Verifone will be among the first to enable its NFC terminals to support Apple Pay’s upcoming support for customer loyalty cards, the company announced today.
As part of its WWDC announcements on Monday, Apple said that it would soon enable loyalty cards in Apple Pay as it renames the iOS Passbook app “Wallet” to better reflect the addition of payment services since its launch. But before that happens, payment terminal manufacturers will have to flip the switch on support for loyalty cards through their NFC terminals. One of the first companies to do that will be Verifone, one of the leaders in making NFC terminals.
The company announced today that it will enable support for loyalty cards on its MX 915 and MX 925 terminals, allowing six national and global retailers to start accepting loyalty transitions and redeeming rewards through Apple Pay.
“Adding loyalty to Apple Pay will open a world of opportunity for a wide range of merchants to engage consumers and grow their businesses,” said Vin D’Agostino, executive vice president of Commerce Enablement, Verifone. “We are proud to support Apple Pay in expanding contactless payments to include loyalty. This is a powerful reminder of Verifone’s expertise and expansive client relationships, as we continue to simplify payments and enhance customer engagement opportunities for our merchants.”
Verifone didn’t name an names, but we’ve found out that the six retailers include Dunkin’ Donuts, JC Penney’s, Kohl’s, Panera, Wegman’s, and Whole Foods. The last on that list, Whole Foods, is one major retailer Apple didn’t mention during its announcement.
During its announcement on Monday, Apple confirmed some of the first retailers that will support the feature this fall, including: Walgreens Balance Rewards, Kohl’s Yes2You Reward program, Coca-Cola, Dunkin’ Donuts, Panera Bread, Wegmans Food Markets, BJ’s Wholesale Club, and JCPenney.
The loyalty card support will officially arrive for Apple Pay this fall alongside iOS 9 and the new Wallet app.
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Adding the loyalty cards is a big win for consumers and the merchants. The one complaint from some merchants is that Apple Pay prevents them from keeping track of customer data. As a Walgreens and Panera Apple Pay user I present them my card and then pay with Apple Pay but it is a two step process. The payment step is faster and they get their information.
Making it a one step process will make the transaction faster and not deprive the merchant of the information they want in return for the perks they’re willing to give me as a loyal customer.
Of the two terminals mentioned, the MX915 with the NFC reader attachment and accompanying green leds is the best feedback of Apple Pay compatibility.
Also since they are both listed as Customer Facing, necessary for Chip and PIN and Apple Pay they are ideal for merchants.
There are a number of Apple Pay/ NFC supporting terminals that are hidden behind the merchants and not customer facing.
Does Whole Foods even have a loyalty card? I shop there every week and I’ve never heard of one.
I’m still trying to figure out how this is going to work at stores that give discounted prices based on whether or not a customer has a rewards card. For instance, yesterday at Walgreens my total was $24 before the computer registered my rewards card and $16 after. That’s why I don’t like to pay until I see what the total is. Is it going to be a two-step process, where I tap my reward card at the beginning, then again to pay at the end? Or do I trust that tapping at the end will give me the discount, and the amount processed will be different than what I see on the terminal? That also seems like it will slow down the process since it needs to go through the whole list and look for discounts before it completes the transaction.