Banked has partnered Chemist Warehouse and payments platform ShopBack, to launch the country’s first in-store “Pay by Bank” experience that also allows consumers to earn cashback and rewards.
The new initiative addresses the growing concern of rising card surcharges — highlighted by recent RBA data showing a 33.3 per cent increase in eftpos debit fees in the last quarter alone, and a 2024 analysis revealing that Australians lose nearly a billion dollars annually to these fees.
Chemist Warehouse is taking a proactive stance to establish a lower cost payment system ahead of an expected move by the RBA to ban debit card surcharging, as outlined in last month’s Federal Budget.
“Pay by Bank” with Cashback at every Chemist Warehouse
Now available at every Chemist Warehouse payment terminal across Australia, the seamless experience combines the speed and security of “Pay by Bank” with the value of ShopBack rewards, all within a single app. The solution enables customers to “Pay by Bank” via the ShopBack app using a QR code on Chemist Warehouse’s Quest payment terminals.
Customers can easily link their preferred payment methods, including Banked’s “Pay by Bank”, to their ShopBack account. By opting to use “Pay by Bank”, customers avoid payment fees at any merchant, and enjoy the convenience of direct bank payments. They can also offset purchases with existing ShopBack Cashback, and earn Cashback on their Chemist Warehouse purchases.
“This is a leading global use case of payment and loyalty working together as one seamless experience for the consumer”, said Brad Goodall, CEO and co-founder of Banked. “We are proud to be partnering with Chemist Warehouse and ShopBack to give Australian consumers better value from their shopping experiences, while also providing Chemist Warehouse with a simpler and cost-effective way to introduce customer rewards.”
“Combining the use of ShopBack’s Cashback was a natural evolution of our plan to implement an in-store ‘Pay by Bank’ solution and reduce the cost of transactions for customers,” added Jack Gance, founder of Chemist Warehouse. “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. 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’s “Pay by Bank” now providing payments with zero additional fees via ShopBack Pay merchants as preferred debit option
Through this partnership, from April 29 ShopBack will also introduce Banked’s “Pay by Bank” as a surcharge-free payment option with zero additional fees within its app as the preferred debit payment method. This means Australians will no longer pay a surcharge on their daily cup of coffee or work lunch at any of the 2,500 merchants where ShopBack Pay is accepted such as New Balance, Chatime, Sushi Sushi, and Sharetea.
“Our business model is built on providing rewarding experiences and value for our users and brand partners,” said Julian Foo, ShopBack’s general manager of Financial Services. “Brands partner with us for increased traffic, and we reinvest that into operations and Cashback for users. Introducing ‘Pay by Bank’ allows us to enhance our offerings further, bridging the online and in-store ecosystems. This gives our users the flexibility of choice in payments. For brands, ShopBack’s rewards and demand generation tools empower us to drive our partners traffic and sales, while helping them better understand their customers.”
Australian ShopBack users can easily connect to 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 seamlessly straight from their chosen bank account.
ShopBack currently partners with 2,500 brands across Australia to give consumers access to Cashback on their daily purchases — from coffee, to clothing, and even petrol.
