Discover, Apple Pay Get Together for Rewards Redemption

October 16, 2024         By: Steven Anderson

Recently, we heard about loyalty program fatigue, and that the only way to beat this menace was to make rewards programs more directly relevant to the end user. Discover is recently making a push in that direction itself by offering more options, and one of the biggest is a new connection to Apple Pay.

Now, Discover card users with the Cashback Bonus program will be able to take those rewards and channel them directly into their Apple Pay accounts via a statement credit. Discover is actually the first major credit card offering to allow users to redeem rewards after a purchase is made through Apple Pay, so that might catch some significant attention.

There are some caveats here, though—there generally are—that will call for some attention. First, users need to have both a Discover card and Apple Pay, and the card needs to be added to the Apple Pay account. Then, users need the Discover Mobile app, at least version 8.9.0 of it or better, and users also need a rewards balance that’s higher than the purchase amount intended.

Then, once users make a qualifying purchase through Apple Pay with that Discover card, users just select the “tap for details” option under the redemption message from Discover that will show up in the Apple Wallet function. After that, it’s as easy as tap to redeem, and you’ve got the statement credit.

Considering that people are actually starting to get tired of loyalty programs, it really is important to make rewards programs both easy and convenient where possible. They also have to be relevant to survive, but that’s a different matter.

Offering rewards programs that hit users where they live is important, and by allowing the bonus program results to go to a mobile payments app as readily as they go to a credit card, that’s the kind of thing that should better keep users in the fold. Discover has always been something of an also-ran alongside Visa and Mastercard, even compared to American Express.

A measure like this, however, should add some extra relevance, and encourage the current market to stick around. Will it draw in new users? Probably not many, but holding on to market share is a vital function too.