Walgreens is first United States retailer to link loyalty program to Apple Pay

Instead of requiring customers to scan a barcode from a card or from Apple’s Wallet (formerly Passcode) app, they simply hold their iPhone or Apple Watch close to the point of sale card reader.

Why this matters: Apple is methodically working to make Apple Pay the best way to buy stuff more than a year after its launch, and supporting loyalty programs is another key facet of that strategy.

Users will need to add their Balance Rewards card into Apple Pay via the Wallet (formerly Passbook) app, in the same way they add their credit and debit cards.

The only small drawback is that making a payment requires two taps of your phone or Apple Watch on the contactless reader.

Apple Pay for reward cards works with iPhone 6, 6 Plus, 6s, and 6s Plus as well any Apple Watch running iOS 9 or later or watchOS. “This offering supports our commitment to removing friction and enabling a simple and convenient customer experience”.

Walgreens, the nation’s largest drugstore chain by number of locations, is the first US retailer to link its loyalty program to Apple Pay.

Dunkin Donuts, Panera Bread, Coca-Cola, and Wegmans Food Markets are planning loyalty card integrations, too.

In what could be an important step for mobile payment, Walgreens is expanding the Apple Pay functionality it provides customers.

Walgreens is making sure its 80 million other Balance Rewards card members never have to remember a physical card again.

Walgreens was already one of the first retailers to accept Apple Pay, so it’s not surprising that it’s also one of the first partners to go live with support for loyalty cards.

Because shoppers’ cards never leave their wallets or purses, it’s seen as more secure than credit card transactions.