Singapore Loyalty Programs Market Intelligence and Future Growth Dynamics - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2025 Update

According to PayNXT360, loyalty market in Singapore is expected to grow by 14.4% on annual basis to reach US$501.5 million in 2025.

In value terms, the loyalty market in the country has recorded a CAGR of 16.2% during 2020-2024. The loyalty market in the country will continue to grow over the forecast period and is expected to record a CAGR of 12.1% during 2025-2029. Loyalty market in the country is expected to increase from US$438.4 million in 2024 to reach US$792.9 million by 2029.

This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of end-use sectors and market segments in Singapore. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Key Insights

Loyalty programs in Singapore are undergoing significant transformation, driven by changing consumer expectations and industry competition. Non-expiring points and cashback rewards have emerged as essential features, with programs like NTUC FairPrice's Link Rewards and DBS Bank's Live Fresh Cashback Credit Card catering to consumers seeking flexibility and tangible benefits. This trend reflects the growing demand for long-term value and convenience, particularly in retail and banking. As competition intensifies, companies that fail to adopt such consumer-centric models risk losing customer loyalty, while those that innovate further will solidify their position in the market.

In parallel, digital integration, sustainability initiatives, and collaborative ecosystems reshape the loyalty landscape. Programs like GrabRewards and Yuu Rewards Club exemplify the shift towards mobile-first and multi-brand strategies, appealing to Singapore's tech-savvy and interconnected population. Additionally, the rise of e-commerce platforms such as Shopee and Lazada has fueled tailored loyalty initiatives, while sustainability-focused programs like Singlife with Aviva align with government-led environmental goals. Together, these developments highlight the dynamic nature of Singapore's loyalty program ecosystem, where innovation, technology, and collaboration will drive future growth and engagement.

Emphasis on Non-Expiring Points and Cashback Rewards

• Consumers in Singapore increasingly prefer loyalty programs offering non-expiring points and cashback incentives. Programs such as NTUC FairPrice's Link Rewards and DBS Bank's Live Fresh Cashback Credit Card have gained traction by allowing members to accumulate rewards without expiration, fostering long-term engagement.
• The retail and financial services sectors are highly competitive in Singapore. Customers expect greater flexibility and tangible benefits for their loyalty. Retailers like NTUC FairPrice, which serves a significant portion of the population, incentivize everyday purchases through cashback or point-based rewards. Similarly, DBS Bank’s cashback program caters to Singapore’s tech-savvy population that prioritizes convenience and visible value in financial products.
• This trend will continue to grow as consumers increasingly demand value-driven loyalty programs. Businesses unable to offer flexible benefits such as non-expiring rewards risk losing customer engagement. Companies across the retail and banking sectors are expected to innovate further in this space to maintain relevance.

Rise of Group and Partner Loyalty Programs

• Collaborative loyalty programs, where consumers can earn and redeem rewards across multiple brands, are gaining popularity in Singapore. The Yuu Rewards Club, a collaboration between Dairy Farm International (DFI), Giant, 7-Eleven, and other brands, is a prime example. This program allows users to earn points from purchases at partner stores and redeem them across the network.
• Partnerships across retailers provide an expanded rewards ecosystem, appealing to Singaporean consumers who value convenience and diversity in benefits. Businesses benefit by sharing operational costs and expanding their customer base. This strategy is particularly effective in Singapore's dense urban population and interconnected shopping preferences.
• Such partnerships will likely expand, with new entrants collaborating to create competitive ecosystems. The success of Yuu Rewards will encourage other sectors, such as travel and hospitality, to adopt similar multi-brand loyalty programs.

Digitalization and Mobile Integration of Loyalty Programs

• There is a growing shift toward mobile app-based loyalty programs in Singapore. For instance, Grab's GrabRewards program allows users to earn points for every transaction on the platform, from ride-hailing to food delivery, and redeem these points for discounts and partner offers.
• Singapore has one of Southeast Asia's highest smartphone penetration rates, making mobile-first strategies essential. E-commerce platforms and digital services such as Grab leverage this behavior to integrate loyalty seamlessly into their apps. Consumers value the convenience of tracking, earning, and redeeming rewards in real-time, directly on their mobile devices.
• Digitalization of loyalty programs will become the norm. Companies that fail to adopt user-friendly mobile platforms risk losing relevance. Enhanced features like gamification, personalized rewards, and real-time notifications will drive customer engagement.

Popularity of Customer Reward Programs in Retail

• Loyalty programs tied to grocery and retail sectors dominate consumer preferences in Singapore. NTUC FairPrice’s Link Rewards and Dairy Farm International’s Yuu Rewards Club are widely recognized and frequently used programs.
• The essential nature of grocery shopping ensures consistent consumer participation in these programs. Retailers recognize this and offer tailored incentives, such as discounts and free products, directly impacting consumers' daily spending habits. For instance, Link Rewards offers points for purchases and exclusive member discounts on selected items.
• The dominance of retail-focused loyalty programs will likely continue, with retailers enhancing features such as real-time discounts and personalized promotions based on shopping behavior. This trend will reinforce customer retention and encourage higher spending per visit.

Growth of the E-Commerce Market Influencing Loyalty Programs

• The rapid growth of e-commerce platforms like Shopee and Lazada in Singapore has led to loyalty programs tailored specifically for online shoppers. Lazada’s LazCoins and Shopee’s Shopee Coins programs incentivize frequent purchases by offering discounts and cashback.
• E-commerce’s convenience and growing adoption, accelerated by the COVID-19 pandemic, have created a need for platforms to differentiate themselves. Programs like LazCoins and Shopee Coins keep customers engaged by rewarding repeat purchases. Singapore’s digitally literate population and preference for online shopping have further accelerated this trend.
• As e-commerce platforms expand their offerings, loyalty programs are expected to become more personalized, leveraging advanced analytics to recommend products and customize rewards. This trend will also drive increased competition among e-commerce players to retain customers.

Integration of Sustainability into Loyalty Programs

• An emerging trend in Singapore is the integration of sustainability into loyalty programs. For instance, Singlife with Aviva, an insurance provider, has a loyalty program that rewards customers for adopting eco-friendly behaviors, such as reducing their carbon footprint.
• Singapore's government initiatives promoting sustainability, such as the Green Plan 2030, have increased consumer awareness about eco-friendly practices.
• This trend is expected to gain momentum as sustainability becomes a critical focus for businesses and consumers. Companies integrating green initiatives into their loyalty strategies will strengthen their brand image and appeal to younger, eco-conscious demographics.

Competitive Landscape in Singapore’s Loyalty Market

The loyalty market in Singapore is characterized by high competitive intensity, with dominant players such as NTUC FairPrice, DBS Bank, Grab, Shopee, and Lazada offering diverse and well-established programs. These players leverage innovative features like cashback, non-expiring rewards, and cross-sector collaborations to maintain their stronghold. While the market has some fragmentation due to smaller niche players, barriers to entry remain significant as new entrants struggle to differentiate themselves in a landscape dominated by large-scale programs and entrenched customer bases. The semi-consolidated structure gives major players a competitive advantage, with multi-brand programs like Yuu Rewards raising the bar for market participation.

Over the next 2-4 years, the competitive landscape will evolve through market consolidation, with larger players acquiring niche programs to expand their ecosystems. Adopting advanced analytics and AI will drive hyper-personalized offerings, while increased partnerships and the entry of regional players like Indonesia's GoTo and Malaysia's Boost will intensify competition. Regulatory changes, including stricter data privacy enforcement and consumer protection measures, shape a transparent and fair market. Additionally, the government's Green Plan 2030 pushes businesses to incorporate sustainability into their loyalty strategies, creating opportunities for eco-conscious niche players to carve out market segments. These factors will foster a dynamic and increasingly customer-focused loyalty market in Singapore.

Overview of Competitive Intensity

• The loyalty market in Singapore is highly competitive, with players from diverse sectors such as retail, banking, telecommunications, and e-commerce vying for consumer attention. Key players include NTUC FairPrice, DBS Bank, Grab, Shopee, Lazada, and Dairy Farm International (DFI). These companies dominate the market by offering programs tailored to consumer needs, such as cashback, non-expiring rewards, and sustainability-focused incentives.
• While large, well-established players dominate, the market also sees participation from smaller niche players, such as boutique retailers and specialty e-commerce platforms, contributing to market fragmentation. However, the presence of dominant players creates barriers for new entrants, who struggle to differentiate themselves in a market saturated with robust loyalty offerings.

Type of Players and Market Structure

The market is divided between large, multi-sector players and smaller, sector-specific operators:
• Companies like Grab and Yuu Rewards Club integrate offerings across multiple sectors, increasing customer convenience and engagement.
• NTUC FairPrice and DBS Bank focus on loyalty within their domains, leveraging their dominance in retail and financial services, respectively.
• Despite some fragmentation, a few key players wield significant market control due to their extensive customer bases and well-established loyalty programs. This semi-concentrated structure gives larger companies an edge in maintaining market leadership.
• While the loyalty market is not overly fragmented, multiple players across diverse industries create stiff competition. However, a few dominant players, such as Grab and NTUC FairPrice, control significant market share due to their broad customer base and frequent consumer touchpoints.
• Established players like NTUC FairPrice and DBS Bank have entrenched consumer bases, making it difficult for new entrants to attract customers.
• Programs like Yuu Rewards benefit from strong multi-brand collaborations, presenting a challenge for new entrants lacking similar networks.

Expected Competitive Landscape over the Next 2-4 Years

• Larger players will likely acquire smaller or niche loyalty programs to consolidate market share and enhance their offerings. For instance, partnerships between NTUC FairPrice and digital platforms like Grab could create stronger ecosystems covering physical and digital retail touchpoints.
• Advanced analytics and AI will be critical in loyalty programs, enabling hyper-personalized rewards and experiences. For example, Grab may leverage AI to recommend tailored rewards for frequent users based on their spending habits, enhancing user engagement and retention.
• We expect increased partnerships among competitors to create shared ecosystems similar to the Yuu Rewards Club model. For instance, a collaboration between e-commerce giants Shopee and Lazada could pool loyalty rewards, offering customers broader usage options and fostering co-opetition.
• Regional players from neighboring Southeast Asian markets, such as Indonesia’s GoTo or Malaysia's Boost, will likely enter Singapore's loyalty market. These players will aim to tap into Singapore's affluent consumer base by offering competitive digital-first solutions and benefits tailored to local preferences.
• While dominant players consolidate their positions, niche players focusing on sustainability, hyper-local benefits, or innovative technologies will capture specific market segments. For instance, a loyalty program aligned with Singapore’s Green Plan 2030, rewarding consumers for eco-friendly behaviors, could attract environmentally conscious customers.

Regulatory Changes in the Past 12 Months

Regulations affecting loyalty programs in Singapore focus primarily on consumer protection, data privacy, and competition laws, ensuring fair practices across industries. Notable regulatory developments include:
• Singapore’s Personal Data Protection Act (PDPA) has seen updates in enforcement over the last 12 months, emphasizing stricter compliance with consumer data protection. Loyalty programs now face heightened scrutiny to ensure secure handling of customer data and transparency in how personal information is used to provide personalized rewards. Violations may result in fines or other legal repercussions, forcing companies to invest in better data security infrastructure.
• The Competition and Consumer Commission of Singapore (CCCS) has increased oversight on loyalty programs to ensure fair trade practices. Transparency in terms and conditions, especially concerning point expiry, redemption policies, and cashback offers, is now a regulatory priority. Programs found misleading consumers or employing restrictive clauses risk penalties, further ensuring a consumer-friendly landscape.
• Singapore’s focus on sustainability is evident in the government’s Green Plan 2030, which has encouraged businesses to align their loyalty programs with eco-friendly goals. Regulatory incentives have been introduced for companies adopting green practices, indirectly shaping loyalty strategies that reward environmentally conscious behaviors.

Scope

This report provides in-depth, data-centric analysis of loyalty programs in Singapore. Below is a summary of key market segments:

• Singapore Retail Sector Spend Value Trend Analysis
Ecommerce Spend
POS Spend

Singapore Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

Value Accumulated and Value Redemption Rate of Loyalty programs in Singapore

• Singapore Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains
Loyalty Schemes
Loyalty Platforms

• Singapore Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type
Points programs
Tier-based programs
Mission-driven programs
Spend-based programs
Gaming programs
Free perks programs
Subscription programs
Community programs
Refer a friend program
Paid programs
Cashback programs

• Singapore Loyalty Spend Market Size and Future Growth Dynamics by Channel
In-Store
Online
Mobile

Singapore Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model
Seller Driven
Payment Instrument Driven
Others

• Singapore Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors
Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment
Others

• Singapore Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online
Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment
Others

• Singapore Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store
Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment
Others

•Singapore Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App
Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment
Others

• Singapore Loyalty Spend Market Size and Future Growth Dynamics by Retail
Diversified Retailers
Department Stores
Specialty Stores
Clothing, Footwear & Accessories
Toy & Hobby Shops
Supermarket and Convenience Store
Home Merchandise
Other

• Singapore Loyalty Spend Market Size and Future Growth Dynamics by Accessibility
Card Based Access
Digital Access

• Singapore Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type
B2C Consumers
B2B Consumers

• Singapore Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type
Free
Free + Premium
Premium

• Singapore Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case
Analytics and AI Driven
Management Platform

• Singapore Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner
In House
Third Party Vendor

• Singapore Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment
Cloud
On-Premise

• Singapore Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms
Software
Services

• Singapore Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms
Custom Built Platform
Off the Shelf Platform

• Singapore Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour
By Age Group
By Income Level
By Gender

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the loyalty programs and platforms market by understanding strategic initiatives taken by key players to gain market share and innovation.

• In-depth Understanding of Loyalty Market Dynamics in Singapore: Understand emerging opportunities and future direction of the loyalty programs and platforms market, key drivers, and trends. Benefit from a detailed market segmentation with 50+ KPIs.

• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.

• Competitive Landscape: Get a snapshot of competitive landscape with key players and market share in Singapore. Formulate your strategy by gaining insights into the current structure of the market.

• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the loyalty sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.

• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.