According to Engage People’s Flexible Loyalty: Consumers Shifting Values as the Landscape Changes, 79% of respondents reported using Pay with Points at checkout in-store and online, which is double the amount from 2023. Back then, only 37% respondents had tried using the method, and almost half were completely unfamiliar with it as a payment option.
The survey, which was conducted among 752 U.S.-based consumers in August 2025, found that Pay with Points, which was once an unfamiliar payment method, has become a mainstream redemption choice.
The loyalty program landscape is constantly shifting, with consumers driving the change in favor of flexible, instant transactional redemptions to reduce purchase price at checkout instead of delayed benefits, such as credit card statement credits. The top three factors driving shifts in loyalty programming are:
Flexibility (96%) – How points are redeemed is an important consideration when choosing a retailer;
Cost (71%) – A strong incentive to save money on purchases through points; and
Access (54%) – Consumers value retailers who enable PwP at the point of checkout.
“Loyalty today is shaped entirely by consumer expectations, and those are higher than ever across the entire ecosystem,” said Len Covello, CTO of Engage People. “Technology allows us to unify rewards across brands and platforms, giving consumers the choice, convenience and purchasing power they expect.
“But it goes beyond flexibility. When rewards feel meaningful and easy to use, the relationship becomes more than transactional; it becomes a source of real, lasting value that keeps people coming back. We believe that Pay with Points is a great way to deliver meaningful rewards to consumers.”
Flexibility has emerged as the new currency of loyalty, with 96% of respondents saying it’s important to have control over when and where they redeem their rewards points. The lead drivers for this trend are:
Finding value with points (54%) – Participants are gravitating toward programs that make redemption simple and immediate at the point of purchase.
Utilizing options like Pay with Points and cash back at checkout (62%) – Consumers ranked these redemption options highly as a means to control how and when they use points.
Paying with points is no longer an optional feature; it has become a core expectation in loyalty ecosystems. Enabling consumers to make purchases that align with their individual needs delivers emotional value, fostering greater loyalty for those brands.
This year’s report indicated that consumers value the ability to use points to reduce total purchase costs above the use of traditional discounts:
Lowering purchase cost at checkout (71%) – Consumers are motivated to use redemption options to save money on purchases.
The use of traditional discounts (6%) – Coupons and discounts tied to specific products are far less motivating for shoppers today.
Last year’s research underscored how financial-based rewards, including PwP, have become increasingly essential for driving retention and sustaining consumer engagement. This year’s findings further emphasize the importance of PwP, consumers’ growing interest in new flexible redemption options, and the continued shift that is turning loyalty programs into a form of currency.
Bill Hanifin, CEO of Wise Marketer Group, the firm which conducted the study, commented,
“Brands are always seeking to build strong emotional ties with customers, and the research showed that these bonds, based on shared values and experiences, go far beyond product features. Today, consumers are prioritizing practical, real-world applications of loyalty points that help manage everyday expenses. The emotional and financial elements of loyalty programs are converging as members are using rewards to preserve capital and improve their quality of life.”