This move looks like a win-win for customers AND Woolies.
๐ Background: Woolworths is Australia's #1 supermarket with around 1,076 stores and 18 million store visits each week.
๐ What happened: You'd think Woolies would want to banish QR codes for good after those check in queues, but nah. From this week Woolies and Big W customers can pay by scanning a unique QR code at the checkout.
๐ What else: Customers can link up their bank cards directly to the Woolies Rewards app, so they can pay and collect points. It ain't just good for the customers, it could reduce payment processing costs for Woolies, too.
๐ก Every time you pay for something on card, the business you're buying from is charged a small merchant service fee. How much that is depends on what kind of card the customer uses and which network processes the transaction.
๐ก The costs can really add up. For example, VISA charges supermarkets like Woolies 0.25% of all transactions on a credit card ๐ธ. Woolies settles more than 1.3 billion transactions each day... So that's a lotta merchant fees!
๐ก By taking card payments off the credit card or Eftpos networks, Woolies could reduce its payment costs and increase its profit ๐ค.
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