Chemist Warehouse announces major change for customers

Australia’s largest pharmacy retailer, Chemist Warehouse, is set 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 for entering their bank details, eliminating any pesky surcharges. 

Customers will need their phones to use this feature, called ‘Pay by Bank,’ which does not require an account or a separate app. 

To use the new method, customers simply take a photo of the displayed QR code on the payment terminal, click the link, and authorise the payment by tapping a button on their phone 

The funds will be transferred instantly. 

Traditional payment options, such as cash, card, and payments via phone or Apple Watch, will still be available. 

The QR codes are expected to roll out in-store and online early next year.

RMIT finance expert Dr My Nguyen explained that the QR payment method was a cost-saving strategy for Chemist Warehouse. 

‘It’s a strategic move to avoid the high costs associated with card surcharges, which amount to millions annually,’ Dr Nguyen told 9News. 

‘This method, known as ‘pay by bank,’ allows customers to make direct payments from their bank accounts by scanning a QR code, bypassing intermediaries like Visa and Mastercard.

It comes as retailers across the country face a decline in cash payments and a rise in card use, with both customers and businesses slapped with transaction fees. 

She added the method also reduced the risk of fraud compared to credit and debit card payments as the information in the QR codes was encrypted. 

However, Dr Nguyen said there were some drawbacks to the QR code payment method. 

QR codes rely on internet connectivity to work, which means it may not be a reliable payment method in areas where internet coverage is weak including remote and rural regions. 

Moreover, customers could run the risk of scanning fraudulent QR codes, which could lead to unauthorised transactions. 

She added customers may also be hesitate to adopt a new method of payment if they are accustomed to paying by cash or using their physical cards. 

A financial expert explained the QR payment method was essentially a cost-saving measure for Chemist Warehouse as it would cut out intermediaries like Visa and Mastercard

Chemist Warehouse will join a list of other businesses 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 have also partnered with Eftpos to rollout a new e-QR payment system.

Dr Nguyen said QR code payments could soon be commonplace in businesses across the nation. 

‘This move aligns with global trends where QR code payments are becoming increasingly popular, such as South-East Asia and India,’ Nguyen said.

‘As more businesses recognise these benefits, we can expect wider adoption of QR code payments in the retail sector.’