September 20, 2023, 1:02 pm | Read time: 4 minutes
In summer 2022, Kaufland introduced a new system with the hand scanners “K-Scan,” allowing customers to move through checkout more quickly. In 2023, another innovation follows: Kaufland Pay. This is a completely new payment method that operates without cash, bank cards, or the internet.
Until now, shopping at the supermarket could typically be paid for with cash, bank cards, or even mobile phones. After an initial test phase, Kaufland, in cooperation with Bluecode, has launched another payment method integrated into its app. The unique aspect of Kaufland Pay: It is designed to work even when users are not logged into mobile internet.
Overview
How Bluecode Works via the Kaufland App
The supermarket chain implements Kaufland Pay together with the Austrian-Swiss company Bluecode and the service provider Payone in its app. As of this week, the new payment method is officially part of the Kaufland Card, the in-house app that also functions as a digital customer card. The nationwide launch of Kaufland Pay follows a trial run available to selected customers in some German stores since May.
Using the new payment method is remarkably simple. Customers register in the app and enter their account details under the appropriate tab. They can then pay for all purchases via the app, regardless of the purchase amount. At checkout, they scan the QR code displayed in the Kaufland Card.
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Kaufland Pay Also Works Offline
As confirmed by Kaufland, the new payment method also works offline when customers are temporarily not connected to the internet. Customers and cashiers can tell that the payment via Kaufland Pay was successful by the color change of the QR code. It changes from black to blue, hence the name Bluecode. “The automatic payment process remains visually traceable on the smartphone screen,” Kaufland told TECHBOOK.
The provider advertises that the Bluecode method can also be used at self-checkout stations. By integrating it into the Kaufland Card, customers can collect bonus points during the payment process without having to scan another card. “The Kaufland Card is intended to stand for an even simpler payment system in addition to an attractive combination of various offers such as extra discounts, coupons, or sweepstakes.”
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Just Another Payment Service?
With the new payment function, the scope of the Kaufland Card, which many users already present for point collection when paying, is expanding. However, it remains to be seen how widely Kaufland Pay will actually be used. There are still people who do not own a smartphone, do not register for the Kaufland Card, or do not want to use their device for payments. The supermarket will simply not reach these individuals with the new offering. Additionally, there are those who already use mobile payment methods like Apple Pay or Google Pay and do not need an alternative where they have to enter their sensitive data again.
Information on Bluecode and Data Protection
Kaufland’s partner Bluecode is a company specializing in finance and payment processes, founded in Austria in 2015. The provider states that it does not store any personal data itself; all data provided during the payment process remains with the licensed bank. “The payment information itself is anonymized and sent to the bank. The entire data transfer is encrypted and meets the latest security standards,” according to Kaufland.
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To protect the payment function within the Kaufland Card, the supermarket relies on securing the function with a security PIN, fingerprint, or biometric facial recognition. “Kaufland Pay thus offers a European alternative to the major American and Asian mobile payment solutions,” said the company’s spokesperson.
Kaufland Pay is not the first customized payment method to use Bluecode. The drugstore chains Rossmann and Müller, the Globus hardware store, and selected companies within the Rewe Group also use the payment method in their apps. Rewe itself has been using Bluecode in Austria since early 2021.