What Is a Digital Loyalty Card? Complete 2026 Guide

Last updated: January 2026

A digital loyalty card is a virtual stamp card that lives in your phone’s wallet app. Instead of carrying a paper card, your customers scan a QR code and the card saves to Apple Wallet or Google Wallet - apps they already have.

Key Takeaway: Digital loyalty cards aren’t apps. They’re passes that live in your phone’s built-in wallet. No download, no account creation, no friction.

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What exactly is a digital loyalty card?

Think of it as a paper punch card that lives on your phone.

With a paper card, you get a stamp each visit. With a digital card, you scan a QR code and a virtual stamp appears on your phone. Same concept, different technology.

The key difference: the card lives in Apple Wallet or Google Wallet - not in a separate app.

This matters because:

• Apple Wallet comes pre-installed on every iPhone
• Google Wallet comes pre-installed on Android phones
• Customers don’t download anything new
• The card sits next to their credit cards and boarding passes

When someone asks “do I need to download an app?” the answer is no. They already have the app.

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How digital loyalty cards work (step by step)

Here’s what happens when a customer joins your loyalty program:

For the customer:

1. They scan your QR code (or tap a link)
2. A card preview appears
3. They tap “Add to Wallet”
4. Done. Card saved. Takes 5 seconds.

For you:

1. Customer scans → you see them in your dashboard
2. Each visit → scan their card, stamp added automatically
3. Reward earned → they get notified, you see redemption data
4. Repeat.

No paper to print. No cards to replace. No “I forgot my card” excuses.

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Apple Wallet vs Google Wallet: What’s the difference?

Both do the same job. The technology behind them is slightly different, but your customers won’t notice.

Feature	Apple Wallet	Google Wallet
Pre-installed	Yes (all iPhones)	Yes (most Androids)
Add card method	QR code or link	QR code or link
Push notifications	Yes	Yes
Location alerts	Yes	Yes
Real-time updates	Yes	Yes
Works offline	Yes	Yes

Apple Wallet (PassKit)

Apple calls their loyalty card technology “PassKit.” Your card becomes a “pass” - the same format used for:

• Boarding passes
• Event tickets
• Store cards
• Coupons

When a customer adds your loyalty card, it appears in the same app as their airline tickets and concert passes. It feels native, familiar, trustworthy.

Apple Wallet can also:

• Show different info on lock screen vs inside the app
• Update card design remotely (you change colors, their card updates)
• Trigger notifications based on location or time

Google Wallet

Google Wallet works similarly. Your loyalty card becomes a “pass” stored alongside:

• Payment cards
• Transit passes
• Event tickets
• ID cards

Google offers a neat feature called “Pass Builder” - a visual tool to design how your card looks before you build it.

Both platforms support the same core features. Most digital loyalty card providers (including FaveCard) create cards that work on both automatically.

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Why customers prefer digital cards over apps

Here’s a stat that matters: 43% of consumers prefer digital wallet cards over downloading a separate loyalty app (Vibes 2026 Mobile Consumer Report).

Why? Three reasons:

1. No download friction

Downloading an app takes effort:

• Find the app store
• Search for the app
• Wait for download
• Create an account
• Allow notifications
• Remember another password

Adding a wallet card takes 5 seconds:

• Scan QR
• Tap “Add”
• Done

2. No app clutter

The average person has 80+ apps on their phone but uses only 9 daily. Nobody wants another app for every coffee shop they visit.

Wallet cards don’t add clutter. They live inside an app you already use.

3. Always accessible

Wallet apps are designed for quick access:

• Double-click side button (iPhone) → cards appear
• Phone automatically surfaces relevant cards at the right location
• No searching through app folders

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What businesses can do with digital loyalty cards

Digital cards aren’t just convenient - they’re powerful. Here’s what you get that paper can’t offer:

Real-time tracking

See exactly:

• How many active loyalty members you have
• Visit frequency per customer
• Who’s one stamp away from a reward
• Which rewards get redeemed most

Push notifications

Send messages directly to the card:

• “You’re 1 stamp away from a free coffee!”
• “Your reward expires in 3 days”
• “Double stamps this weekend”

These appear on lock screens - no app needed.

Location-based alerts

Both Apple and Google Wallet support geofencing. When a customer walks near your store, their card can pop up automatically.

Imagine: customer walks by your cafe, phone buzzes, card appears showing “2 stamps to free coffee.” That’s not creepy - that’s helpful. (More on this in our cafe loyalty program guide.)

Automatic updates

Change your reward? Update your branding? The card updates on every customer’s phone automatically. No reprinting, no redistribution.

Zero fraud

Paper cards can be counterfeited (Subway learned this the hard way - they shut down their entire punch card program in 2005 due to fake stamps). Learn more in our paper vs digital loyalty cards comparison.

Digital cards verify each scan. One phone = one card = one customer.

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Digital loyalty card vs loyalty app: Which is better?

Let’s be clear about the difference:

	Digital Loyalty Card	Loyalty App
Lives in	Apple/Google Wallet	Separate download
Setup time for customer	5 seconds	2-5 minutes
Account required	No	Usually yes
Storage used	~50KB	50-200MB
Adoption rate	High	Low (most never download)
Features	Stamps, rewards, notifications	More customization possible

When a loyalty app makes sense:

• You’re a large chain with complex rewards
• You need detailed purchase history integration
• You want gamification, tiers, and social features

When a digital wallet card makes sense:

• You’re a small-medium business
• You want maximum adoption (minimal friction)
• Simple stamp-based rewards work for you
• You don’t want to maintain an app

For most local businesses - cafes, restaurants, salons, retail shops - a digital wallet card is the better choice. Higher adoption beats more features. See our guide on coffee shop loyalty programs for a real-world example, or compare the best stamp card app alternatives to find the right fit.

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How to create a digital loyalty card

You have two options:

Option 1: Build it yourself (technical)

Apple and Google provide developer tools:

• Apple: PassKit framework
• Google: Google Wallet API

This requires:

• Developer accounts ($99/year for Apple)
• Coding knowledge (or hiring a developer)
• Server infrastructure to host and update passes
• Ongoing maintenance

Only makes sense if you’re building for many businesses or have specific custom needs.

Option 2: Use a platform (recommended)

Platforms like FaveCard handle the technical side:

• You design your card (colors, stamps, reward)
• Platform generates Apple + Google Wallet passes
• You get a QR code to share with customers
• Dashboard tracks everything

Setup takes 5-10 minutes. No coding required.

Most platforms charge $15-50/month depending on features. FaveCard has a permanent Free plan ($0 forever) — Pro starts at $19/month.

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Common questions about digital loyalty cards

”What if a customer doesn’t have a smartphone?”

Rare, but it happens. Options:

• Keep a small stack of paper cards as backup
• Let them give their phone number (you track manually)
• Accept that not every customer will join

In practice, 97% of US adults own a smartphone. This is rarely an issue.

”What if they switch phones?”

Wallet cards sync to their Apple/Google account. New phone = cards automatically restore.

”Can customers cheat the system?”

Much harder than paper. Each card is tied to a unique device/account. You can also:

• Limit stamps per day
• Require staff verification
• Track suspicious patterns

”Do cards work without internet?”

Yes. Cards are stored locally. Internet is only needed when adding the card or syncing updates.

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The bottom line

A digital loyalty card is simply a paper punch card that lives in your customer’s phone wallet. No app download. No account creation. No friction.

For customers: it’s convenient - always there, never lost.

For businesses: it’s powerful - real tracking, notifications, zero fraud.

The technology (Apple PassKit, Google Wallet API) sounds complex, but platforms handle all of it. You just design your card and share a QR code.

If you’re running a loyalty program in 2026, digital wallet cards are the simplest way to do it right. Check out our guides on salon loyalty programs and how to get repeat customers for more strategies.

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Want to create a digital loyalty card for your business? FaveCard lets you set one up in 5 minutes - works with both Apple Wallet and Google Wallet, no coding required.