American Express Adds Apple Pay Rewards Redemption for US Cardholders

This article first appeared on GuruFocus.

American Express (NYSE:AXP) is giving US cardholders a new way to stretch their rewards, allowing Membership Rewards points to be used directly through Apple (NASDAQ:AAPL) Pay for online and in-app purchases. The new feature could make points feel more practical for everyday spending, especially as consumers look for more flexibility in how they manage routine purchases.

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The move comes as inflation pressures household budgets and wage growth no longer keeps pace, pushing Americans to find new ways to make their dollars go further. Rewards that may have traditionally funded travel or vacations can now possibly be used for more ordinary spending, including groceries and other day-to-day purchases.

American Express has been expanding its rewards ecosystem as competition in premium cards intensifies. The company recently added benefits to its Gold card, partnered with Fanatics to let members convert points into FanCash, and already allows point redemption at Amazon.com (NASDAQ:AMZN), while JPMorgan Chase (NYSE:JPM) and Robinhood Markets (NASDAQ:HOOD) continue adding pressure with higher-fee premium cards and new fintech-driven offerings.

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