Chemist Warehouse, Australia’s largest pharmacy retailer, is set to introduce a new payment method for its customers – QR code payments. This innovative system will allow customers to scan a QR code that will direct them to a payment prompt where they can enter their bank details without incurring any surcharges.
Customers will need their phones to utilize this feature, known as ‘Pay by Bank,’ which eliminates the need for an account or a separate app. To use this method, customers simply have to take a photo of the QR code displayed on the payment terminal, click the link, and authorize the payment by tapping a button on their phone. The funds will be transferred instantly, providing a quick and convenient payment option.
While traditional payment methods such as cash, card, and payments via phone or Apple Watch will still be available, the introduction of QR codes is expected to streamline the payment process for customers. Dr. My Nguyen, a finance expert from RMIT, highlighted that this new payment method is a cost-saving measure for Chemist Warehouse, aiming to avoid the high costs associated with card surcharges, which can amount to millions annually.
The ‘pay by bank’ method allows customers to make direct payments from their bank accounts by scanning a QR code, bypassing intermediaries like Visa and Mastercard. This not only reduces transaction fees for both customers and businesses but also minimizes the risk of fraud as the information in the QR codes is encrypted.
However, Dr. Nguyen pointed out a few drawbacks to the QR code payment system. Since QR codes rely on internet connectivity to function, they may not be a reliable payment method in areas with weak internet coverage, such as remote or rural regions. Additionally, there is a risk of customers scanning fraudulent QR codes, which could lead to unauthorized transactions. Some customers may also be hesitant to adopt this new payment method if they are accustomed to paying by cash or using physical cards.
Chemist Warehouse will be joining a growing list of businesses in Australia that have integrated QR code payments, including Muji, Vodafone, MJ Bale, and L’Occitane. Major financial institutions like the Commonwealth Bank of Australia, National Australia Bank, as well as retail giants Coles and Woolworths, have also partnered with Eftpos to introduce a new e-QR payment system.
Dr. Nguyen believes that QR code payments could soon become a common feature in businesses across the nation, aligning with global trends where QR code payments are gaining popularity, particularly in South-East Asia and India. As more businesses recognize the benefits of QR code payments, we can expect wider adoption of this payment method in the retail sector, offering customers a secure, convenient, and cost-effective way to make transactions.
