Australia’s largest pharmacy retailer has announced a new payment method to avoid hefty surcharges.
Chemist Warehouse will introduce QR codes at checkout for shoppers to make direct payments from their bank accounts without fees associated with credit cards.
Known as Pay by Bank, all customers need their mobile phone.
They simply take a photo of the QR code displayed on the payment terminal and authorize 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 application.
Other customers will still be able to pay with cards, cash and their phone or Apple Watch.
QR codes will be rolled out in stores and online starting early next year.
Chemist Warehouse, Australia’s largest pharmacy chain, will introduce a new way to pay for customers: with QR codes
Pharmacy warehouse customers will still be able to pay by card, cash and their phone or watch. Paying with QR code is another payment option
The new system won’t save money for buyers, but it will save money for Chemist Warehouse.
The pharmacy chain shells out $15 million in payment fees each year and does not pass those charges on to the customer.
“Because we are a discounter and work on low margins, these transaction costs represent a large portion of our potential profit,” said President Jack Gance. The Australian Financial Review.
‘Therefore, from our point of view, it is important that we have a competitive and low-cost payment system. “That means we can offer better service and a better price to the consumer,” he said.
The benefits of QR code payments for consumers are “significant”, according to Dr My Nguyen, senior lecturer in finance at RMIT.
“For retailers like Chemist Warehouse, they can substantially reduce transaction fees, which can be as high as 1.5 percent for card payments,” he said. 7news.
“These savings can potentially be passed on to consumers in the form of lower prices.”
Chemist Warehouse president Jack Gance (pictured) said the new payment system will mean the company will be able to offer better service and prices to the consumer.
Chemist Warehouse will join other businesses in Australia, including Harris Farm Markets, Baby Bunting, Vodafone, Muji, L’Occitane and MJ Bale, in offering QR code payments.
QR codes are widely used for payments in Asia, including India, China and Thailand.
