Dive Brief:
- American Express expanded its tie to tech titan Apple by extending its redemption options via Apple Pay, the card giant said in a press release Tuesday.
- The new feature lets American Express cardholders redeem points they’ve earned using their Amex cards by selecting Apple Pay at checkout for a purchase, the company said. The option will be available online or via the digital wallet’s app.
- “Card members want rewards that fit naturally into how they shop and spend,” Lisa Kalhans, Amex’s executive vice president for U.S. consumer cards, said in the release. “We’re making it easier than ever for card members to use membership rewards points on the purchases they make every day.”
Dive Insight:
New York-based American Express is building on a partnership with Apple that reaches back to 2014, when Amex was a launch partner for Apple Pay in the U.S., according to an Amex spokesperson. Of course, to use the new feature, Amex card holders must first add their card to Apple’s digital wallet.
The move is part of Amex’s efforts to integrate more businesses into its loyalty redemption process. In May, American Express also enabled its cardholders to use their rewards points toward apparel, trading cards and other collectible purchases offered by the global sports company Fanatics.
For its part, Cupertino, California-based Apple has been delving deeper into payments. Last month, the iPhone maker said it would add a tap-to-share function to its digital wallet later this year to let shoppers with its devices share data, such addresses or loyalty program details, with a merchant.
As American Express tries to lure consumers deeper into its card offerings via Apple, it’s recovering from the loss of another major digital partner: Amazon. In March, the e-commerce behemoth announced it would use Mastercard and U.S. Bank for two new credit cards aimed at small business owners, ending an eight-year tie to American Express.
Amex’s first-quarter net income jumped 15%, over the year-earlier period, to $2.97 billion. The company partly credited that growth to increased spending among Gen Z and millennial customers. The two cohorts spent 38% and 13% more during the quarter, respectively, compared to the prior period.
