Research from Loyalty360 and Engage People Reveals 90% of Consumers Would Pay with Points at Checkout, If It Were Seamless
Study of active reward redeemers finds demand for flexible, blended points-and-cash payment running well ahead of what
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Study of active reward redeemers finds demand for flexible, blended points-and-cash payment running well ahead of what most loyalty programs deliver today
TORONTO, ON / ACCESS Newswire / November 10, 2026 / Engage People, the only loyalty network that enables program members to pay with points directly at checkout, today released new consumer research conducted in partnership with Loyalty360, finding a strong demand for loyalty frameworks for everyday purchases.
The research, titled “Making Rewards More Valuable to Members: How Convenience and Flexible Redemption Shape the Customer Loyalty Experience”, found that everyday expenses are a more compelling redemption opportunity than aspirational rewards. Additionally, respondents find paying with a combination of points and cash appealing, although it is not the deciding factor in a purchase. Pay with Points (PwP) can make rewards a more accessible tool for everyday spending.
“Consumers have already told us what they want: the ability to use their points the way they use any other form of payment – instantly, flexibly and wherever they shop,” said Len Covello, CTO of Engage People. “The opportunity for loyalty programs is to make redemption feel less restrictive and more like everyday spending, with portability and AI working quietly in the background to make the experience easier.”
Everyday Redemption, Not Aspirational Travel, Is Where Demand Concentrates
Consumers are more interested in using points to offset everyday expenses than saving them for larger, aspirational rewards. 53% of respondents say everyday savings, including groceries, gas and restaurants, are the most valuable type of reward, compared with just 13% who prioritize larger rewards such as travel or premium experiences. Groceries and fuel top the list of where consumers most want to use points, while travel ranks fifth.
Convenience Is the Core Friction Point
61% of respondents rank convenience and simplicity among their top loyalty expectations, followed by flexible redemption options (49%) and the ability to pay with points anywhere (40%). The most common frustrations are too many restrictions or exclusions (46%), rewards that are difficult to redeem and limited redemption options (34%).
Portability Is the Growth Lever
79% of consumers want their points to work beyond the issuing brand, and 90% say cross-merchant PwP would change their behavior in some way. Nearly a third (32%) say they would move a card to top-of-wallet if points became portable across everyday merchants.
AI Is Welcome, But Only When It Works in the Background
82% of consumers want at least one AI-powered capability in their loyalty experience, most commonly alerts when points are about to lose value, personalized recommendations and automatic application of points at checkout. Yet AI ranks last among stated program priorities, with just 11% naming it among their top three expectations.
The share of consumers who do not want AI involved rises with age, from 8.8% of 18-24-year-olds to nearly 40% of consumers 65 and older.
Flexibility Beats a Single Redemption Mode
Nearly half of consumers (47%) say their redemption approach depends on the situation, rather than committing to either instant redemption or saving points for bigger rewards where people do have a fixed preference, instant redemption at checkout beats saving up, 29% to 23%.
Blended points-and-cash payment offers one way to accommodate both preferences within a single transaction.
“Consumers are signaling a shift in how they think about loyalty rewards. The value of a reward increasingly comes down to how easily and flexibly it can be used in everyday life,” said Mark Johnson, CEO of Loyalty360. “This research highlights a growing gap between what consumers expect from their loyalty programs and the redemption experiences many programs provide today. For brands, creating more seamless and flexible ways to redeem rewards can make loyalty more relevant to everyday spending and, ultimately, strengthen the value of the relationship they have with their customers.”
The full report, fielded in July 2026 from over 1,000 U.S. consumers who redeemed points, miles, or cash back in the past year, can be downloaded here. 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 Loyalty360
Loyalty360 is the association for customer loyalty. Loyalty360 provides a trusted and objective community for brands and customer loyalty professionals through research, benchmarking, conferences, awards, peer-to-peer networking, thought leadership, and educational resources.
For more information about Loyalty360 and the State of Customer Loyalty research, visit Loyalty360.org.
CONTACT:
Caliber Corporate Advisers for Engage People
engage@calibercorporateadvisers.com
SOURCE: Engage People
View the original press release on ACCESS Newswire
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