Can digital wallets store loyalty points?

Loyalty programmes have become increasingly popular among British consumers in recent years. Nearly 80% of people in the UK are now members of at least one rewards programme.¹

Digital wallet loyalty points explained

Loyalty or rewards programmes may help people accrue points and claim promotions, discounts, and cash back as point resemption. Major supermarket chains, fashion brands, and airlines offer loyalty and rewards programmes, and many have their own dedicated apps and digital wallets.

Here are some ways that loyalty points and rewards can also be boosted by using a digital wallet:

• In stores and supermarkets, shoppers may be able to tap the loyalty card stored in their digital wallet to earn or redeem points when buying clothing or groceries.
• At restaurants, diners may allow their loyalty programmes to be linked to digital wallets, helping them claim offers such as buy-one-get-one-free or complimentary home delivery.
• For holidays, travellers can connect their digital wallets to airline or hotel loyalty programmes for available flight or accommodation promotions.
• When online shopping, using digital wallet rewards working with certain retailers can help shoppers earn points with every linked loyalty programme purchase.

Check if digital wallets support loyalty point storage

Not all loyalty programmes can integrate with digital wallets. And not all programmes have built their own apps. It’s best to check this by:

• Exploring the official website of the digital wallet or loyalty programme to search for information about loyalty programme cards, collaborations , and digital wallets.
• Reading online reviews and FAQs to see what others say about a digital wallet’s functionality with popular British loyalty programmes.
• Contacting the digital wallet’s customer support to clarify its level of loyalty programme support. Reaching out to the rewards programme provider may also help.

Another option is to investigate digital wallet alternatives and how they work with favourite loyalty programmes.

Benefits of storing loyalty cards in a digital wallet

Consumers who are members of multiple rewards programmes may find benefits of keeping everything in one place: a digital wallet that stores many loyalty cards may be ideal. Here's why:

• Enhanced security. Plastic cards can be mislaid or stolen. Digital wallets provide a secure place for storing loyalty programme information. Even if a phone containing a digital wallet is lost, the information is protected by encryption, keeping the digital wallet safe.
• Organisation. Physical cards can be easily forgotten. Having all loyalty programmes centralised in one digital wallet eliminates the inconvenience of carrying multiple physical cards. Stored digitally, they are always a click, swipe, or tap away.
• Clear reward totals. Digital wallets typically update loyalty points in real-time. This means users always have an accurate and current view of their rewards balance after making a purchase, helping them track and plan their rewards usage.

Drawbacks of storing loyalty cards in a digital wallet

Managing loyalty programmes successfully means picking the right digital wallet while being aware of the potential downsides. For example:

• Adding loyalty cards to digital wallets may limit the ability to share cards with family members or redeem rewards through other means.
• Not all digital wallets support all loyalty programmes, which may restrict people to certain brands or platforms or require them to maintain a mix of digital records and physical cards.
• People may encounter technical glitches or compatibility problems with digital wallet apps that could affect access to points earnings and redemptions.

Tips to increase digital wallet rewards

Major loyalty programmes and established digital wallets generally work well together, positioning consumers to bolster loyalty points and redeem hard-earned rewards.

To make the most of this collaboration , customers and collaborators may want to:

• Link frequently used loyalty programmes to the digital wallet to consolidate and increase points.
• Update the wallet app regularly to add features and enhance security. Using strong passwords and enabling multi-factor authentication, such as facial recognition or fingerprint scans, can boost safety.
• Back up app data regularly. This may help loyalty points and other important information don’t get lost in the event of a device malfunction or security breach.

How to use loyalty cards on phones

More and more, Britons are using their mobile phones for online shopping instead of sitting down in front of a computer or heading out to the shops. So it makes sense to manage loyalty programmes and rewards by phone too. Here’s how.

• Visit the smartphone's app store and search for a digital wallet that supports loyalty cards. Review privacy and security settings, and install the app.
• Once installed, add loyalty cards. Scan them with the camera or type in the membership numbers.
• Organise the loyalty cards by type — groceries, restaurants, fashion, airlines. Place those used most at the top of the digital wallet.
• In a shop, simply open the digital wallet app and show the stored barcode of the loyalty card at checkout.
• Online, enter the loyalty card number in the relevant field on the retailer’s website to apply any loyalty benefits or collect points.