Australian Businesses Turn to QR Code Payments to Save on Card Fees

Created on 28 October, 2024 • Use Cases • 149 views • 2 minutes read

With QR code payments on the rise, Australian businesses are finding new ways to sidestep card fees. The New Payments Platform (NPP) is helping make these transactions seamless and efficient.

QR Code Payments Gain Popularity Among Australian Businesses

In an effort to reduce the rising costs linked with traditional card payment fees, many Australian businesses are embracing QR code technology. By using QR codes for payments, businesses can significantly cut down on the transaction fees usually charged by credit card companies, providing both merchants and consumers with an affordable and convenient payment experience.

This shift has been bolstered by the New Payments Platform (NPP), which allows for real-time, bank-to-bank payments. Through NPP, QR code transactions are fast and seamless, which is ideal for small and medium-sized businesses looking to minimize costs while improving customer service. The real-time capability of NPP also ensures that transactions are settled instantly, unlike the delays often experienced with card payments.

Recent Adopters Lead the Way

Chemist Warehouse, one of Australia’s leading pharmacy retailers, recently introduced QR code payments in its stores. The decision was motivated by the need to reduce payment costs and offer customers an additional payment method that’s easy and fast. Vodafone, Muji, and other popular retail brands have also integrated QR codes into their payment options, signaling a broader trend in the industry.

These businesses are using QR code payment systems to simplify the checkout process. Rather than relying solely on credit cards or cash, consumers can simply scan a QR code to initiate a direct bank transfer. This provides an alternative to card networks and helps reduce the additional fees that often burden smaller retailers.

Benefits of QR Code Payments with NPP

One of the primary benefits of QR code payments is their cost-effectiveness. Traditional credit card processing fees can range from 1% to 3% per transaction, which adds up over time—especially for businesses operating on thin margins. QR code payments powered by NPP bypass these card networks, significantly reducing the fees associated with each transaction.

Additionally, QR code payments are convenient for consumers. Customers can complete payments directly from their bank accounts, without needing to carry cash or worry about card limits. The simplicity of scanning a QR code makes it an attractive option for a wide range of businesses, including retail shops, cafes, and service providers.

Looking Forward

The growing popularity of QR code payments is reshaping how Australian businesses handle transactions. With the support of the New Payments Platform (NPP), the shift away from traditional card payments is gaining momentum, especially as companies strive to find cost-effective solutions in a competitive market. For smaller businesses, in particular, the adoption of QR codes represents an opportunity to modernize payment systems and improve their bottom line.

As more consumers become familiar with this payment method, the trend is expected to continue, further reducing the reliance on traditional card-based systems. By adopting QR code payments, businesses can benefit from lower transaction costs, faster processing times, and a more streamlined customer experience.