September 20, 2016
Sean Claessen is executive vice president for strategy and executive creative director at Bond Brand Loyalty
By Sean Claessen
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I’m not sure how you liken using Apple Pay to disengaging the user from the loyalty process. In the exact same way that a customer chooses to use Visa, MasterCard or old fashioned cash to pay for a transaction, their loyalty data should have been entered into the typical system well before the payment is actually processed, and that data is acquired by the merchant in the same old way – phone number, name, loyalty card scan, whatever the merchant is using to record the id of the user.
What Apple Pay, Android Pay and Samsung Wallet (or Paypal or any other tokenization system) does for the transaction is add a layer of security between the purchaser and the data storage. Which is a good thing.
Merchants don’t generally record loyalty points at the transaction level, that is something that the card itself does if there are points associated with the card (and that also determines the fees the merchants pay to accept the card), but again, the merchant should have their own loyalty data in hand well before this point.
Apple Wallet/Apple Pay also offers merchants the ability to integrate their loyalty directly into the wallet/payments process, and Walgreens is already doing it.
Karen Webster is possibly the most anti-Apple person on this planet, so keep that in mind as well.