Digital loyalty passes: how to improve customer retention

Published on 29th April 2025

Most businesses understand that earning a customer’s trust is difficult, yet losing it takes almost no time at all. The shift toward digital loyalty passes gives us a practical tool to keep people interested without overcomplicating the relationship.

This digital approach to the traditional loyalty card changes how we think about keeping customers coming back. It offers convenience and value without the clutter of a physical wallet.

Making it easy for people

Digital loyalty passes sit naturally within smartphones using apps like Apple Wallet or Google Pay. They give customers a simple way to track and use their rewards. Unlike physical cards that end up lost in a drawer or forgotten in a coat pocket, these passes are always right there on the device people use most. They are also a significant improvement over dedicated loyalty apps, which force users to remember another password or rely on an internet connection just to log in.

Stewart Johnson, Founder of PassFlow, points out that removing barriers is the main goal. He notes that "digital wallet loyalty passes are a great way to simplify the process for both businesses and customers. People want a consistent way to use these kinds of passes without thinking where to find the appropriate app. They remove barriers like manual tracking of rewards and ensure that customers have their benefits at their fingertips."

How wallet passes can make loyal customers

Digital loyalty cards that live in a mobile wallet are far more useful than their paper or plastic counterparts. If you want to reward your customers, there are a few practical ways to do it:

Simple collection: Allow customers to collect points every time they buy from you by letting them scan their phone at the till via NFC or a QR code. Location awareness: You can use geographical data from the pass to send relevant offers to your customers when they are near one of your branches.

Customers today expect their interactions to work without hassle. According to a survey by McKinsey, 71% of customers are more likely to stay with brands that offer experiences specific to them. Digital loyalty passes manage this well by delivering rewards and location-based perks exactly when the customer needs them.

Benefits for business

For businesses that offer wallet passes, the benefits are about more than just modernising a process:

Live communication: Digital passes allow companies to send updates, such as exclusive offers or flash sales, straight to a customer’s device.

Clearer understanding: By looking at how customers use their passes, businesses can tailor promotions to individual preferences, which increases the chance of a return visit.

Lower costs: Printing and distributing physical cards is expensive and wastes resources. Digital alternatives remove these costs and help with sustainability efforts.

Better connection: A well-designed digital programme can build a stronger link with the brand because customers feel valued when the experience respects their time.

Where digital loyalty passes can be used

Any business that relies on people coming back can benefit from a mobile wallet loyalty pass. We see this working for coffee shops, gyms, takeaways, fast food restaurants, pet groomers, hairdressers, bookshops, nightclubs, and gift shops to name but a few. When you give digital rewards to your customers in return for their business, they form a stronger connection to your brand and are more likely to keep using your service.

The future of customer loyalty

As technology progresses, digital loyalty passes will likely become even more capable. We can expect machine learning to play a role in predicting what a customer might need before they even ask for it.

Value for everyone

Digital loyalty passes are a sensible step forward in how businesses look after their customers. For companies willing to adopt this approach, the results can be just as significant as the rewards they offer.

The time of the physical loyalty card is ending, and the digital pass offers a cleaner, more logical alternative.

How to get started

If you’d like to issue wallet passes in your business, we are here to help.

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