Innovation in Payments - Reward Programs, Payment Loyalty and Consumer Attitudes

Innovation in Payments - Reward Programs, Payment Loyalty and Consumer Attitudes

Summary

The concept of loyalty programs can be traced back over a century, to retailers and gas stations that offered customers stamps based on their spending. The accumulated stamps could be exchanged for a range of gifts from a catalog offered by these businesses. Credit card loyalty schemes have rapidly expanded to include frequent flyer points (air miles); collaborations with retailers; and tiered, increasingly individualized and exclusive benefits that operate across multiple platforms and partners. Ultimately, consumers like being rewarded for their patronage – even if they pay for it.

However, Payment Loyalty programs have lost attractiveness in recent years majorly due to COVID-19 pandemic impact and market saturation. Furthermore, reward programs appeal has diminished in recent years. Whereas points schemes were once the major draw of credit cards, now consumers favor cashback on their purchases.

Innovation in Payments - Reward Programs, Payment Loyalty by Region and Consumer Attitudes report explores trends and innovations in terms of the reward programs offered by banking and payment providers, including an exploration of the various approaches companies are taking across the world

Scope

• Alternative payment methods have disrupted the payments space. To address such challenges, credit cards fees have been reduced across the world. However, these reductions mean that issuers have had to scale back their loyalty programs.
• The COVID-19 pandemic heavily impacted the travel industry. Consumers who used to be frequent travelers dramatically reduced their spending on big-ticket items such as flight and hotel bookings, meaning that travel benefits became much less appealing.
• Due to consumers switching providers repeatedly to maximize short-term benefits, issuers have attached conditions for releasing bonuses, such as reaching specific spending milestones on cards.

Reasons to Buy

• Understand current and future trends for card-based reward programs.
• Identify key players in the reward program space and learn about their offerings.
• Discover consumer preferences and attitudes towards reward programs using GlobalData surveying.