An emerging trend that has captured the attention of both consumers and industry observers is the rise of Pay With Points. This innovative loyalty solution engages cardholders with real-time notifications and engagement. Once enrolled, cardholders can redeem points directly after purchase for a statement credit to cover the cost of their purchase. 

“Real-Time Rewards, like Pay With Points, are key in driving seamless and interactive redemptions while putting the financial institution’s brand in front of the cardholder,” says Rachael Peterson, VP of Client Success and Development at ampliFI Loyalty Solutions. 

Pay With Points offers financial institutions a unique value proposition that distinguishes them from their peers. Backed by insightful research, the data paints a compelling picture of the growing demand and potential impact of Pay With Points on consumer spending habits.

Catering to Consumer Expectations

Amid inflationary pressures, the demand for Real-Time Rewards like Pay With Points is driven by cost-saving, flexibility, and convenience. Across demographic lines, the allure of Pay With Points is strong, with 84% of respondents1 likely to utilize this redemption method in the future.

“Pay with Points is quickly becoming the leading redemption choice for cardholders,” says Peterson. “The ease of redemption via email or text engages prior non-redeemers into redemptions and drives top-of-wallet spend.”

For traditional financial institutions, integrating Pay With Points into their loyalty programs can be a powerful tool to enhance consumer engagement and loyalty. By offering consumers the ability to seamlessly redeem points for purchases in real time, financial institutions can cater to evolving consumer preferences for instant gratification and tangible rewards.

Cardholder rewards program best practices

Maximizing Card Usage and Savings with Pay With Points

According to the CFBP2, between 2019 and 2022, there was a significant increase of 58% in rewards earnings for general-purpose cardholders, which rose from $26.1 billion to an estimated $41.1 billion. This surge was mainly driven by the growth in points, indicating that consumers are increasingly drawn to them as a form of reward.

This shift has significant implications for financial institutions. Incorporating and emphasizing point-based rewards in loyalty programs can be a strategic approach to meet and exceed consumer expectations. Adapting your offerings to align with evolving consumer preferences can ensure that your loyalty program resonates with the changing financial sector rewards landscape.

“The amazing thing about Pay with Points is that the financial institution can have a lower value per point than traditional redemption items, but cardholders are still using it because of the convenience it provides,” explains Peterson. “So the financial institution is getting more engagement, spend, and retention at a lower cost per point to the institution than traditional cash back redemptions. It is a win-win!”

According to the data, consumers are willing to switch credit or debit cards to maximize Pay With Points benefits. This presents a clear market opportunity for financial institutions to differentiate their offerings and capture market share. By incorporating Pay With Points into their loyalty programs, financial institutions can tap into this demand and position themselves as innovators in the evolving landscape of redemption options.

Reshaping Consumer Engagement

Pay With Points has transformative potential to reshape consumer spending habits and drive engagement. Embracing Pay With Points as part of a loyalty program is a strategic imperative and a proactive step toward meeting today’s consumers’ needs. By leveraging Pay With Points, financial institutions can unlock new opportunities for growth and differentiation in an increasingly competitive marketplace.

At ampliFI, we’re excited to take your loyalty solutions to new heights. Connect with our team at or click the link below to get started.

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2The Financial Brand: CFBP Report