The pharmacy and retailing giant pays $15 million in transaction costs every year. Now it has signed on to a new NAB-backed system that circumvents them.
Chemist Warehouse, the pharmacy and retailing giant headed for a merger with ASX-listed Sigma Healthcare, is attempting to circumvent big credit card fees by introducing a new way to pay – using QR codes.
“So, from our point of view, it is important we have a competitive, low-cost payment system. That means we can provide a better service, and a better price to the consumer,” Mr Gance said of the new system.This new way to pay – which will be enabled in Chemist Warehouse stores and online early next year – has been created by Waave. The start-up was acquired this week by Banked, another fintech based in the United Kingdom and backed by National Australia Bank and Citi.
Eftpos cards also shift funds directly between a customer’s and merchant’s bank. However, many customers have set cards to default to Visa and Mastercard, especially when using their mobile phones to pay.Pay by Bank gives merchants more control and enhanced functionality compared to accepting a card. By creating a direct relationship with the customer, retailers can add loyalty plans alongside the payment.
Ben Zyl, CEO of Waave, left, with Chemist Warehouse’s Jack Gance, and Brad Goodall, CEO of Banked, right, in Melbourne this week.“With the volume we do, we are paying more than $10 million a year to the card companies for the privilege of them doing the transactions for us. Even though we don’t surcharge, we have to cover the cost – so that is built into the margin that we charge.”Chemist Warehouse is planning an $8.
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