Chemist Warehouse has introduced a new way for customers to pay while earning cashback and rewards. The pharmacy and retail giant said the move was an Australian first for in-store experiences and tackled the longstanding problem of card surcharging.
Customers can already pay by QR code, rather than by card or tapping the terminal, at the checkout. This is known as Pay By Bank and allows customers to bypass fees charged by banks and card issuers, such as Visa and Mastercard.
Now, Aussie customers will also be able to earn cash back and rewards. Through a partnership with Banked and ShopBack, customers can use a QR code to Pay by Bank via the ShopBack app.
Chemist Warehouse founder Jack Gance said adding ShopBack was a “natural evolution” of its plan to introduce Pay by Bank technology and reduce the cost of transactions for customers.
“We are a business built on providing great value for everyday Australians, and it is important that we have a competitive, low-cost payment system,” Gance said.
“The simplicity, security, and low cost of Pay by Bank, layered with ShopBack’s Cashback rewards, meets our business objectives and gives our customers greater choice and value.
“We are proud to lead the retail industry with this innovative, all-in-one solution.”
Banked CEO and co-founder Brad Goodall described the move as a “leading global use case of payment and loyalty working together”.
The discount pharmacy brand spends more than $15 million in payment fees each year, which it said it does not pass on to consumers.
Credit and debit card transaction costs have come under the spotlight recently, with the government announcing plans to ban debit card surcharging from January 1, 2026.
Analysis of Reserve Bank of Australia (RBA) data found card surcharges were costing Aussies $960.26 million every year.
How does Chemist Warehouse’s new payment method work?
The new payment method is now available at every Chemist Warehouse payment terminal across Australia.
Customers can scan the QR code on Chemist Warehouse’s Quest payment terminals to Pay by Bank via the ShopBack app.
By opting to use Pay by Bank, customers can avoid payment fees and make direct bank payments.
Customers can connect Banked’s Pay by Bank by selecting ‘Securely Add Bank Account or PayID’ within the ShopBack app.
After enabling ‘PayTo’ in their banking app, all future payments through ShopBack Pay can be deducted from their chosen bank account.
QR code payments to become more widespread
Chemist Warehouse is the first business in Australia to become QR codes and a rewards program.
But many other businesses have already introduced QR code payments for customers and more are expected to follow suit.
RMIT finance expert Dr My Nguyen said the aligned with global trends where QR code payments were becoming increasingly popular, such as in Southeast Asia and India.
“In Australia, several major retailers have already adopted QR code payment systems. Muji, Vodafone, MJ Bale and L’Occitane have integrated QR code payments through ePay,” Nguyen said.
“Additionally, Commonwealth Bank, National Australia Bank, Coles and Woolworths have partnered with Eftpos to support the rollout of a new eQR payment system.
“As more businesses recognise these benefits, we can expect wider adoption of QR code payments in the retail sector.”
This article was originally published by Yahoo Finance on 30th April 2025. View original.
