FinTech News
American Express Latest to Allow Apple Pay Rewards Redemptions
Amex customers have a new way to redeem their Membership Rewards points toward purchases.
About Amex’s Apple Pay Rewards Update:
American Express customers with a Membership Rewards-earning card can now choose to redeem their points directly in Apple Pay. This can be done when cardholders are shopping online or in an app via an iOS device. At this time, the Apple Pay reward redemption option is only available to U.S. Amex cardmembers.
To use this feature, after choosing Apple Pay and an eligible Amex Membership Rewards card at checkout, customers can tap the “Use Rewards” option. From there, cardholders will be able to see their available rewards balance and can enter a dollar amount for their redemption. For example, a $70 purchase would cost 10,000 Membership Rewards points. However, currently, it seems as though members can only enter a USD amount to redeem rather than directly setting the number of points.
Credit card reward redemptions in Apple Pay debuted in iOS 18 back in 2024. At the time, Discover (which is now owned by Capital One) was the only domestic bank to offer the integration.
What They’re Saying:
Announcing this new feature, American Express’s EVP of U.S. Consumer Cards Lisa Kalhans stated, “Card Members want rewards that fit naturally into how they shop and spend. With this launch, we’re making it easier than ever for Card Members to use Membership Rewards points on the purchases they make every day.”
Meanwhile, VP of Apple Pay and Apple Wallet Jennifer Bailey said of the addition, “Users want flexibility and choice when shopping online, and we’re excited to work with American Express to bring Card Members a powerful new way to redeem rewards when checking out with Apple Pay. The feature makes it incredibly simple and convenient to use points with the seamless, secure experience users know and love from Apple Pay.”
My Thoughts:
Although I love the idea of this, alas, redeeming Membership Rewards points in this fashion is not the best value for cardholders. From my test, it looks as though you’ll get 0.7¢ per point with this option, which matches what you’d get if you used the points on Amazon (and is at least higher than the 0.6¢ valuation for statement credits). Meanwhile, thanks to my Schwab Platinum Card, I could instead get 1.1¢ per point by redeeming them toward a Schwab brokerage account deposit. And, of course, those seeking the absolute highest value will want to research Amex’s travel transfer partners and find a worthy redemption through them.
Having said all of that, for those who are just making a small purchase and want the dopamine hit of getting their purchase “for free,” it is cool that they can now tap their rewards in such a simple way.
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