American Express adds Apple Pay checkout redemption for rewards points

American Express cardholders can now redeem their Membership Rewards points at checkout by selecting Apple Pay, the company said in a press release dated June 30. The option is available for online purchases and within the digital wallet’s app environment.

“Card members want rewards that fit naturally into how they shop and spend,” Lisa Kalhans, American Express executive vice president for US consumer cards, said in the release.

To use the feature, cardholders must first add their American Express card to Apple’s digital wallet. The move builds on a partnership that dates back to 2014, when American Express was a US launch partner for Apple Pay, an American Express spokesperson told Payments Dive.

The redemption expansion is part of a broader effort by the card network to connect its loyalty program to more everyday spending. In May, American Express enabled cardholders to put rewards points toward purchases from the sports merchandise company Fanatics, according to the company.

Apple, for its part, has been extending its own payments features. In June, the company said it plans to add a tap-to-share function to its wallet later this year, allowing shoppers to share information such as addresses or loyalty details with merchants, Payments Dive reported.

American Express reported first-quarter net income of $2.97 billion, up 15 percent from a year earlier, crediting the growth in part to increased spending among Gen Z and millennial customers, according to Payments Dive.