American Express Allows New Yorkers to Use Rewards for Cab Fare
American Express cardholders can now use their rewards points to pay taxi fares in New York City.
The partnership with VeriFone will allow cardholders to redeem their Membership Rewards Points just like they are making a credit card payment.
At the time for payment, American Express cardholders can swipe any eligible card enrolled in the Membership Rewards program. They will receive an on-screen prompt giving them the option to use points for their ride fare, including tip and tolls. There must be enough eligible points in the account for the transaction to be valid. During the payment process, card members will see how many points are required for the ride before finalizing the transaction.
VeriFone process more than 200,000 payments a day in more than 7,000 cabs throughout New York City.
This marks a new step by American Express in making their rewards points more useful and accessible, as well as increasing participation in their Membership Rewards program. The pay with rewards program can eventually be expanded to any retail store that uses VeriFone’s technology. By encouraging more frequent use of points for regular purchases, American Express is giving customers a reason to use their card over Visa or MasterCard. Even if cardholders pay off their balance each month, American Express will benefit from this increased usage through additional transaction fees that will be collected from merchants.
“We’re leveraging our unique technology to bring it to life at the most critical commerce touchpoint–the physical point of sale,” said Leslie Berland, senior vice president, Digital Partnerships and Development at American Express, in a statement.