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Only a fraction of U.S. drivers redeemed rewards on millions of eligible gasoline-purchase transactions in June, payment-technology provider Verifone Inc. says following a study of its gas-station merchant base. Meanwhile, American Express Co. reported Wednesday that it has enhanced its Membership Rewards program by allowing cardholders to redeem points directly in Apple Pay’s online checkout experience.
New York City-based Verifone, a leading provider of point-of-sale and supporting technology for gas stations and convenience stores through its Commander product family, released its study Thursday of transactions from more than 40,000 c-stores and fuel retailers across the U.S., just as the July 4 holiday weekend was getting under way. Verifone analyzed 45.8 million outdoor fuel transactions between June 18 and June 25, an average of 5.7 million transactions per day—a time when gas prices were elevated because of the U.S.-Iran war.
Among those transactions, 11 million, or 24%, included a gas-rewards or loyalty card presented at the pump. Among those, a third of buyers redeemed a per-gallon discount. Savings averaged 12.8 cents per gallon, although some savvy drivers unlocked discounts of up to $1.51 per gallon, depending on the program and retailer. In all, drivers who redeemed loyalty discounts saved nearly $5.6 million, according to Verifone.
Verifone said its data reveal that with adoption at just 24% of transactions, drivers passed on 38.5 million rewards-eligible transactions in the study period. Projecting its findings, Verifone says 5.2 million daily gas transactions are forgoing rewards savings.
“With gas prices still elevated heading into the holiday weekend, rewards and loyalty programs have become a meaningful tool for budget-conscious travelers,” James Hervey, Verifone’s executive vice president of petroleum and convenience, said in a statement. “Our data shows that drivers who use rewards and loyalty programs are stretching every dollar at the pump—but the majority still aren’t actively redeeming available rewards. There’s a significant savings opportunity that millions of Americans are leaving behind each time they fuel up.”
In other rewards-program news, AmEx enhanced the utility of its Membership Rewards program by adding Apple Inc.’s Apple Pay online-payment service for redemptions. That means cardholders don’t have to leave checkout, open another app, or complete additional redemption steps, New York City-based AmEx says.
To use the service, AmEx cardholders shopping online or using apps on Apple’s iPhone or iPad tablet select Apple Pay at checkout and then choose their Membership Rewards-eligible AmEx card for payment. Then they select “Use Rewards” to cover all or part of the purchase, and complete the sale. Apple does not retain any transaction information linked to the user, AmEx says.
“Card members want rewards that fit naturally into how they shop and spend,” said Lisa Kalhans, AmEx’s executive vice president of U.S. Consumer Cards, in a statement. “With this launch, we’re making it easier than ever for card members to use membership-rewards points on the purchases they make every day.”
