Australia’s biggest pharmacy retailer has announced a new payment method to avoid hefty surcharges.
Chemist Warehouse will introduce QR codes at the checkout for shoppers to make direct payments from their bank accounts without associated credit card fees.
Known as Pay by Bank, all customers need their mobile phone.
They simply take a photo of the displayed QR code on the payment terminal and authorise the payment by tapping a button on their phone.
The funds will then be transferred instantly.
There will be no need to set up an account or use another app.
Other customers will still be able to pay with cards, cash, their phone or Apple watch.
The QR codes will be rolled out in-store and online from early next year.
Chemist Warehouse will introduce a new way for customers to pay – with QR codes
Customers will still be able to pay with cards or cash at Chemist Warehouse
The new system won’t save shoppers any money, but it will potentially save Chemist Warehouse millions.
The pharmacy chain forks out $15 million in payment fees every year and doesn’t pass those charges onto customers.
‘Because we are a discounter, and work on low margins, these transaction costs represent a big part of our potential profit,’ chairman Jack Gance told The Australian Financial Review.
‘So, from our point of view, it is important we have a competitive, low-cost payment system. That means we can provide a better service, and a better price to the consumer,’ he said.
The benefits of QR code payments consumers are ‘significant’, according to RMIT senior finance lecturer Dr My Nguyen.
‘For retailers like Chemist Warehouse, they can substantially reduce transaction fees which can be as high as 1.5 per cent for card payments,’ he told Seven News.
‘These savings can potentially be passed onto consumers in the form of lower prices.’
Chemist Warehouse chairman Jack Gance (pictured) said the new payment system will mean the company can provide a better service and prices to the consumer
Chemist Warehouse will join other companies in Australia including Harris Farm Markets, Baby Bunting, Vodafone, Muji, L’Occitane and MJ Bale who offer payment by QR code.
QR codes are widely used for payments in Asia, including India, China and Thailand.
