J.C. Penney is accepting Apply Pay nationwide and making its own store branded credit card available on Apple Pay so its Reward customers can continue to earn loyalty points.
Penney’s checkouts can process purchases through Apply Pay by holding their iPhone or Apple watch near the sale terminal instead of inserting a credit card. Penney just upgraded its own mobile app which also has a wallet function. Coming soon to the Penney app is the capability to complete online purchases with Apple Pay.
Penney launched a new loyalty program earlier this month and by adding Apple Pay it’s hoping those customers will have another reason to sign up for a Penney credit card and Reward program, said Therace Risch, Penney’s chief information officer.
Apple Pay had a slow start a few years ago, as consumers weren’t too interested in paying by smartphone yet, but now people are more mobile focused. Penney joins a long list of retailers accepting Apple Pay including Best Buy, Kohl’s, Sprouts Farmers Market and Trader Joe’s. Major holdouts are Wal-Mart and Target.
When customers add a payment card to Apple Pay, the actual card numbers are neither stored on the device, nor on Apple servers. Instead, a unique device account number is assigned, encrypted and stored in the secure element on the Apple device. Each transaction is authorized with a one-time unique dynamic security code.