Australian shoppers will now be able to pay at Chemist Warehouse using a QR code — meaning they avoid the cost of card surcharges.
QR code payments, known as Pay By Bank, enable customers to make direct payments from their bank accounts, and therefore bypass any fees associated with Visa and Mastercard payments.
RMIT senior finance lecturer Dr My Nguyen said the benefits of QR code payments for the consumer are “significant”.
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“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 said.
“These savings can potentially be passed onto consumers in the form of lower prices.”
Nguyen said the change will also benefit Chemist Warehouse’s operational costs, with the business spending about $15 million each year on card surcharges.
There are potential issues that could arise with the payment method however, Nguyen said, including security problems.
While QR codes are encrypted, Nguyen said there was a risk someone may scan a fraudulent code and pay money to a scammer of cybercriminal.
“QR code payments rely on smartphone technology and internet connectivity, which could pose challenges in areas with poor network coverage,” he said.
Muji, Vodafone, MJ Bale and L’Occitane are among other businesses in Australia which have integrated QR code payments.
Nguyen said the payment method is expected to increase in popularity.
“As more businesses recognise these benefits, we can expect wider adoption of QR code payments in the retail sector,” he said.
Chemist Warehouse has been contacted for comment.