Chemist Warehouse Revolutionizes In-Store Payments with Launch of NAB’s Pay by Bank and ShopBack Integration
Chemist Warehouse, one of Australia’s largest pharmacy retailers, is once again leading the charge in customer-centric innovation by introducing a new in-store payment option that promises to reshape the checkout experience. With a firm belief in anticipating future trends and challenging conventional retail practices, co-founder Jack Gance is steering the company toward a more secure, cost-effective, and frictionless payment future.
The newly launched payment method—Pay by Bank—leverages NAB’s (National Australia Bank) latest real-time account-to-account payment technology through Australia’s PayTo infrastructure. It allows customers to pay directly from their bank accounts, avoiding the need for credit or debit card processing. This move not only enhances payment efficiency but also strategically tackles the growing issue of rising card transaction surcharges, which have increasingly affected both consumers and businesses in recent years.
A Future-Ready Payment Ecosystem
Gance, a long-time advocate of aligning retail innovation with evolving consumer expectations, sees this development as a “win-win” for both shoppers and merchants. “I’m pretty passionate about being able to give people what they want,” Gance said. “For payments, that means being easy to use, with no friction, offering a low cost of operation for merchants. Having more payment options means a better service and ultimately, price, for customers.”
Chemist Warehouse’s decision to implement NAB’s Pay by Bank system reflects an ongoing commitment to leveraging cutting-edge technology in ways that deliver both operational savings and better value to its loyal customer base. The payment method, now available at all Chemist Warehouse locations nationwide, works in tandem with the ShopBack app, enabling users to complete transactions seamlessly while also earning Cashback rewards.
“We are proud to lead the retail industry with this innovative, all-in-one solution,” Gance said. “The simplicity, security, and low cost of Pay by Bank, layered with ShopBack’s Cashback rewards, meet our business objectives and give our customers greater choice and value.”
Reducing Costs, Increasing Transparency
Traditionally, card-based transactions have incurred significant processing fees, costs that most consumers may not realize are borne by merchants. These fees can add up to millions of dollars annually for high-volume retailers like Chemist Warehouse. Rather than passing those charges on to customers—as many retailers do—Chemist Warehouse has long absorbed those expenses to maintain its low-price model.
However, in an increasingly competitive retail landscape, every dollar saved can be redirected toward improving services or offering better pricing. By shifting toward account-to-account payments using the PayTo system, Chemist Warehouse is able to cut out the middlemen—namely, card networks and payment gateways—and reduce transaction processing costs substantially.
“As retailers, we really notice the difference,” Gance explained. “It’s millions of dollars extra cost that’s unnecessarily paid out on top of the sale price to process the transaction. I think it’s important that we make an incentive for customers, to make this new method available to them, and explain the benefits as providing a better, safer, cheaper method of making payments.”
This commitment to customer value is a cornerstone of the Chemist Warehouse philosophy. By educating shoppers on how Pay by Bank works and highlighting the advantages, the company hopes to accelerate adoption of this more efficient system.
Seamless Technology Integration with ShopBack
A key component of the new payment system’s rollout is its partnership with ShopBack, a popular Cashback rewards platform used by millions of Australians. Through the ShopBack app, Chemist Warehouse customers can now initiate payments using Pay by Bank directly from their mobile phones. This not only simplifies the checkout experience but also enables customers to earn Cashback on their purchases—adding a further layer of incentive.
Once a customer opens the ShopBack app at checkout, they can use the integrated Pay by Bank function to connect directly with their bank account. The process is facilitated by PayTo technology, which authorizes the payment in real time and securely transfers the funds without delay.
The integration also includes QR code functionality, enabling a fast and intuitive setup. Shoppers can simply scan the QR code displayed at the payment terminal using their phone camera, which instantly triggers the payment flow in their ShopBack app.
This frictionless experience is particularly appealing in the current retail environment, where speed, security, and user control are paramount. Consumers increasingly expect smooth digital experiences, and Chemist Warehouse is stepping up to meet those demands.
Security and Speed: Real-Time Banking Reimagined
Beyond convenience, one of the most compelling aspects of the Pay by Bank solution is its underlying security infrastructure. PayTo transactions are processed entirely within the established banking network, meaning there’s no need to share sensitive card details or third-party information.
Customers benefit from real-time access to their bank account balances, along with immediate payment confirmation. This not only reduces the risk of fraud but also improves budgeting accuracy and financial awareness, as customers can see the transaction reflected instantly in their accounts.
The result is a more transparent and secure payment system, a stark contrast to traditional methods that often involve multiple intermediaries and longer settlement times.
A Broader Retail Shift
While Chemist Warehouse is one of the first major Australian retailers to adopt this comprehensive payment model at scale, its move could serve as a catalyst for broader change across the industry.
Retailers nationwide are grappling with the dual challenge of controlling costs and enhancing the customer experience. Many are now exploring ways to embrace real-time payments, digital wallets, and value-added services to stay competitive. By incorporating a solution that simultaneously lowers fees, simplifies operations, and rewards customers, Chemist Warehouse has positioned itself at the forefront of this shift.
Moreover, the company’s willingness to take a proactive stance rather than waiting for industry-wide adoption reflects its long-standing reputation for disrupting the status quo. From bulk purchasing and discount pricing to data-driven store layouts and private-label product expansion, Chemist Warehouse has consistently prioritized innovations that drive value.
Gance and his team view this latest initiative not just as a functional upgrade, but as a strategic transformation in how retail payments are handled in Australia. As technology continues to evolve, so too will customer expectations—and Chemist Warehouse is committed to staying a step ahead.
“As a business, we’ve always focused on staying relevant by looking forward,” Gance said. “This payment solution is part of a broader vision for what retail should be: fast, fair, and focused on giving people what they want.”
The launch of Pay by Bank with ShopBack Cashback functionality marks another major milestone in the company’s ongoing digital transformation. And for Chemist Warehouse customers, it means a faster, more secure, and more rewarding way to pay—every time they shop.
