Why Banks Offer Up to 50X Credit Card Reward Points on Loyalty Portals?

Banks in India are significantly increasing reward point multipliers on credit card spends via their loyalty portals. These reward boosts, reaching up to 50X, are designed to encourage cardholders to make lifestyle and travel purchases through these platforms, enhancing both profitability and customer retention.

Higher Reward Multipliers to Attract Premium Customers

Top banks like HDFC Bank, American Express, Axis Bank, and IDFC First Bank are offering up to 50X reward points on select credit card spends, especially for hotel and flight bookings via their loyalty portals. 

HDFC Bank's SmartBuy gives Infinia cardholders up to 10X points on hotels equating to ₹1 per point, effectively delivering returns of up to 33% value. Monthly caps are applied, such as 15,000 points for Infinia.

Similarly, American Express offers 5X to 20X points via its Rewards Multiplier and Rewards Xcelerator across travel and luxury shopping. Points earned can be transferred to airline or hotel partners for maximum value.

Portals Designed for Profitability and Engagement

Bank loyalty portals are structured to favour high-margin categories like travel and luxury shopping. Though prices may appear slightly higher than direct bookings, users appreciate the enhanced rewards. This trade-off often strengthens loyalty and increases wallet share among high-net-worth individuals and mass affluent customers.

Axis Bank's TravelEDGE and GrabDeals platforms, as well as ICICI Bank’s iShop and IDFC First’s in-app portal, offer similar incentives with 5X to 50X rewards. For example, IDFC FIRST’s Mayura credit card offers 50X points, translating to rewards worth up to 18% on hotel spends.

Read More: IndiGo and IDFC FIRST Bank Unveil Co-branded Credit Card!

New Entrants Adopting Aggressive Tactics

Newer banks like HSBC are innovating with offerings like Travel With Points via the HSBC India app, giving 6X to 12X points on travel. HSBC Premier cardholders can earn up to 18 points per ₹100 spent, with redemptions valued at ₹1 per point, ensuring meaningful rewards using native credit card microsites.

Conclusion

Banks offering up to 50X reward points through their loyalty portals aim to ensure repeat usage, higher engagement and profitability from premium customers. This reward-driven model is proving successful in India, adapting global best practices in banking loyalty programmes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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