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Think Twice Before Using Apple Pay in iOS18: Here’s Why
July 1, 2025
Apple’s WWDC 2025 keynote introduced several exciting features in iOS 18, including updates to Apple Pay and the Wallet app. One of the most talked-about additions is the ability to redeem rewards (credit card points) directly through Apple Pay. While this might sound convenient, it’s actually a bad deal for users. Here’s why you should think twice before using your credit card points this way.
Upcoming Apple Pay Features in iOS 18
With iOS 18, Apple Pay has introduced several new features:
- Tap to Cash: This feature allows users to send Apple Cash to friends and family by simply bringing two iPhones close together, similar to AirDrop.
- Apple Wallet Upgrades: Users can now view their rewards or points balance and redeem those points with Apple Pay online or in apps. The Wallet app will also provide access to installment financing options and enhanced event ticket features.
While these updates aim to enhance user experience, the new feature allowing users to redeem credit card rewards through Apple Pay deserves a closer look.
Why Redeeming Credit Card Points with Apple Pay is a Bad Idea
Poor Value for Your Points
When you redeem your credit card points directly through Apple Pay, you’re likely getting far less value than if you transferred those points to travel partners. Typically, points used for travel bookings can be worth significantly more. For example, transferring points to airline or hotel loyalty programs can often yield higher redemption rates, allowing you to get more bang for your buck.
Limited Redemption Options
Using your points through Apple Pay restricts your redemption options to purchases made through Apple Pay, which might not align with your spending habits. In contrast, transferring points to travel partners offers a wider range of redemption possibilities, including flights, hotel stays, and other travel-related expenses.
Missing Out on Travel Perks
By redeeming points directly through Apple Pay, you miss out on the travel perks that often come with transferring points to travel partners. These perks can include free checked bags, priority boarding, room upgrades, and more. Such benefits can significantly enhance your travel experience, adding even more value to your points.
Use Kudos to earn rewards on over 15,000 participating stores, even if your card doesn’t naturally earn rewards.
Why You Should Use Tools Like Kudos Instead
Kudos is a free, AI-powered smart wallet that helps you maximize your credit card rewards. Kudos makes it easy to unlock the full potential of your credit card points by recommending the best ways to use them. Whether it’s transferring points to travel partners for maximum value or finding the best cashback options, Kudos ensures you get the most out of your rewards.
How Kudos Can Help
- Maximize Value: Kudos helps you identify the best ways to use your credit card points, ensuring you get the highest value possible.
- Easy Management: Manage all your credit card rewards in one place, making it simple to keep track of your points and optimize their use.
- Smart Recommendations: Kudos provides personalized recommendations on the best cards to use for each purchase, helping you earn more rewards faster.
Our Expert Takeaway
While Apple’s new feature allowing users to redeem credit card rewards through Apple Pay in iOS 18 may seem convenient, it’s not the best option for maximizing the value of your points. Instead, consider using tools like Kudos to unlock the full potential of your rewards. By transferring your points to travel partners, you can enjoy higher redemption rates and valuable travel perks. Don’t settle for less—make your points work harder for you.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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