Report uncovers clear demand for flexibility within loyalty programs as 96% of respondents value the ability to select when and whether they redeem points
TORONTO, CANADA – December 3, 2025 – Engage People, the only loyalty network that enables program members to pay with points directly at checkout, commissioned its annual survey from The Wise Marketer as part of its ongoing research series on consumer loyalty trends titled “Flexible Loyalty: Consumers Shifting Values as the Landscape Changes.”
The report found that in 2025, 79% of respondents reported using Pay with Points (PwP) at checkout in-store and online, which is double the amount from two short years ago in 2023, where only 37% respondents had tried using PwP, and almost half were completely unfamiliar with PwP as a payment option. This underscores the growing demand for flexibility and utility in loyalty programs among consumer preferences.
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, highlighting clear momentum in consumer awareness and comfort with utilizing points in real-time at checkout.
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
- 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 Drives Engagement and Creates Emotional Value
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.
PwP 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.
Preserving Capital Value Over Traditional Discounts
This year’s report indicated 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 in order 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, 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.”
Discover how Engage People can help your loyalty program drive engagement with PwP by visiting www.engagepeople.com.
About Engage People
Engage People is the only loyalty network that enables program members to pay with points directly at checkout. The global technology provider connects loyalty programs with global payment systems and online retailers and covers 100% of the top purchase categories in North America. Leading banks and retailers around the world rely on Engage People for its first-of-its-kind loyalty network and pay-with-points capabilities. Engage People is headquartered in Toronto, Ontario, Canada and has offices in the U.S., Canada, and Italy. For more information, visit: www.engagepeople.com.
About The Wise Marketer Group
Wise Marketer Group (WMG) is a global customer engagement and loyalty media company that delivers timely and unbiased publishing, research, and educational products to a worldwide audience of marketing professionals. The Wise Marketer online publication is the most widely read news source for customer engagement and loyalty marketers. The Loyalty Academy is the only source for marketers to earn the Certified Loyalty Marketing Professional™ (CLMP) designation through comprehensive education and corporate training programs. WMG has two decades of experience covering, commenting on, and educating loyalty practitioners with a readership base and network of CLMPs in 130 countries. For more information, visit: www.thewisemarketer.com.
Media Contact
Nicole Lombardo
Caliber Corporate Advisers for Engage People