Apple Reportedly Preparing Holiday Launch of Apple Pay Loyalty Rewards Program

passbook_icon_ios_8Apple may have its rumored loyalty rewards program ready for the holiday shopping season, claims Bank Innovation. The loyalty program originally was thought to be launching alongside "Apple Pay 2.0" in October 2015, but recent reports suggest Apple may be pushed it ahead by a year due to merchant demand.

The loyalty program looks like it will come this year, based on Digiday’s timetable. This was unexpected — many had assumed the program would wait until the launch of Apple Pay 2.0, tentatively scheduled for October 2015. It looks like market demand pushed the timetable up to this holiday season, which my sources within the retail industry have said for sme time is “super unlikely.”

A previous report from Digiday, described as being "pretty accurate" by Bank Innovation sources, claims Apple plans to monetize its mobile payment system by integrating iAds with Apple Pay. This iAds portion of the loyalty system allegedly will use iBeacons and Bluetooth LE to push targeted ads with a "tap-to-buy" button to customers while they are visiting a participating merchant.

One way they’ve [Apple] thought up is, say you’re in a Duane Reade, hypothetically. You get a push notification from Pepsi that they’ve worked out a deal with Duane Reade that you can get a free case of Pepsi. Just pick it up and use Apple Pay at the counter.

Apple Pay officially launched yesterday and is compatible with major payment network, including American Express, MasterCard, and Visa. In-store NFC payments will require the iPhone 6 or iPhone 6 Plus, while those devices and the new iPad Air 2 and iPad mini 3 will be able to make online purchases with Apple Pay.

Related Roundup: Apple Pay

Top Rated Comments

Patriot24 Avatar
125 months ago
If it isn't immediately obvious based on what we've seen in the last 24 hours and now this news, Apple Pay is the most important thing Apple did this year.
Score: 16 Votes (Like | Disagree)
slrandall Avatar
125 months ago
Can't complain about free

Where were you during the whole U2 debacle?
Score: 8 Votes (Like | Disagree)
Cougarcat Avatar
125 months ago
Push Notification ibeacon ads sounds super annoying and reminds me of advertising in almost any dystopian movie...hopefully you can disable it.
Score: 8 Votes (Like | Disagree)
scottwaugh Avatar
125 months ago
"This iAds portion of the loyalty system allegedly will use iBeacons and Bluetooth LE to push targeted ads with a "tap-to-buy" button to customers while they are visiting a participating merchant."

As long as this is "Opt In" I have no problems with this...start spamming me with ads whenever I walk into a store and I'll completely stop using it and disable it in the phone. (still think iAd is a cancer Apple needs to remove before it gets too big and too profitable) JMHO...

WRT the incentives, sounds like a great idea - although I think most folks want to use it already...besides cash, its the only relatively secure way we have of paying for things in the U.S..
Score: 6 Votes (Like | Disagree)
0970373 Avatar
125 months ago
I would love to see apple make an android apple pay app for phones that support the needed hardware. This would help spur the end of the compromised card once and for all. I just had to get two new cards thanks to home depot. This is getting crazy.
Why would they do that when the point is to get people to buy iPhones.
Score: 4 Votes (Like | Disagree)
Oli20 Avatar
125 months ago
Hmmmm, I will be interesting how this works because at first blush ads popping up on the phone would not be welcome, at all.
Score: 4 Votes (Like | Disagree)

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