Discover today announced the launch of a new Apple Pay feature that will let Discover cardholders use their Cashback Bonus rewards to pay for Apple Pay purchases.
To use the feature, customers make a qualifying purchase with Apple Pay using a Discover card, select "Tap for Details" in the Wallet app and then tap "Redeem" to add the Cashback Bonus as a statement credit in the amount of the purchase.
"Cashback Bonus redemption through Apple Pay can happen in just two touches for Discover cardmembers," said Szabolcs Paldy, vice president of e-business for Discover. "We are committed to providing simple and valuable solutions to our customers wherever and whenever they need them. Customer experience hinges on embracing mobile-first technologies like Apple Pay, and this new ability will make Cashback Bonus redemption even easier and more convenient for our cardmembers."
Using the new Cashback Bonus feature requires a Discover card added to Apple Pay, the Discover Mobile app, and a rewards balance higher than the purchase amount. Discover, like many credit card companies, offers points with qualifying purchases that can be redeemed for rewards or cash back bonuses.
Discover card users can already redeem their Cashback Bonus points for statement credits or as deposits into a bank account, so technically it was already possible to pay for Apple Pay purchases with Discover points.
It's not entirely clear what the benefit of the new feature is, but with the two-tap redemption method, it may be easier for users to redeem rewards using this method.
Qualifying purchases include those over $1 made with Apple Pay. Discover says that T-Mobile customers will not be able to use the feature unless connected to a Wi-Fi network.