Loyalty Pay: Overview
Punchh Wallet has been officially retired. Its core capabilities haven’t gone away—they’ve been strategically rolled into Loyalty Pay, bringing loyalty, identification, and payment into a single, more powerful experience. Loyalty Pay is available for an additional cost. Contact your Punchh representative to learn more.
Loyalty Pay brings loyalty and payment together, allowing guests to earn rewards and pay at the same time. Guests provide their payment information once in your mobile app, and that payment method is linked directly to their loyalty account. After that, the guest simply identifies themself using a code or pass, and Loyalty Pay will connect their loyalty account and apply payment in one step. There’s no separate checkout process and no need for guests to change how they order.
Highlights:
- Identify guests at every touchpoint, regardless of how they order
- Turn anonymous transactions into identified guest profiles with real-time data
- Eliminate separate scan and payment steps for your guests and staff
- Expand your loyalty reach without asking guests to change how they order
- Keep guest spend circulating within your brand with Digital Stored Value
Identification Channels
Loyalty Pay includes three payment channels: QR code, Short code, and Loyalty Pass. Identity resolution happens first on every transaction, loyalty fires before payment closes. This guarantees that earnings and redemptions are captured on every transaction, not retroactively applied.
- Loyalty Codes is the parent term for all in-app identification methods, QR Code, and Short Code.
- Loyalty Passes are the identifier for the app-less path. (Note: "Smart Passes" is the umbrella term for the entire passes feature: loyalty passes and offer passes.)
| Capability | Entry Method | Works At |
|---|---|---|
| QR Code to Pay | Guest opens app and presents QR code at POS | Counter, Kiosk, Drive-Thru Window |
| Short Code to Pay | Guest reads a short code aloud | Drive-Thru, Counter, Table Service |
| Loyalty Pass to Pay | Guest taps Smart Pass in Apple Wallet | Counter, Drive-Thru Window |
QR Code to Pay
QR Code to Pay allows guests to identify, earn, redeem, and pay in a single scan. The guest opens the loyalty app, presents the QR code at the POS, and the transaction closes.
Guest Experience
- The guest opens the loyalty app and navigates to their QR code.
- The cashier, kiosk, or terminal scans the code.
- Loyalty is recognized, rewards are applied, and payment is processed in the same scan.
Use Case: A guest stops at the counter. Instead of scanning for loyalty and then presenting a card to pay, they present their QR code once. The transaction closes in under a second with points posted and rewards applied before the receipt prints. There is no second interaction for the guest or the cashier.
Short Code to Pay
(Coming soon to the Punchh Mobile Framework)
Short Code to Pay is the only Loyalty Pay capability that captures loyalty before the guest reaches the window. The guest reads a short, numeric code aloud at the drive-thru speaker, at the POS in-store, or over the phone, and loyalty is confirmed.
This eliminates the most common failure point in loyalty: guests who don't present their loyalty identifier at the window or POS, or who are never prompted to. Short Code to Pay resolves loyalty at the speaker, where most competitors can't support drive-thru loyalty payment at all.
Guest Experience
- The guest reads their short code aloud at the drive-thru speaker.
- The POS keys in the code and loyalty is confirmed.
- The guest reaches the window for handoff only. No additional scan, no separate payment credential, zero extra steps.
Use Case: A guest places their drive-thru order and reads their short code at the speaker. By the time they pull to the window, their loyalty has already been recognized, their rewards applied, and their payment confirmed. The window is a handoff only. Staff don't need to prompt, and guests don't need to do anything extra.
Loyalty Pass to Pay
Loyalty Pass to Pay uses a Loyalty Pass in Apple Wallet to identify the guest, apply rewards, and process payment in a single NFC tap, all without the need to download the app. (Smart Passes must already be enabled.)
Note: Loyalty Pass to Pay is available on the All Access package only. Smart Passes in Google Wallet support loyalty identification, earning, and redemption, but do not process payment at this time. Payment via NFC is exclusive to Apple Wallet.
Guest Experience
- The guest taps their Loyalty Pass, stored in Apple Wallet, to the NFC-enabled POS terminal.
- Loyalty is recognized, rewards are applied, and payment is closed in one tap.
- Points post instantly.
When a guest pays using Apple Pay, they are automatically prompted to add your Loyalty Pass to their Apple Wallet. No separate enrollment step is required.
Use Case: A guest who has never downloaded your app taps to pay with Apple Pay at the drive-thru window. They are prompted to add your Loyalty Pass to Apple Wallet on the spot. On their next visit, one tap handles their identity, rewards, and payment.
What's Next?
Review the Smart Passes: Overview article to learn how to configure Apple and Google Passes for your loyalty program.
Digital Stored Value
Digital Stored Value is the accelerator for brands looking to deepen engagement. Guests preload a brand-named balance, auto-reload keeps them active, and that drives higher visit frequency and spend per visit. Guests load a balance once, set up auto-reload, and every visit after that is automatic.
Note: Digital Stored Value with auto-reload requires the All Access package. It is not available on an alternate gateway or other packages. Digital Stored Value is in-app only; guests must have the loyalty app to use stored value.
Your Brand's Currency
With Digital Stored Value, you can give the balance a name that feels native to your brand, something your guests associate with your program, not a generic wallet. The balance lives in your loyalty app, tied to your brand identity.
Auto-Reload
Guests set a minimum threshold and a reload amount. When the balance drops below the threshold, it reloads automatically from the guest's card on file. Guests never need to think about topping up.
Use Case: A loyal guest sets a $25 auto-reload threshold on their account. Every time their balance dips, $25 is added automatically from their card on file. On their 14th visit this month, their balance refills in the background while they order.
The Loyalty Loop
Digital Stored Value reinforces repeat visits by giving guests a reason to return. When guests have a balance waiting, coming back is a given, and auto-reload keeps the cycle going without any effort on their part.
Best Practice: Encourage guests to set up auto-reload during onboarding. Brands that make a digital stored value setup part of the sign-up experience see significantly higher visit frequency from enrolled guests.
What's Next?
Review the Digital Stored Value with Gift Cards article for further details and configurations.
Gateway Options
Loyalty Pay is built around PAR Pay, but your brand does not need to switch payment providers to get started. Brands with an existing payment gateway can use Loyalty Pay through an alternate gateway support.
| Gateway | Details |
|---|---|
| PAR Pay (Recommended) | The default path. Supports every Loyalty Pay capability — QR Code to Pay, Short Code to Pay, Loyalty Pass to Pay, and Digital Stored Value on All Access. |
| Alternate Gateway | For brands with an existing payment provider. Supports QR Code to Pay and Short Code to Pay. Does not support Digital Stored Value. Your brand is responsible for its own gateway transaction fees. |
Contact your PAR representative to discuss which gateway path fits your brand.