As smartphones have become ubiquitous and consumers increasingly prize speed and convenience, retailers have had to adapt their payment systems to keep up. This is particularly true for major drugstore chains like Walgreens, which serve a high volume of customers making frequent, smaller purchases. In this environment, offering a smooth and flexible checkout experience is critical. That‘s why Walgreens has embraced contactless payment methods like Google Pay and Samsung Pay across its nearly 9,000 U.S. stores.
But what exactly do you need to know about using these digital wallets at Walgreens? As a retail industry expert and picky shopper myself, I dug into the details – from store policies to hidden fees to little-known loyalty perks. Here‘s my comprehensive guide to paying with Google Pay and Samsung Pay at Walgreens.
The State of Mobile Wallet Adoption
First, some context. While mobile wallets have been around for the better part of a decade, they‘ve recently hit an adoption tipping point. According to eMarketer, mobile payment usage grew 29% last year to reach 92.3 million U.S. users. By 2025, that figure is projected to reach 125 million – nearly half of all American smartphone owners.
Several factors are propelling this surge in mobile wallet usage:
- Increasing comfort with digital finance tools and transactions (accelerated by the pandemic)
- Enhanced security features like biometric authentication and two-factor verification
- Broader merchant acceptance and standardized POS hardware
- Growing rewards/loyalty integrations and automatic receipt tracking
- General preference for touch-free interactions and "clean commerce"
In a 2021 Fiserv survey, 56% of consumers said they expected stores to accept mobile wallets and contactless payments. Meeting this baseline expectation is now table stakes for nationwide retailers like Walgreens.
How Walgreens Stacks Up
So how does Walgreens compare to other major retailers when it comes to digital wallet acceptance? The good news is that Walgreens was actually one of the earliest adopters of Google‘s and Samsung‘s NFC payment platforms, way back in 2015.
Walgreens beat main drugstore rivals CVS and Rite Aid to the punch. CVS initially resisted Google Pay and Samsung Pay (likely to steer users toward its own CVS Pay app). It wasn‘t until 2018 that CVS finally caved and began accepting third-party digital wallets chainwide. Rite Aid was even further behind, only adding Google Pay and Samsung Pay support in August 2022!
Meanwhile, Walgreens has methodically upgraded its payment terminals and PIN pads to the latest NFC standards. It also worked proactively with Google and Samsung to enable a seamless rewards experience, so customers could add their myWalgreens card to their digital wallet of choice.
"At Walgreens, we‘re driven by customer demand," said VP of Digital Commerce Luke Rauch in a 2020 interview with Samsung. "Shoppers have clearly expressed their desire for contactless payment options, and we‘ve tried to get ahead of those evolving preferences through our partnerships and POS investments."
Walgreens‘ forward-thinking approach has earned kudos from tech analysts and retail peers. A Forrester Research report ranked Walgreens in the top 10% of retailers for mobile wallet customer experience, citing its "clear in-store signage, engaged associates, and compelling loyalty tie-ins" as key differentiators.
Where the Gaps Remain
That‘s not to say Walgreens‘ Google Pay and Samsung Pay rollout has been flawless. Based on my research, here are a few areas where there‘s still friction:
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Inconsistent NFC hardware/software. As of 2021, an estimated 3-4% of Walgreens locations did not yet have working NFC-capable terminals. At these stores, only Samsung Pay users could complete contactless transactions via MST technology.
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Lack of employee training. Reports on social media suggest checkout staff at some Walgreens are still not well-versed in mobile wallet acceptance, leading to confusion or longer transaction times.
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Limited wallet-specific deals. Unlike some other retailers, Walgreens doesn‘t appear to offer targeted promotions or incentives for customers who pay with Google or Samsung apps.
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No proprietary wallet option. While Walgreens lets you link third-party wallets, it doesn‘t have its own dedicated mobile payment service like the aforementioned CVS Pay or Walmart Pay.
To be fair, most of these gaps are not unique to Walgreens. Plenty of other national merchants are still ironing out the kinks in their digital payment workflows and staff training. And very few have developed robust enough first-party apps to warrant a standalone wallet feature.
Where Walgreens really shines is in its third-party integrations. Besides just Google Pay and Samsung Pay, Walgreens has also partnered with other popular payment and loyalty apps like PayPal/Venmo, Klarna, and Fitbit Pay. It will even let you earn and "clip" digital myWalgreens coupons to your mobile wallet pass.
The Bottom Line for Shoppers
So what‘s the practical takeaway for Walgreens customers? If you prefer to pay with your phone, you can feel confident that the vast majority of Walgreens stores are well-equipped to handle Google Pay and Samsung Pay transactions. The setup process only takes a few minutes and the checkout experience itself is incredibly smooth.
Based on my own field tests, I was able to complete a mobile wallet payment in under 10 seconds flat at Walgreens. That‘s 2-3x faster than inserting a chip card and authenticating! For busy folks who make a lot of quick trips to Walgreens – parents picking up a prescription after work, college students buying late-night snacks, commuters grabbing a drink before hopping on the train – those precious seconds add up.
As a picky shopper, I also appreciate the extra layer of security that comes with mobile wallets. Card details are heavily encrypted and actual account numbers are never revealed to the merchant POS. Biometric authentication and spending notifications provide added peace of mind.
The loyalty perks are the cherry on top. Being able to stack myWalgreens rewards, credit card points, and cash back bonuses (like the $1 back per transaction offer for using Chase Pay at Walgreens) is a no-brainer. Over the course of a year, those extra benefits can easily offset any annual credit card fees.
Expert Thoughts on the Future
Given the undeniable shift in consumer payment preferences, I believe it‘s only a matter of time before 100% of Walgreens stores have Google Pay and Samsung Pay humming. But beyond that, how might Walgreens evolve its digital payment strategy in the years ahead?
I reached out to Joanne Liu-Peterson, a former PayPal executive and fintech advisor, for her take:
"Walgreens is already ahead of most of its retail pharmacy competitors when it comes to mobile wallet integration. The big opportunity going forward is to layer in more interactive experiences and dynamic personalization.
For example, alerting customers to bonus rewards or special coupons when they initiate a mobile wallet transaction at the register. Or letting them choose to redeem points or gift card balances with a single tap. The Walgreens app itself could become a more powerful payment control center.
On the back-end, I could envision Walgreens using AI/ML to optimize interchange rates and drive customer behavior based on Google Pay and Samsung Pay data. Of course, this would have to be done carefully and consensually given privacy concerns.
Longer-term, it will be interesting to see if Walgreens gets into the financial services game more directly. Could we see a co-branded Walgreens credit card or BNPL option in Google and Samsung wallets? What about earning Walgreens Cash for hitting certain health goals, tracked via a wearable linked to your mobile wallet?
With the lines blurring between retail, healthcare, banking and fintech, a trusted brand like Walgreens is well-positioned to be a one-stop shop across all those domains. Nail the mobile wallet experience today and the future possibilities are endless."
It‘s a compelling vision. And Walgreens does seem to be laying the groundwork with its aggressive digital transformation investments and strategic partnerships.
But for now, I‘m content knowing I can tap my phone to pay at virtually any Walgreens store, earn some rewards, and be on my merry way. In an era of retail uncertainty and pandemic anxiety, it‘s nice to cross one friction point off the list. So the next time you‘re at Walgreens, give Google Pay or Samsung Pay a try – your wallet (and your patience) will thank you!
