Chemist Warehouse has recently launched an innovative payment solution in collaboration with ShopBack and Banked that allows customers to pay via QR code, aiming to eliminate surcharges and offer cashback rewards. This initiative marks a notable first for in-store payment experiences in Australia, addressing a long-standing concern regarding card surcharges that consumers face.
Customers can now use the Pay By Bank feature, which lets them make payments directly from their bank accounts. By using this method, shoppers can avoid the fees typically associated with card transactions, including charges from major issuers like Visa and Mastercard.
Through this partnership, Chemist Warehouse customers will not only bypass these surcharges but also earn cashback rewards when they use the ShopBack app for payments. Jack Gance, founder of Chemist Warehouse, described the introduction of ShopBack as a natural evolution in their strategy to reduce transaction costs while enhancing customer value. He highlighted the importance of maintaining a competitive and cost-effective payment system, stating, “We are a business built on providing great value for everyday Australians.”
The simplicity and security of the Pay By Bank option, coupled with ShopBack’s rewards, align with Chemist Warehouse’s objective of offering greater choice to customers. Gance expressed pride in leading the retail sector with this comprehensive solution.
Brad Goodall, CEO and co-founder of Banked, noted that the integration of payment and loyalty systems presents a significant shift in how transactions can benefit consumers. Chemist Warehouse, which incurs over $15 million in payment fees annually—costs not passed onto customers—is taking a proactive approach to mitigating such expenses through this new system.
The conversation around transaction costs has gained momentum, particularly as the Australian government plans to ban surcharges on debit cards from January 2026. Recent analysis from the Reserve Bank of Australia revealed that card surcharges are costing Australians approximately $960.26 million each year.
This new payment method is available at all Chemist Warehouse terminals across Australia. Customers can easily make payments by scanning QR codes on the Quest payment terminals. By adopting this Pay By Bank system, consumers benefit from fee-free direct bank payments.
To take advantage of Pay By Bank, customers will need to connect their bank account by selecting ‘Securely Add Bank Account or PayID’ in the ShopBack app. Once they enable the ‘PayTo’ feature in their banking app, future payments through ShopBack can be automatically deducted from the selected account.
Chemist Warehouse stands out as the first retailer in Australia to implement a QR code system that includes a rewards programme. However, as the interest in QR code payments grows, other businesses are also beginning to integrate similar systems. According to RMIT finance expert Dr My Nguyen, this aligns with global trends, particularly in regions such as Southeast Asia and India. She noted that major Australian retailers, including Muji, Vodafone, and L’Occitane, have adopted QR code payment solutions, supporting efforts for a new eQR payment system alongside collaboration with Commonwealth Bank and NAB.
As more retailers recognize the advantages of QR code payments, their adoption in Australia’s retail sector is expected to widen, enhancing convenience and value for consumers.
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