Loyalty Programs Push Shoppers to Overspend

AMP research finds 27 per cent of Australians have spent more than intended to chase rewards points.

Updated on Nov. 10, 2026 in Couponing

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Do you think loyalty rewards programs end up costing you more than they save?

AMP national research found 27 per cent of Australians have spent more than intended to chase rewards. The ACCC reports 90 per cent of consumers are enrolled in at least one customer loyalty program.

Why it matters

Loyalty points are often perceived as free money, which can encourage purchases shoppers would not otherwise make. Rising cost-of-living pressures make unplanned spending on rewards a significant household budget concern.

AMP research shows 27 per cent of Australians have spent more than intended chasing rewards, while 58 per cent hold points balances without knowing their dollar value. Among Gen Z shoppers aged 18 to 29, almost two in five have rushed a purchase to earn points.

The players

AMP

AMP is an Australian financial services company that conducted the national research on consumer loyalty program spending.

Australian Competition and Consumer Commission (ACCC)

The ACCC is Australia's national competition and consumer regulator, which reports on consumer loyalty program enrolment.

The details

The ACCC reports 90 per cent of consumers are enrolled in at least one customer loyalty program, with Woolworths Everyday Rewards, Flybuys, Qantas Frequent Flyer and Virgin Australia Velocity among the dominant schemes. Fast food companies also promote loyalty apps that let customers earn points for discounted and free menu items.

Ongoing: the cost-of-living squeeze is shaping how consumers spend on loyalty programs.

Culture Shift

With 90 per cent of consumers enrolled in at least one program according to the ACCC, loyalty schemes have become a near-universal part of Australian shopping. The shift means reward points now shape purchasing decisions for most households rather than sitting at the edge of everyday spending.

Check your loyalty points balance in dollar terms before making a purchase to earn them. Avoid buying items you would not otherwise need simply to bump a points total.

The takeaway

Points only add value when the purchase was already planned. Comparing the real dollar cost of a reward against the price of the item helps keep spending on track.