One of the first alpha-numeric barcodes, used for inventory purposes
4. Code 128: A barcode with higher data density, used in the drug and medical equipment industry
5. Interleaved 2 of 5 (ITF): A numeric-only barcode suitable for warehousing and shipping
6. Codabar: One of the older barcodes, still used in library management
7. GS1 DataBar: A smaller barcode that can store more information in less space.

Let’s look at the application of these barcodes in more detail.

Applications of 1D barcodes across industries

Retail and groceries

Barcodes were invented to facilitate retail store order processing, simplify check-out, and reduce manual errors. They are still widely used today to identify products using UPC or EAN codes with their unique GTIN. However, there’s an ongoing effort to slowly replace them with QR Codes.

Inventory and warehouse management

Warehouse management involves several moving parts. 1D barcodes are essential in improving operational efficiency. Warehouses use floor labels to make it easier to cycle count the inventory. 

These labels are scanned every time the inventory moves to different locations. This data is then collected in a centralized warehouse management system. Barcodes make it easier to track your products and reduce operational errors.

Shipping and transportation

Third-party logistical companies (3PLs) rely heavily on barcodes to manage their fulfillment services effectively. They mainly use barcodes to track packages, oversee inventory, fulfill orders, and manage returns. Shipping barcodes are helpful to ensure accurate tracking throughout the supply chain. They improve delivery times and customer satisfaction.

Library management

Barcodes are a staple in libraries. They store details like title, author name, genre, etc. Librarians use barcodes to identify misplaced books and manage shelves. 

They also use barcodes to manage the circulation of books effectively. Barcodes are also used on library cards. This enables readers to also access audiobooks and ebooks through apps like Libby.

Medical sector

Barcodes are used for patient identification, medical administration, tracking medical assets, and specimen collection. Hospitals also use Barcode Medication Administration (BMA) to cross-verify barcoded patient wristbands and administer correct dosages.

Advantages of barcodes

1. Simplicity and ease of implementation: Barcodes are extremely easy to use and implement. You easily train your employees to use barcode scanners. Additionally, they require minimal set-up and can be up and running in weeks. They also easily integrate with existing systems, ensuring quick deployment.
2. Cost-effectiveness: Barcodes are economically viable. Printing barcodes is cheap and can be done using standard printers as well. Moreover, barcode scanners are readily available and affordable. This makes it an accessible solution for businesses of all sizes.
3. Quick scanning: Because of their simple and linear design, barcodes can be scanned very quickly. The data scanned by the barcode is also instantly available on a central system. This gives real-time visibility into your inventory data, ensuring higher productivity and fewer stock-outs.

Disadvantages of barcodes

• Limited data capacity: 1D barcodes are linear, which limits the data they can store. Typically, they can store data up to 12 alpha-numeric or 20 numeric characters, which makes them great for storing basic inventory information. However, anything more complex needs to be stored in your external database. This means you cannot access the additional data on the go.
• One-dimensional scanning: One thing that significantly slows down the scanning process is one-dimensional scanning. Barcodes require you to hold the scanner at a certain angle to allow proper scanning. Using a barcode scanner can also lead to repetitive strain injury (RSI).
• Prone to damage: 1D barcodes are more susceptible to damage and misprinting. They also don’t have error-correction capabilities. This means that if a barcode is damaged, it can’t recover the missing data, rendering it useless. Moreover, it can’t be scanned with low-contrast lights or if it’s obscured.
• Slowly being phased out: After almost half a century of organizing the inventory, barcodes are being slowly replaced by QR Codes. GS1, a global non-profit that oversees barcodes, has come up with Sunrise 2027. This mission aims to implement 2D barcodes, aka QR Codes, across industries by 2027. They can store more information that is accessible to retailers and consumers alike.
• Security concerns: Traditional barcodes lack encryption, which can risk duplicating sensitive information. 2D barcodes, such as QR codes, offer a better alternative as they support encryption.
• Dependency on scanners: Barcodes largely require the use of barcode scanners. This can limit flexibility and increase expenses. Moreover, they require proximity to scan properly.

What is a QR Code?

A QR Code is a type of two-dimensional (2D) barcode. It is a ‘Quick Response’ code that can be scanned via a phone or a barcode scanner to display data. It’s essentially a successor of the traditional 1D barcode.

A QR Code is made of differently sized black squares arranged over a white background, forming a pixel-like pattern. They have black and white blocks called modules. These modules encode data in them, which allows the QR Code to be scanned from any direction. The following are the elements that form a QR Code:

1. Position patterns: Located in 3 corners, allow scanners to detect the size and position of the code.
2. Alignment pattern: Smaller squares help in determining the orientation of the code and scan accurately
3. Timing patterns: An alternating pattern of modules that helps with the size of the QR Code.
4. Version patterns: There are 40 versions of QR Codes with increasing data capacity. This pattern identifies the correct version of the code.
5. Format information: Contains information on the error correction
6. Data and error correction: This is where the actual data is stored, along with additional error correction details
7. Quiet zone: The white space around the QR Code helps it differentiate from its surroundings.

Popular Applications of QR Codes

Marketing and advertising

From billboards to digital ads, QR Codes are extensively used for marketing. They are quick and easy to increase your engagement and track it. One of the most memorable uses of QR Codes was Coinbase’s Superbowl ad in 2022. It increased engagement by 6 times and the app jumped from 186th to 2nd place on Apple’s App Store.

Payments

In Asia, QR Codes are increasingly becoming the preferred method for contactless payments. In fact, in China, almost 83% of mobile payments are QR Code-based. You simply scan the merchant’s QR Code with your payment app, like Google Wallet, and make payments within seconds.

Sharing links and multimedia

QR Codes can store way more than numbers. With them, you can instantly share any form of content you want, be it videos, images, or presentations. You can simply paste your links into The QR Code Generator to create codes in minutes. 

Apps like Spotify and Snapchat extensively use QR Codes to allow users to share profiles, albums, songs, or playlists.

Transportation

QR Codes are simplifying travel service interactions. Airlines use QR Codes to share digital boarding passes, and railways worldwide, like Amtrak and Southeastern Railways, use QR Codes for their e-ticking systems. Moreover, Apple Wallet’s QR Codes make it easy to have a scannable QR Code version of your ticket in one place.

Inventory management

Originally used to track automotive parts at Denso Wave, QR Codes are becoming an essential part of inventory management. Because of the GS1 guidelines, QR Codes are quickly replacing barcodes in retail and inventory management. This will make it a whole lot easier for cashiers to scan and track items. Moreover, consumers can have instant access to all the essential information with just a scan.

Event ticketing and registration

To streamline the check-in process, event organizers are shifting to QR-based tickets. This also reduces the for physical tickets and allows for a smoother event organization. Last year, the Paris Olympics 2024 employed QR Code Game Passes to allow entry into the game arena.

Product information

You can put all the information on your product, from allergen information to lab certification (no space gets wasted). Moreover, with GS1-linked QR Codes, you can provide real-time information to your customers. PepsiCo is actively working to create a unique identity for its products.

Advantages of QR Codes

1. Higher data capacity: QR Codes can store a substantial amount of information. They can encode up to 4296 alphanumeric characters or 7089 numerical data. As we touched upon earlier, there are 40 versions of QR Codes, all of varying sizes. As the size increases, the amount of data it stores also increases. 
2. Small physical footprint: The best part about QR Codes is that they can take up a tiny amount of space yet store so much data. A QR Code can be as little as 1cm X 1cm in size. Although the recommended size to be scanned by mobile phones is at least 2cm x 2cm ( which is still very small). This means they can fit in perfectly in a limited space.
3. Error correction capabilities: QR codes have an algorithm built in to correct errors even when they are damaged. The Reed-Solomon algorithm allows QR codes to be scannable even when obscured or damaged. The current QR Codes have four levels of error correction: 7%, 15%, 20%, and 30%.
4. Versatile applications: QR Codes are highly adaptable and can encode a variety of data types. This makes them extremely flexible for deployment across industries, such as restaurants, marketing, inventory management, product packaging, and more.
5. Customizable: Unlike simple black-and-white barcodes, QR Codes are extremely customizable. You can change their colors and shape and add your branding. Moreover, dynamic QR Codes allow you to change the content encoded in the QR anytime you want.
6. Mobile-friendly: With the ability to be scanned with your phone’s camera. QR Codes are very accessible. Currently, all mobile phones are equipped with in-built QR Code scanners. They are one of the fastest and simplest ways to share information.
7. Cost-effective: Generating QR Codes in an inexpensive affair. In fact, it can be completely free. Multiple QR Code generators offer free QR Code generation and customization. 

Disadvantages of QR Codes

1. Requires specific software or apps for customization: You would need to use specific software to create customizable QR codes. This is necessary if you want additional functionalities and data, such as tracking, editing content, and generating scan reports.
2. Prone to smudging, tearing, and distortion: Although they are more resilient than barcodes, QR Codes are also susceptible to damage. Environmental factors or manhandling can lead to distortion, affecting their functionality and making them unscannable.

Barcodes vs. QR Codes: Comparing key features and functionality

We saw how barcodes and QR Codes are widely used across different industries and needs. While they are similar, they differ in design, capabilities, and functionality.  The table below highlights the differences between them: 

Exploration into readability issues

Although QR Codes have better readability than barcodes, it is essential to look at all the factors affecting them. Let us analyze the significant factors that can compromise scanability:

When to use Barcodes vs. QR Codes

Now that we have understood the functionalities and applications of QR Codes and barcodes, you may wonder which one is best for you. As we saw, there are different scenarios where each of these shines.

If your needs are simple product identification, barcodes are your answer. With smaller data requirements and such straightforward applications, they do the job.

However, if you need to encode larger data, opting for QR Codes is a no-brainer. They work best for marketing campaigns, asset tracking, event tickets, and more.

When it comes to managing inventory, analyze your needs and factors. Barcodes can be suitable for a large-scale operation with basic data needs. But beyond that, if you need additional tracking and include complex product information, QR Codes are superior.

Selecting the right code for your business

Barcodes and QR Codes each have their strengths, suited to different tasks. Barcodes are simple and effective for quick product identification and inventory tracking. They’re cost-effective and widely used in retail for basic labeling needs. 

On the other hand, QR Codes can store much more information, like website links or detailed product data. This makes them great for marketing, mobile payments, and sharing extensive details. They’re also easy to scan with smartphones, enhancing customer interaction. 

Choosing between barcodes and QR Codes depends on what your business needs. Understanding your specific requirements will help you select the right tool to improve efficiency and engage customers effectively.

FAQs