What Is a Rewards Card App? | Digital Loyalty Explained

If you've ever collected stamps on a paper punch card at your local café, you already understand the core concept behind a rewards card app. It's the same idea—earn rewards for repeat purchases—but delivered through your customer's smartphone instead of a card that gets lost in the washing machine.

A rewards card app (sometimes called a loyalty card app or digital loyalty app) is a mobile application that lets customers track their progress in your loyalty program, earn rewards, and engage with your business directly from their phone. For business owners, it's a tool that transforms customer retention from guesswork into a measurable, manageable system.

This guide explains exactly what rewards card apps are, how they work, what types are available, and how to decide whether one is right for your business.

The Simple Definition

A rewards card app is a mobile or web-based application that connects customers to a business's loyalty programme. It replaces paper punch cards, plastic membership cards, and manual tracking with a digital system that lives on the customer's phone.

From the customer's perspective, a rewards card app lets them:

• See their current rewards status (stamps collected, points earned, rewards available)

• Track progress toward their next reward

• Receive notifications about promotions, rewards, and special offers

• Access their loyalty card whenever they need it

From the business owner's perspective, a rewards card app provides:

• A system for tracking customer visits and purchases

• A direct communication channel to customers via push notifications

• Data about customer behaviour, visit frequency, and programme performance

• Tools for creating promotions, automating rewards, and re-engaging lapsed customers

The technology handles what used to require manual effort: tracking who's visited, how often, and what they've earned. This automation is why digital loyalty programmes consistently outperform paper alternatives.

How Rewards Card Apps Work

The mechanics vary by platform, but most rewards card apps follow a similar pattern:

Customer Sign-Up

Customers join your loyalty programme—typically by scanning a QR code at your business, entering their phone number, or downloading an app. The best platforms make this process take under a minute, removing friction that would otherwise reduce participation.

Once enrolled, customers have access to their digital loyalty card. Some apps require customers to download a dedicated application; others (like Perkstar) save the card directly to Apple Wallet or Google Wallet, so customers don't need to download or manage anything extra.

Earning Rewards

When a customer makes a purchase, they earn credit toward their next reward. This might be:

• Stamps: Each visit or purchase earns a stamp. After a set number (typically 8-12), the customer receives a reward.

• Points: Purchases earn points based on spend amount. Points accumulate toward rewards of varying values.

• Visit tracking: The app simply records visits, with rewards triggered after certain milestones.

The earning mechanism happens quickly during checkout—usually a QR scan, a tap, or a staff member entering a code. Speed matters here; any system that slows down service won't get used consistently.

Redeeming Rewards

When customers accumulate enough stamps or points, they can redeem their reward. The app shows them what they've earned, and staff can verify and process the redemption through the merchant dashboard or scanning system.

Good platforms make redemption as frictionless as earning—customers shouldn't need to navigate complex menus or remember codes.

Ongoing Engagement

Beyond the earn-and-redeem cycle, rewards card apps enable ongoing communication:

• Push notifications: Messages sent directly to customers' phones—announcing promotions, reminding them they're close to a reward, or re-engaging those who haven't visited recently

• Automated rewards: Birthday gifts, anniversary messages, and milestone celebrations that trigger automatically

• Promotional campaigns: Time-limited offers, bonus stamp periods, and special events

This communication capability is what truly separates digital loyalty from paper punch cards. A paper card is passive; a rewards card app creates an active, ongoing relationship.

Types of Rewards Card Apps

Not all loyalty apps work the same way. Understanding the different types helps you choose the right approach for your business.

Branded Rewards Card Apps

Large brands and enterprise businesses often create their own custom-branded loyalty applications. Think of Starbucks Rewards, Costa Coffee Club, or Nando's—each has a dedicated app built specifically for their programme.

Advantages:

• Complete brand control over the customer experience

• Deep integration with other business systems (POS, ordering, payment)

• The app itself becomes part of brand identity

Disadvantages:

• Expensive to develop and maintain (tens of thousands to hundreds of thousands of pounds)

• Requires ongoing technical support and updates

• Customers must download and manage a dedicated app for each brand

For most small and medium businesses, custom app development isn't practical or necessary. The cost and complexity don't justify the benefits when excellent off-the-shelf solutions exist.

Universal Loyalty Platforms

Universal platforms provide loyalty infrastructure that multiple businesses can use. Instead of building from scratch, you subscribe to a service that handles the technology while you customise the programme for your business.

There are two main models within this category:

Multi-merchant apps: Customers download a single app that contains loyalty programmes from many different businesses. The app becomes a kind of loyalty wallet—one place to manage all their memberships.

White-label platforms: You get your own branded loyalty experience, but built on shared technology. Customers might save a card with your branding to their phone wallet, without needing to download a universal app.

Perkstar falls into the second category. Customers save your branded loyalty card directly to Apple Wallet or Google Wallet—no separate app download required. Your branding is front and centre, but you benefit from proven, maintained technology without the cost of custom development.

Wallet-Integrated Loyalty Cards

The newest evolution in rewards card technology bypasses dedicated apps entirely. Instead of asking customers to download something, these platforms save digital loyalty cards directly to the wallet apps customers already have on their phones (Apple Wallet, Google Wallet).

Why this matters:

• No app fatigue: Customers don't need another app taking up phone storage

• Always accessible: The loyalty card sits alongside payment cards—visible every time customers use their phone

• Higher engagement: Cards saved to wallets see significantly higher ongoing use than standalone apps

• Simpler for customers: No login to remember, no app to navigate

This wallet-first approach is increasingly becoming the standard for small business loyalty programmes, and it's the model Perkstar uses.

What Makes a Good Rewards Card App?

If you're evaluating rewards card apps for your business, here's what to look for:

For Your Customers

Easy sign-up: The process should take under a minute. Scan a QR code, enter a phone number, done. Complex registration forms kill participation.

No app download required: Wallet integration (Apple Wallet, Google Wallet) removes the biggest friction point. Customers don't need to download, create accounts, or remember logins.

Clear progress tracking: Customers should instantly understand where they stand. "You have 7 stamps. 3 more until your free coffee." No confusion, no calculations.

Valuable notifications: Messages should provide genuine value—rewards earned, relevant promotions, personalised offers. Spam erodes trust.

For Your Business

Simple setup: You should be able to launch your programme in hours, not weeks. Customise rewards, upload branding, start enrolling customers.

Intuitive management: The dashboard should be self-explanatory. Send notifications, view analytics, adjust rewards—without technical expertise or training courses.

Flexible reward structures: Different businesses need different models. Whether you want stamps, points, memberships, or multiple card types, the platform should accommodate.

Customer data and insights: Visit frequency, popular times, customer segments, programme performance. The data helps you make better decisions.

Push notifications included: The ability to message customers directly is one of the biggest advantages of digital loyalty. Make sure notifications are included without per-message fees.

Reasonable pricing: Look for transparent monthly pricing without hidden costs. Watch for per-transaction fees or per-member charges that balloon as your programme succeeds.

Technical Considerations

Reliability: The app needs to work consistently. Customers frustrated by technical glitches will disengage.

Speed: Stamp allocation and redemption should be nearly instant. Any delay that slows your checkout queue won't be tolerated during busy periods.

Works offline: In situations with poor connectivity, basic functionality should still work.

Why Businesses Are Moving to Rewards Card Apps

The shift from paper punch cards to digital loyalty isn't just about technology for its own sake. There are practical business reasons driving adoption:

Direct Customer Communication

A paper punch card creates a one-way relationship. Customers visit, collect stamps, eventually redeem. But you can't reach them between visits—you're entirely passive, hoping they remember you.

A rewards card app creates a two-way channel. You can message customers about promotions, remind them when they're close to a reward, re-engage those who haven't visited in a while, and fill slow periods with targeted offers. This communication capability alone often justifies the investment.

Customer Data and Insights

Paper cards tell you nothing about your customers. Digital platforms track visit frequency, spending patterns, reward redemption, and more. This data helps you understand your business better and make smarter decisions.

Which customers are most valuable? Who's at risk of leaving? What promotions actually work? You can answer these questions with digital loyalty; you're guessing with paper.

Convenience and Retention

Customers can't lose a digital card. It's always on their phone, always ready. No "I forgot my card at home" conversations that frustrate customers and slow your queue.

This convenience translates directly to higher participation. Research consistently shows digital loyalty programmes see significantly better engagement than paper alternatives.

Professional Presentation

A polished digital loyalty card—branded with your logo, colours, and messaging—signals that your business is modern and customer-focused. It's a small detail that contributes to overall perception.

Is a Rewards Card App Right for Your Business?

Rewards card apps work best for businesses with repeat purchase patterns. If customers naturally come back multiple times per year, a loyalty programme can accelerate that behaviour and capture more of their spending.

Strong fits include:

• Cafés and coffee shops

• Restaurants and takeaways

• Hair salons and barbershops

• Beauty and nail salons

• Gyms and fitness studios

• Retail shops

• Car washes

• Any business with regular repeat customers

Less ideal fits:

• Very high-ticket, infrequent purchases (customers buy once every several years)

• One-time service businesses (moving companies, for example)

• Businesses where price is the only differentiator

For the vast majority of small businesses with physical locations and repeat customers, rewards card apps provide meaningful value at reasonable cost.

Getting Started with a Rewards Card App

If you're ready to launch a digital loyalty programme, here's a practical path forward:

1. Define your reward structure: What will customers earn, and after how many purchases? "Buy 9, get 1 free" is proven and easily understood. Start simple.

2. Choose your platform: Look for wallet integration, simple setup, push notifications included, and transparent pricing. Perkstar ticks these boxes with a 14-day free trial—no credit card required.

3. Set up your programme: Upload your branding, configure rewards, customise your card design. With the right platform, this takes 15-30 minutes.

4. Create sign-up materials: Display QR codes at your counter, on tables, and at checkout. Make joining obvious and easy.

5. Train your team: Ensure every staff member knows how to help customers join and how to add stamps or points at checkout.

6. Promote actively: Mention the programme to every customer. Staff recommendations are the most effective sign-up driver.

7. Use your communication channel: Once customers are enrolled, don't let the relationship go passive. Send welcome messages, reward notifications, and occasional promotions.

The Bottom Line

A rewards card app is simply a digital version of the loyalty programmes businesses have used for decades—but with capabilities that paper can't match. Direct customer communication, detailed insights, automated rewards, and frictionless experience make digital loyalty programmes significantly more effective than their analogue predecessors.

For most small businesses with repeat customers, a rewards card app isn't a luxury—it's a practical tool that pays for itself through increased visit frequency, better customer retention, and stronger relationships.

Perkstar makes launching a rewards card app straightforward, with wallet integration that customers appreciate, push notifications that keep them engaged, and a dashboard that's genuinely easy to use. The 14-day free trial lets you test everything without commitment.

Start your free trial at Perkstar →

Frequently Asked Questions

What's the difference between a rewards card app and a loyalty program?

A loyalty programme is the overall strategy—the structure of how customers earn and redeem rewards. A rewards card app is the technology that delivers that programme to customers. Think of it this way: the loyalty programme is what you offer; the rewards card app is how customers interact with it. Many businesses have loyalty programmes without dedicated apps (using paper cards), but a rewards card app makes programmes significantly more effective.

Do customers have to download an app to use a digital rewards card?

Not necessarily. Some platforms require a dedicated app download, but modern solutions like Perkstar save loyalty cards directly to Apple Wallet or Google Wallet. This means customers don't need to download anything—their loyalty card sits alongside their payment cards in the wallet app that's already on their phone. This wallet-first approach typically sees higher participation because there's less friction.

How much does a rewards card app cost for a small business?

Most small business loyalty platforms cost £15-60 per month, depending on features. This typically includes unlimited customers, push notifications, and basic analytics. Some platforms charge per-transaction or per-member fees that increase as your programme grows—read pricing carefully. At £15-30/month, a rewards card app costs less than most businesses spend on a single day's marketing.

Can a rewards card app work for customers who aren't tech-savvy?

Yes. Wallet-based loyalty cards are designed for simplicity—customers save the card once (staff can help if needed) and it works automatically from then on. No app to navigate, no login to remember. For customers who truly won't engage digitally, most platforms allow staff to look up customers by phone number and manage their account on their behalf. The "my customers aren't tech-savvy" concern is less relevant than most business owners expect.

What data can I get from a rewards card app?

Typical data includes: how often members visit compared to non-members, which customers are most active, who hasn't visited recently (and may need re-engagement), peak visit times, reward redemption rates, and programme growth over time. This data helps you understand your customer base better and measure whether your loyalty programme is actually working.

How long does it take to set up a rewards card app for my business?

With modern platforms, setup typically takes 15-30 minutes. You'll upload your logo, set your reward structure, customise colours and messaging, and generate your sign-up QR code. Staff training takes another 10-15 minutes. Most businesses can go from signup to enrolling their first customer within an hour. Complex enterprise solutions take longer, but small business platforms are designed for quick deployment.