Greater competition, fintech innovation, and data utilisation have contributed to the rising standard of credit card reward and loyalty programmes around the world. Personalisation of rewards, partnerships with brands and merchants, and digitally adaptable platforms are becoming the standard for the next level of card rewards. The increased investment in reward programmes comes as access to credit products increases across emerging and developed markets and competition intensifies. These factors are driving greater credit payment value across markets, contributing to the expectation that credit growth will exceed all other card functions globally from 2025 to 2029.
Personalisation to become an expectation
Personalisation, in card loyalty and reward terms, means empowering the consumer to determine which factors are most important to them. Additionally, in markets where interchange is limited, personalisation offers a route to enhance a card’s value proposition at a comparatively lower cost. A more expensive benefit for a reward programme like airport lounge access might not be relevant for a consumer who might prefer a discount at a specific merchant. Allowing the consumer to select which benefit they receive means they get what they want but it also adds to the consumer’s awareness as to the benefits of using one card over another. Many times, consumers are not aware of the benefits available from a programme, leaving the benefits underutilised. Another manifestation of personalisation in reward programmes is the redemption process. Consumers are increasingly expecting greater flexibility in the process, both in terms of the amount redeemed and where they can do so.
The primary barrier to redemption in a loyalty or reward programme, with 40% of respondents selecting it, was the time it takes to earn rewards
Source: Euromonitor Voice of the Consumer: Digital Shopper Survey, fielded April 2025
Several banks have adopted more personalised loyalty programmes that will likely become standard for reward plans.
Partnerships increase value of payment rewards
Co-branded programmes and partnerships between loyalty programmes and specific merchants have also continued to increase the value of transactions and driven payment value. For trusted brands, co-brand programmes build on the existing relationships consumers have and can establish a more dynamic partnership. These brands are uniquely positioned to provide discounts, access or services that are important to the customer. Several fintechs have gained access to the payments space through optimising reward and loyalty programmes and making them more digitally compatible.
Digitally compatible rewards increase simplicity and transparency
With household possession of a mobile device at least 93% in every region around the world, consumers expect reward and loyalty programmes to be available in their hand. The success of digitally-based financial services and products and digital marketplaces highlights the consumer preference to utilise mobile devices as an access point. 27% of all retail value is expected to take place outside a store by 2029, and card reward and loyalty platforms need to be integrated into the online shopping experience to provide value to consumers. Consumers now expect reward and loyalty programmes to be digitally compatible, and they want to be able to quickly and efficiently see what benefits are available and redeem them immediately.
Card issuers and networks accept that consumers getting the most from their spending from loyalty and reward platforms is a positive cost that will drive more committed customers over the long run. Having loyalty programmes where redemption is complicated or limited is no longer effective for consumers who have come to expect more. Reward programmes that are orientated towards personalisation, leveraging merchant and brand partnerships, and also digitally compatible will be best positioned to benefit from the additional USD10 trillion credit card payment value over the next five years.
Read more about this in Euromonitor’s new global briefing, Card Rewards Evolve: Personalisation, Partnerships, and Digital Focus. For additional coverage of the Payments and Lending System, read Glocalisation in Fintech: Chinese Digital Wallets Conquering Southeast Asia.