Apple is expanding its digital payments ecosystem by allowing eligible U.S. shoppers to redeem American Express Membership Rewards points directly through Apple Pay, giving cardholders a new way to pay for everyday purchases without using cash or credit.
Apple brought a new rewards redemption feature to Apple Pay, allowing eligible American Express cardholders in the United States to use their Membership Rewards points to pay for purchases made through the mobile wallet. The feature enables customers to select “Pay with Points” when checking out with Apple Pay in participating apps and online merchants. Instead of charging the full purchase amount to their credit card, users can redeem accumulated Membership Rewards points to cover all or part of the transaction.
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The move marks another step in Apple’s broader strategy to make Apple Pay a more versatile digital wallet by integrating loyalty and rewards programs directly into the payment experience. It also gives American Express cardholders an additional redemption option beyond travel bookings, gift cards, statement credits and merchandise.
Under the new system, eligible users who have linked an American Express card enrolled in the Membership Rewards program to Apple Pay will see the option to redeem points during checkout. This is where Apple Pay is accepted online or in supported mobile applications. The redemption process takes place within Apple’s existing payment interface, allowing customers to complete purchases without leaving the checkout screen.
American Express said the feature is designed to provide greater flexibility for customers who want to use rewards for everyday spending rather than saving points exclusively for travel-related purchases. The company has increasingly expanded redemption options in recent years as competition among premium credit card issuers has intensified.
The announcement also comes as major payment providers compete to offer customers more value through integrated rewards ecosystems. Credit card companies have increasingly focused on flexible redemption programs that allow users to redeem points on everyday purchases rather than limiting them to airline tickets or hotel stays.
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The feature is currently available to eligible U.S. American Express consumer and business cardholders participating in the Membership Rewards program. Standard Membership Rewards terms and redemption values continue to apply, and eligibility may vary by card product and merchant.
For Apple, the update further reinforces the company’s strategy of integrating financial services into its hardware and software ecosystem. For American Express, it provides another avenue to increase the everyday utility of its rewards program as digital payments continue to replace traditional card transactions. The rollout highlights how technology companies and financial institutions are increasingly collaborating to simplify payments while giving consumers more ways to use accumulated rewards in their daily spending.