Engage People, the loyalty network that enables program members to pay with points directly at checkout, commissioned a new survey to gain insights.
The new survey, from The Wise Marketer titled “Paying with Points – “Tomorrow” Is Too Late,” examines the use of “pay with points” as a payment option.
The report examines consumer behavior and perspectives on “using loyalty currency for redemption online and in stores to realize immediate value.”
The survey, which was “conducted among 1,000 U.S.-based consumers in October 2023, found a strong appeal for Pay with Points (PwP) as a redemption option, with 84% of consumers reporting they would use this loyalty currency in the future if offered.”
That’s reportedly up “from 80% of respondents who said they would be likely to use pay with points if available in The Wise Marketer’s 2022 Rewards Redemption Survey: US Consumer Attitudes and Preferences.”
In addition, 76% of consumers “expressed a willingness to change credit cards to access improved PwP benefits.”
This inclination is particularly notable “among those with retail cards, showing a stronger desire to change cards for the perks of PwP compared to bank cardholders.”
Len Covello, CTO of Engage People, said:
“This year’s findings underscore continued growth in demand from consumers for reward programs that offer the ability to pay with points, and a strong interest in utilizing reward points for essential, every-day expenses like groceries, online shopping, fast food, and gas. Retailers have a unique opportunity to enhance their loyalty programs by customizing them to include better redemption options through point accumulation, and meet the evolving preferences and needs of their customer base.”
The Wise Marketer survey also found “that the primary motivation for using PwP is to save money and combat inflation by reducing purchase expenses.”
When indicating preferred redemption locations, respondents “mainly selected grocery stores (62%), online retail (56%), gas stations or convenience stores (52%), and fast-food restaurants (45%) for utilizing their loyalty points.”
Roughly 37% of respondents “reported having used PwP one or more times, while 43% were either aware of PwP but had yet to encounter it or were unfamiliar with it as a payment choice.”
This presents a notable opportunity “for banks, retailers, and their partners to leverage the growing demand for PwP in their loyalty and rewards programs, particularly in key redemption locations.”
Mike Capizzi, Dean of The Loyalty Academy and who led the research said:
“Pay with Points is a format that over the past few years has marked a significant shift in the way customers interact with loyalty programs and payment options. PwP represents a convergence of reward systems and transactional processes, offering customers a novel and potentially appealing way to utilize their accumulated loyalty points directly at the point of sale.”