American Express announced on Tuesday an expansion of its Membership Rewards redemption options, enabling cardholders to directly use their points to offset the cost of online and in-app purchases during checkout with Apple Pay. This new feature offers a more seamless and convenient redemption process, allowing completion without leaving the payment interface.

An executive vice president for U.S. Consumer Card Services at American Express stated that cardholders desire rewards to integrate naturally into their shopping and spending habits. This launch makes it easier than ever for members to use Membership Rewards points for everyday purchases.

The functionality supports cardholders using an iPhone or iPad for online or in-app shopping. At the Apple Pay checkout screen, they can select an eligible American Express card, tap "Use Rewards," and enter the number of points they wish to apply to cover all or part of the transaction amount.

According to the company's redemption standard, points used via Apple Pay are valued at 0.7 cents each. This means 10,000 points can offset $70 in spending. This redemption rate is significantly lower than the potential value obtained by transferring points to airline and hotel partners. Third-party estimates suggest Membership Rewards points can be worth 2 to 2.2 cents each when used through transfer partners.

Although not the most valuable way to utilize points, the new feature provides cardholders with a convenient channel for everyday point redemption, particularly suited for consumers looking to quickly offset shopping expenses.