Apple announced yesterday that, with iOS 9, it will add retailer branded credit and debit cards to its Apple Pay program as well as support for retailers' reward programs. The tech giant also announced it will add Discover cards to Apple Pay.
To take full advantage of the new features, users will add their participating rewards and store brand credit cards to the Wallet app (formerly Passbook), enabling their use with Apple Pay at checkout.
Among the retailers that will soon be accepting Apple Pay and adding their respective rewards and/or private label card programs this year include BJ's Wholesale Club, Dunkin' Donuts, J.C. Penney, Kohl's, Walgreens and Wegmans. Best Buy, Big Lots, Express, Forever 21 and Trader Joe's are other retailers already accepting Apple Pay, though no announcements have yet been made as to adding the new options.
Photo: Apple
"Providing our shoppers with innovative ways to pay while offering flexibility supports our commitment to delivering a simple and convenient customer experience," said Kevin Mansell, Kohl's chairman, CEO and president, in a statement. "By integrating with Apple Pay in all of our stores, Kohl's customers can choose how they want to pay, whether using their Kohl's Charge or Yes2You Rewards loyalty points, payments are easy and secure."
"Apple Pay is still optional and not yet essential for merchants," Sucharita Mulpuru, an analyst at Forrester Research, told Bloomberg. "Adding loyalty rewards is a first step in building a more integrated mobile wallet."
Apple also announced that Square would introduce a reader this fall that would accept Apple Pay. That will expand Apple Pay to small businesses across the country.