Australia’s largest pharmacy retailer, Chemist Warehouse, is to introduce a QR code payment system for its customers.
This new payment method allows customers to scan a QR code, which links them directly to a payment prompt where they can enter their banking details, eliminating annoying fees.
Customers need their phone to use this feature called ‘Pay by bank’. No account or separate app is required for this.
To use the new method, customers simply take a photo of the displayed QR code on the payment terminal, click on the link and authorize the payment by tapping a button on their phone
The money is transferred immediately.
Traditional payment options, such as cash, card and payments via telephone or Apple Watch, remain available.
The QR codes are expected to be rolled out in-store and online early next year.
RMIT financing expert Dr. My Nguyen explained that the QR payment method was a cost-saving strategy for Chemist Warehouse.
“It is a strategic move to avoid the high costs associated with card surcharges, which amount to millions annually,” Dr. Nguyen told us. 9News.
Australia’s largest pharmacy chain, Chemist Warehouse, is to introduce QR code payment for its customers
‘Known as ‘pay by bank’, this method allows customers to make direct payments from their bank account by scanning a QR code, bypassing intermediaries such as Visa and Mastercard.
It comes as retailers across the country face a decline in cash payments and an increase in card use, with both customers and businesses facing transaction fees.
She added that the method also reduced the risk of fraud compared to credit and debit card payments because the information was encoded in the QR codes.
Dr. However, Nguyen said there are some drawbacks to the QR code payment method.
QR codes rely on an internet connection to work, which means it may not be a reliable payment method in areas where internet coverage is weak, including remote and rural areas.
Additionally, customers may be at risk of scanning fraudulent QR codes, which can lead to unauthorized transactions.
She added that customers may also be hesitant to adopt a new payment method if they are used to paying in cash or using their physical card.
A financial expert explained that the QR payment method was essentially a cost-saving measure for Chemist Warehouse as it would cut out intermediaries such as Visa and Mastercard.
Chemist Warehouse will join a list of other companies in Australia that have integrated QR code payments, including Muji, Vodafone, MJ Bale and L’Occitane.
The Commonwealth Bank of Australia, National Australia Bank, Coles and Woolworths are also working with Eftpos to roll out a new e-QR payment system.
Dr. Nguyen said QR code payments could soon become commonplace in businesses across the country.
“This move is in line with global trends where QR code payments are becoming increasingly popular, such as in Southeast Asia and India,” said Nguyen.
“As more companies recognize these benefits, we can expect to see broader adoption of QR code payments in retail.”