Loyalty Programs Global Market Report 2025: Growth of

Dublin, April 09, 2025 (GLOBE NEWSWIRE) — The “Loyalty Programs Market Intelligence and Future Growth Dynamics – 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics – Q1 2025 Update” report has been added to ResearchAndMarkets.com’s offering.

The global loyalty programs market is expected to grow 15.9% YoY, reaching $93.79 billion in 2025, with further growth to $155.22 billion by 2029 at a CAGR of 13.4%. Trends such as AI-powered personalization, mobile-first engagement, gamification, and ESG-linked rewards are driving adoption across retail, fintech, and travel. The rise of super apps, coalition loyalty networks, and subscription-based models is reshaping the competitive landscape.

Emerging markets are leveraging loyalty for financial inclusion, while mature economies focus on digital convenience and sustainable rewards. Businesses that embrace real-time engagement and data-driven strategies will lead in customer retention and brand loyalty over the next five years.

Digital-First and Mobile-Integrated Loyalty Programs Leading the Market

• Across regions, app-based and digital loyalty ecosystems are replacing traditional paper and card-based programs. In the U.S., Starbucks Rewards allows customers to earn and redeem points via mobile payments. In China, Alipay and WeChat Pay integrate rewards directly into mobile wallets. In Europe, Tesco Clubcard digitized its entire loyalty system, offering personalized discounts through its app.
• The widespread adoption of smartphones, mobile payments, and digital commerce pushes brands to integrate real-time, app-based loyalty programs. Consumers expect seamless, contactless experiences with AI-powered recommendations and instant rewards.
• More businesses will integrate mobile-first loyalty programs into e-commerce, fintech, and digital banking ecosystems, making real-time, data-driven engagement the industry standard.

The Rise of Subscription-Based Loyalty Programs Across Industries

• Paid loyalty programs, offering exclusive perks for a recurring fee, are gaining popularity worldwide. Amazon Prime dominates the U.S., Europe, and India, providing free shipping, entertainment, and premium shopping deals. Walmart+ in the U.S. combines in-store and online benefits. In Latin America, RappiPrime offers delivery discounts and premium merchant access.
• Consumers are willing to pay for premium experiences, convenience, and exclusive benefits. Businesses benefit from higher retention rates and predictable revenue streams, making subscription-based loyalty attractive across retail, entertainment, and travel industries.
• More industries, including healthcare, mobility, and financial services, will introduce tiered subscription loyalty models, offering cashback, free shipping, and VIP customer service to drive engagement.

Expansion of Coalition Loyalty Programs Across Regions

• Multi-brand coalition loyalty programs are expanding, allowing customers to earn and redeem points across various industries. In Germany, Payback integrates with retailers, fuel stations, and airlines. In Canada, Aeroplan partners with hotels, banks, and airlines. Livelo connects banking, retail, and travel rewards in Brazil into a unified system.
• Coalition models increase customer engagement and reduce operational costs for participating businesses. Consumers appreciate flexible redemption options, making coalition programs an attractive alternative to single-brand loyalty schemes.
• Expect cross-industry collaborations in banking, e-commerce, healthcare, and mobility, with AI-driven customer insights enhancing personalized coalition rewards.

Growth of Gamification and Engagement-Based Loyalty Programs

• Gamification is becoming a global standard for enhancing customer engagement. McDonald’s Monopoly in the UK and U.S. remains a top-performing interactive loyalty campaign. Shopee Coins and Lazada Rewards use daily check-ins and spin-to-win mechanics to engage users in Asia. In South Africa, SnapnSave offers in-app challenges to earn bonus cashback.
• Younger consumers, particularly Millennials and Gen Z, prefer interactive and engagement-driven loyalty experiences over traditional points-based rewards. The popularity of mobile gaming and social commerce has made brands invest in game-like loyalty experiences.
• Expect brands to expand gamification into banking, fitness, and healthcare loyalty programs, offering milestone-based rewards, leaderboards, and social engagement features.

Financial Inclusion-Driven Loyalty Programs in Emerging Markets

• Loyalty programs are becoming financial tools in underbanked regions, offering incentives for digital banking adoption. In Africa, M-Pesa’s Bonga Points allow customers to redeem rewards for mobile services. Mercado Pago in Latin America rewards users for digital payments. India’s Paytm First provides discounts on transactions to encourage cashless adoption.
• Millions in emerging markets lack traditional banking access, making mobile wallets and fintech platforms key drivers of financial inclusion. Businesses are using cashback and rewards to encourage the adoption of digital financial services.
• More fintech companies, banks, and governments will introduce loyalty incentives for financial inclusion, rewarding consumers for bill payments, savings, and microloans.

ESG and Sustainability-Linked Loyalty Programs Gaining Traction

• Sustainability is becoming a key loyalty driver, with brands offering green rewards. Etihad Airways’ Conscious Choices Program encourages eco-friendly travel. H&M’s Conscious Points in Sweden rewards customers for recycling clothes. In Australia, Qantas’ Green Tier Program incentivizes sustainable travel choices.
• Governments worldwide are introducing ESG regulations, and consumers demand more eco-conscious loyalty incentives. Brands are aligning sustainability goals with customer engagement strategies.
• More industries, from fashion to finance, will integrate carbon offset rewards, sustainable product discounts, and green loyalty incentives to appeal to ethical consumers.

Competitive Landscape of the Global Loyalty Market

The global loyalty market remains highly competitive, with consolidation in mature markets and fragmentation in emerging regions. The rise of super apps, AI-driven personalization, and ESG-linked loyalty programs will drive the next phase of industry transformation. Over the next 2-4 years, businesses that integrate data-driven insights, flexible redemption options, and sustainability-linked incentives will maintain a strong competitive advantage in the evolving loyalty landscape.

Competitive Intensity and Market Structure

• High competition across industries: The loyalty market is highly competitive, with brands from retail, banking, travel, and telecom offering rewards to increase customer retention. The rise of digital-first platforms such as Rakuten Rewards (Japan, U.S.), Amazon Prime (Global), and Mercado Puntos (Latin America) has intensified competition, forcing traditional loyalty providers to innovate.
• Super apps and fintech firms driving disruption: In Southeast Asia, Latin America, and Africa, super apps and fintech startups are reshaping the loyalty market by integrating rewards with mobile payments and financial services. Platforms like WeChat Pay (China), GrabRewards (Southeast Asia), and RappiPrime (Latin America) challenge traditional coalition programs by offering multi-service loyalty ecosystems.
• Differentiation through personalization: The saturation of loyalty programs means brands must leverage AI, machine learning, and behavioral analytics to customize rewards and engagement strategies. Companies like Starbucks Rewards (U.S.), Carrefour MyClub (Middle East), and Tesco Clubcard (UK) use AI-driven insights to deliver targeted promotions and predictive discounts.

Types of Players in the Loyalty Market

• Coalition loyalty programs leading in mature markets: In Europe, North America, and parts of Latin America, coalition programs such as Payback (Germany, India, Mexico), Nectar (UK), and Aeroplan (Canada) dominate. These programs offer consumers cross-brand earning and redemption flexibility, making them highly attractive.
• Fintech-driven and e-commerce loyalty programs rising: In emerging markets, fintech and e-commerce players like Shopee Coins (Southeast Asia), Mercado Puntos (Latin America), and Nubank Rewards (Brazil) are creating cashback-driven and digital-first loyalty ecosystems to drive mobile engagement.
• Retail, travel, and hospitality players investing in standalone programs: Industry-specific loyalty programs such as McDonald’s MyRewards (Global), Qantas Frequent Flyer (Australia), and Marriott Bonvoy (Global) differentiate by offering exclusive benefits, status-based perks, and gamified engagement.

Market Fragmentation vs. Consolidation

• Mature markets are more consolidated: In North America, Europe, and Japan, the loyalty market is dominated by a few major players, such as Visa and Mastercard’s co-branded credit card programs, subscription-based Amazon Prime, and multi-brand coalition networks. New entrants struggle to disrupt these markets due to established consumer habits and strong brand loyalty.
• Emerging markets remain highly fragmented: In Southeast Asia, Latin America, and Africa, loyalty programs are localized, with multiple small players competing in fintech, e-commerce, and retail sectors. Platforms such as Twiga Foods (Kenya), Cencosud Points (Chile), and Paytm First (India) thrive in these highly competitive but fragmented ecosystems.
• Super apps are consolidating regional markets: Digital platforms such as Grab (Southeast Asia), WeChat (China), and Rappi (Latin America) are consolidating loyalty rewards across ride-hailing, banking, shopping, and entertainment, forcing standalone loyalty providers to adapt or integrate with these ecosystems.
• High customer acquisition and retention costs: Establishing a new loyalty program requires significant technological investment, AI-driven personalization, and marketing to compete with established players. Programs like Amazon Prime and Starbucks Rewards have a strong first-mover advantage, making it difficult for new entrants to gain traction.
• Regulatory and data privacy constraints: Strict data protection laws such as GDPR (Europe), CCPA (California), and China’s PIPL create challenges for loyalty providers looking to scale internationally. Loyalty programs like Payback (Germany) and Aeroplan (Canada) must navigate complex compliance frameworks to ensure data privacy.
• Evolving consumer expectations make differentiation difficult. Consumers now expect real-time rewards, instant cashback, and AI-driven personalization, making traditional point-based systems less appealing. To stay competitive, brands like McDonald’s, MyRewards (Global), and Walmart+ (U.S.) integrate digital convenience, gamification, and subscription models.

Competitive Shifts Over the Next 2-4 Years

• Mergers and acquisitions will drive market consolidation: Leading loyalty providers will acquire fintech startups, AI-driven personalization platforms, and digital rewards companies to expand their capabilities. For instance, Visa’s acquisition of Plaid will likely influence how payment-based loyalty programs evolve, while major retailers will continue acquiring smaller loyalty tech firms to enhance customer engagement.
• AI-driven and blockchain-based loyalty programs will emerge: AI will enhance real-time predictive rewards, while blockchain technology could revolutionize decentralized loyalty points and transparent coalition programs. For instance, Lufthansa’s Uptrip blockchain-powered loyalty program is an early indicator of how blockchain-based rewards could gain traction.
• Sustainability-linked loyalty programs will become a competitive advantage: Consumers prefer brands that reward eco-conscious behaviors, pushing companies to introduce carbon offset rewards, green product discounts, and ESG-integrated loyalty strategies. For instance, Qantas’ Green Tier Program in Australia and Etihad Airways’ Conscious Choices Program are among the first to integrate sustainability into loyalty tiers.

Key Attributes:

Report Scope

Regional and country reports in this bundled offering provide in-depth analysis of loyalty programs. Below is a summary of key market segments.

• Retail Sector Spend Value Trend Analysis
• Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators
• Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains
• Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type
• Loyalty Spend Market Size and Future Growth Dynamics by Channel
• Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model
• Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors
• Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online
• Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store
• Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App
• Loyalty Spend Market Size and Future Growth Dynamics by Retail
• Loyalty Spend Market Size and Future Growth Dynamics by Accessibility
• Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type
• Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type
• Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case
• Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner
• Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment
• Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms
• Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms
• Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour

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• Global Loyalty Programs Market