New research from global fintech Revolut shows that loyalty programs pack a serious punch when it comes to boosting spending, but clunky checkouts and dodgy-looking payment pages are still sending shoppers running for the hills.

The YouGov study, based on 1,000 Australians aged 18 to 65+, found a whopping 77 per cent of us spend more when we’re earning loyalty rewards. That number jumps to 88 per cent for Gen Z and 90 per cent for Millennials, proving younger Aussies are leading the charge in chasing points, cashback and perks.

Revolut says the data backs what retailers have been feeling for years: loyalty isn’t just a nice-to-have anymore, it’s a major driver of customer behaviour.

“Australian shoppers are no longer loyal by habit. They’re loyal by value,” said Sam Roberts, Head of Product at Revolut Australia. “Consumers now expect real rewards that feel tangible, instant, and personal. Our data shows that when loyalty programs deliver meaningful benefits, it’s a win-win for retailers. It’s about creating a safe and secure shopping experience that genuinely rewards participation.”

Loyalty programs are everywhere

If it feels like every man and his dog has a rewards app, you’re not imagining it. In 2024, loyalty-program participation grew 18 per cent year on year, and 85 per cent of Australians are now signed up to at least one scheme.

Revolut’s data shows that loyalty members spend nearly 25 per cent more than non-loyalty customers; however, they’re choosy:

• 61 per cent will switch to a retailer or financial provider offering better or faster rewards
• 55 per cent prefer stronger cashback options
• 24 per cent want access to exclusive discounts

Younger shoppers are even more reward-hungry. On Revolut’s platform, 82 per cent of active loyalty users are Gen Z or Millennials, and they’re not shy about ditching carts if the value isn’t there: 22 per cent of Gen Z and 20 per cent of Millennials say a lack of earned rewards is enough to abandon checkout altogether.

The study also found security fears and friction kill sales. While rewards motivate spending, Australians are equally focused on the full shopping experience. A flash sale or juicy reward won’t mean much if the checkout feels painful or unsafe.

The research highlights three big conversion killers: 53 per cent of Aussies bail due to security concerns; 44 per cent abandon carts over added shipping costs and 44 per cent say slow checkout processes turn them off entirely.

While loyalty might get customers to the checkout, it doesn’t guarantee they’ll actually click ‘buy now’.

“The data suggests that while loyalty programs bring customers to the checkout, it’s the checkout experience that ultimately wins or loses the sale,” said James Roberts-Thomson, Head of Revolut Business at Revolut Australia. “Likely fuelled by inflation, shoppers are shifting to a preference for real value like cashback. Today’s browsers demand clear pricing, trusted payment options, and a fast, intuitive flow. A 360-degree approach that prioritises seamlessness and security positions businesses to succeed.”

A 360-degree customer experience

Revolut says Aussie businesses need to think beyond points and perks. The next frontier is what they’re calling a “360-degree experience”. A customer experience that blends: real, easy-to-redeem rewards, transparent pricing, a friction-free checkout and secure, trusted payment options like Visa, Mastercard or tools such as Revolut Shopper.

Just one month after launching its new rewards platform RevPoints, more than 50,000 Australians have already jumped on board.

For small businesses, that’s a sign the bar has been lifted. Shoppers want rewards, combined with a smooth, secure checkout experience. They want to check out quickly. They want zero surprises at the end. And if they don’t get that experience? They’ll happily switch providers or walk away from the sale entirely.

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