Reward Based Payment App Market Trends, Industry & Size 2032
Reward Based Payment App Market Trends, Industry & Size 2032
Segments - Reward-based Payment App Market by Reward Type (Cashback, Discounts, Gift Coupons, Coins, and Loyalty Points) and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
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Report Description
Reward Based Payment App Market Outlook 2032
The global reward-based payment app market size was USD 7.26 Billion in 2023 and is expected to reach around USD 13.42 Billion in 2032, with a CAGR of 7.2% during the forecast period, 2024–2032. The growth of the market is attributed to the extensive use of mobile banking, the wide availability of different payment gateways, and the rising implementation of loyalty points offered by merchants mainly associated with online payment methods.
A reward-based payment app is a mobile payment platform that offers a range of rewards to users or customers for buying products either online or in-store. The app is primarily designed to offer customers a key platform to use their idle rewards, especially coins and loyalty points for further purchases. It is a platform through which a customer can accumulate all of their different forms of rewards received from different sources or brands and use them as a payment option for online shopping or buying goods from offline merchants.
With the rising acceptance of rewards payment platforms across businesses, customers now can exchange these coins or loyalty points for the services provided in several sectors including restaurants, hotels, and travel. Moreover, different types of reward systems or multiple loyalty programs are increasingly implemented by banks, airlines, and commercial brands for every payment transaction made by customers using their credit cards or debit cards.
Every time a consumer makes a payment using reward offers through the app, service providers earn some percentage out of the total payment as a service charge. For brands, the app aids in building a large consumer base who prefer to return and buy products from the same brand in their next purchase.
The COVID-19 pandemic has accelerated the expansion of the market due to a massive surge in the use of digital payment modes, impacted by consumers’ preference for online shopping and the emergence of numerous e-commerce platforms. Customers received a range of financial benefits in the form of different rewards such as cashback or heavy discount offers for buying products from online retailers.
Reward Based Payment App Market Trends, Drivers, Restraints, and Opportunities
- High penetration of the Internet and the rising number of smartphone users globally are key factors driving the market.
- The increasing emergence of numerous e-commerce platforms and the rising use of online mobile payment are expected to fuel the market during the forecast period.
- The rapid expansion of the fintech industry and the wide integration of advanced technologies for payment methods present another key driver of the market.
- Lack of awareness regarding the app especially in developing countries acts as a major challenge that can hamper the market in the coming years.
- Rising introduction and development of new user-friendly reward-based payment apps for an easy customer experience is projected to offer lucrative growth opportunities for the market in the near future.
Scope of Reward-based Payment App Market Report
The report on the global reward-based payment app market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes |
Details |
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Report Title |
Reward-based Payment App Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
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Base Year |
2022 |
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Historic Data |
2020–2021 |
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Forecast Period |
2023–2031 |
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Segmentation |
Reward Type (Cashback, Discounts, Gift Coupons, Coins, and Loyalty Points) |
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Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
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Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast |
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Key Players Covered in the Report |
Cashrewards, Checkout 51, Coin Out, Inc. (CoinOut), Dosh Holdings LLC., Dreamplug Technologies Pvt Ltd. (CRED), FIVESTARS LOYALTY, INC, Ibotta, Inc., Prodege, LLC, Rakuten Group, Inc.(Rakuten Rewards), Shopkick, Inc., Twid. |
Reward-based Payment App Market Segment Insights
Wide implementation of loyalty points offers by several merchants drives the loyalty points segment
Based on reward type, the global reward-based payment app market is divided into cashback, discounts, gift coupons, coins, and loyalty points. The loyalty points segment accounted for a key market share in 2021 and is expected to expand at a rapid growth rate during the forecast period due to the wide implementation of loyalty points offers by several merchants including brick-and-mortar stores. Businesses mainly use loyalty point programs, as a key marketing tool to retain existing customers and attract new customers, which urges them to return to the same store or platform for their next purchase.
On the other hand, the gift coupons segment is anticipated to register a steady CAGR during the forecast period owing to rising consumers’ preference for gift coupons as they are easily exchangeable and can be used by anyone than the person who receives these coupons. Furthermore, sending gift coupons to friends, family, and relatives on several festival occasions presents a key driver of the segment.
North America to dominate the market
In terms of regions, the global reward-based payment app market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a dominant market share in 2021 and is expected to dominate the market during the projected period owing to the wide acceptance of reward-based payment services across online platforms and offline stores. Moreover, the early adoption of advanced digital payment systems and the presence of key global players in the regions are other key factors boosting the regional market.
On the other hand, the market in the Asia Pacific has several potentials for rapid growth in the coming years due to the increasing use of mobile banking and other payment methods, impacted by the presence of a large pool of smartphone users in the region. However, a lack of awareness regarding using their idle rewards poses a major threat to the regional market expansion. For instance, Amit Koshal, a co-founder of an India-based reward-based payment service provider, Twid claimed that a large pool of loyalty points, which was worth nearly Rs. 16,000 crores were lying idle and consumers had no idea where and how to use their gift bonus and rewards.
Segments
The global reward-based payment app market has been segmented on the basis of
Reward Type
- Cashback
- Discounts
- Gift Coupons
- Coins
- Loyalty Points
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Cashrewards
- Checkout 51
- Coin Out, Inc. (CoinOut)
- Dosh Holdings LLC.
- Dreamplug Technologies Pvt Ltd. (CRED)
- FIVESTARS LOYALTY, INC
- Ibotta, Inc.
- Prodege, LLC
- Rakuten Group, Inc.(Rakuten Rewards)
- Shopkick, Inc.
- Twid
Competitive Landscape
Key players competing in the global reward-based payment app market are Cashrewards, Checkout 51, Coin Out, Inc. (CoinOut), Dosh Holdings LLC., Dreamplug Technologies Pvt Ltd. (CRED), FIVESTARS LOYALTY, INC, Ibotta, Inc., Prodege LLC, Rakuten Group, Inc.(Rakuten Rewards), Shopkick, Inc., Twid. Some of these players have adopted a series of business development strategies including merger and acquisition, entering into partnerships and collaboration, and rapidly developing innovative mobile payment apps to expand their consumer base and enhance their market share.
Many of these key players are in talks with giant fintech organizations such as Google Pay, Paytm, and PhonePe to expand their services and the better geographical reach of their business operations.
- On April 17, 2023, a credit card payment application, CRED announced the UPI-based peer-to-peer payments to create an elevated UPI experience for members. CRED UPI P2P can let users have access to a trusted and rewarding payment experience when they ‘pay anyone'.
- In September 2019, Twid raised USD 1.4 million in its funding round majorly led by a family-owned business of tech entrepreneur, SCV LLC. The former company secured funding from investors such as Whiteboard Capital, YourNest Fund, and Capillary Technologies.
Frequently Asked Questions
The loyalty points segment accounted for a key market share in 2021 and is expected to expand at a rapid growth rate during the forecast period.
The key drivers of the market include extensive use of mobile banking, wide availability of different payment gateways, and rising implementation of loyalty points offered by merchants mainly associated with online payment methods.
The global reward-based payment app market size was USD 3.53 Bn and is expected to reach around USD 6.26 Bn with a CAGR of 7.2% during the forecast period, 2023–2031.
North America is likely to dominate the market during the forecast period.
The key players of the market are Cashrewards, Checkout 51, Coin Out, Inc. (CoinOut), Dosh Holdings LLC., Dreamplug Technologies Pvt Ltd. (CRED), FIVESTARS LOYALTY, INC, Ibotta, Inc., Prodege, LLC, Rakuten Group, Inc.(Rakuten Rewards), Shopkick, Inc., Twid.
Table Of Content
Chapter 1 Executive SummaryChapter 2 Assumptions and Acronyms Used
Chapter 3 Research Methodology
Chapter 4 Reward Based Payment App Market Overview
4.1 Introduction
4.1.1 Market Taxonomy
4.1.2 Market Definition
4.1.3 Macro-Economic Factors Impacting the Market Growth
4.2 Reward Based Payment App Market Dynamics
4.2.1 Market Drivers
4.2.2 Market Restraints
4.2.3 Market Opportunity
4.3 Reward Based Payment App Market - Value Chain Analysis
4.4 Key Forces Shaping the Reward Based Payment App Market
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of Substitution
4.4.4 Threat of New Entrants
4.4.5 Competitive Rivalry
4.5 Global Reward Based Payment App Market Size & Forecast, 2017-2032
4.5.1 Reward Based Payment App Market Size and Y-o-Y Growth
4.5.2 Reward Based Payment App Market Absolute $ Opportunity
Chapter 5 Global Reward Based Payment App Market Analysis and Forecast By Reward Type
5.1 Introduction
5.1.1 Key Market Trends & Growth Opportunities By Reward Type
5.1.2 Basis Point Share (BPS) Analysis By Reward Type
5.1.3 Absolute $ Opportunity Assessment By Reward Type
5.2 Reward Based Payment App Market Size Forecast By Reward Type
5.2.1 Cashback
5.2.2 Discounts
5.2.3 Gift Coupons
5.2.4 Coins
5.2.5 Loyalty Points
5.3 Market Attractiveness Analysis By Reward Type
Chapter 6 Global Reward Based Payment App Market Analysis and Forecast by Region
6.1 Introduction
6.1.1 Key Market Trends & Growth Opportunities by Region
6.1.2 Basis Point Share (BPS) Analysis by Region
6.1.3 Absolute $ Opportunity Assessment by Region
6.2 Reward Based Payment App Market Size Forecast by Region
6.2.1 North America
6.2.2 Europe
6.2.3 Asia Pacific
6.2.4 Latin America
6.2.5 Middle East & Africa (MEA)
6.3 Market Attractiveness Analysis by Region
Chapter 7 Coronavirus Disease (COVID-19) Impact
7.1 Introduction
7.2 Current & Future Impact Analysis
7.3 Economic Impact Analysis
7.4 Government Policies
7.5 Investment Scenario
Chapter 8 North America Reward Based Payment App Analysis and Forecast
8.1 Introduction
8.2 North America Reward Based Payment App Market Size Forecast by Country
8.2.1 U.S.
8.2.2 Canada
8.3 Basis Point Share (BPS) Analysis by Country
8.4 Absolute $ Opportunity Assessment by Country
8.5 Market Attractiveness Analysis by Country
8.6 North America Reward Based Payment App Market Size Forecast By Reward Type
8.6.1 Cashback
8.6.2 Discounts
8.6.3 Gift Coupons
8.6.4 Coins
8.6.5 Loyalty Points
8.7 Basis Point Share (BPS) Analysis By Reward Type
8.8 Absolute $ Opportunity Assessment By Reward Type
8.9 Market Attractiveness Analysis By Reward Type
Chapter 9 Europe Reward Based Payment App Analysis and Forecast
9.1 Introduction
9.2 Europe Reward Based Payment App Market Size Forecast by Country
9.2.1 Germany
9.2.2 France
9.2.3 Italy
9.2.4 U.K.
9.2.5 Spain
9.2.6 Russia
9.2.7 Rest of Europe
9.3 Basis Point Share (BPS) Analysis by Country
9.4 Absolute $ Opportunity Assessment by Country
9.5 Market Attractiveness Analysis by Country
9.6 Europe Reward Based Payment App Market Size Forecast By Reward Type
9.6.1 Cashback
9.6.2 Discounts
9.6.3 Gift Coupons
9.6.4 Coins
9.6.5 Loyalty Points
9.7 Basis Point Share (BPS) Analysis By Reward Type
9.8 Absolute $ Opportunity Assessment By Reward Type
9.9 Market Attractiveness Analysis By Reward Type
Chapter 10 Asia Pacific Reward Based Payment App Analysis and Forecast
10.1 Introduction
10.2 Asia Pacific Reward Based Payment App Market Size Forecast by Country
10.2.1 China
10.2.2 Japan
10.2.3 South Korea
10.2.4 India
10.2.5 Australia
10.2.6 South East Asia (SEA)
10.2.7 Rest of Asia Pacific (APAC)
10.3 Basis Point Share (BPS) Analysis by Country
10.4 Absolute $ Opportunity Assessment by Country
10.5 Market Attractiveness Analysis by Country
10.6 Asia Pacific Reward Based Payment App Market Size Forecast By Reward Type
10.6.1 Cashback
10.6.2 Discounts
10.6.3 Gift Coupons
10.6.4 Coins
10.6.5 Loyalty Points
10.7 Basis Point Share (BPS) Analysis By Reward Type
10.8 Absolute $ Opportunity Assessment By Reward Type
10.9 Market Attractiveness Analysis By Reward Type
Chapter 11 Latin America Reward Based Payment App Analysis and Forecast
11.1 Introduction
11.2 Latin America Reward Based Payment App Market Size Forecast by Country
11.2.1 Brazil
11.2.2 Mexico
11.2.3 Rest of Latin America (LATAM)
11.3 Basis Point Share (BPS) Analysis by Country
11.4 Absolute $ Opportunity Assessment by Country
11.5 Market Attractiveness Analysis by Country
11.6 Latin America Reward Based Payment App Market Size Forecast By Reward Type
11.6.1 Cashback
11.6.2 Discounts
11.6.3 Gift Coupons
11.6.4 Coins
11.6.5 Loyalty Points
11.7 Basis Point Share (BPS) Analysis By Reward Type
11.8 Absolute $ Opportunity Assessment By Reward Type
11.9 Market Attractiveness Analysis By Reward Type
Chapter 12 Middle East & Africa (MEA) Reward Based Payment App Analysis and Forecast
12.1 Introduction
12.2 Middle East & Africa (MEA) Reward Based Payment App Market Size Forecast by Country
12.2.1 Saudi Arabia
12.2.2 South Africa
12.2.3 UAE
12.2.4 Rest of Middle East & Africa (MEA)
12.3 Basis Point Share (BPS) Analysis by Country
12.4 Absolute $ Opportunity Assessment by Country
12.5 Market Attractiveness Analysis by Country
12.6 Middle East & Africa (MEA) Reward Based Payment App Market Size Forecast By Reward Type
12.6.1 Cashback
12.6.2 Discounts
12.6.3 Gift Coupons
12.6.4 Coins
12.6.5 Loyalty Points
12.7 Basis Point Share (BPS) Analysis By Reward Type
12.8 Absolute $ Opportunity Assessment By Reward Type
12.9 Market Attractiveness Analysis By Reward Type
Chapter 13 Competition Landscape
13.1 Reward Based Payment App Market: Competitive Dashboard
13.2 Global Reward Based Payment App Market: Market Share Analysis, 2023
13.3 Company Profiles (Details – Overview, Financials, Developments, Strategy)
13.3.1 Cashrewards
13.3.2 Checkout 51
13.3.3 Coin Out, Inc. (CoinOut)
13.3.4 Dosh Holdings LLC.
13.3.5 Dreamplug Technologies Pvt Ltd. (CRED)
13.3.6 FIVESTARS LOYALTY, INC
13.3.7 Ibotta, Inc.
13.3.8 Prodege, LLC
13.3.9 Rakuten Group, Inc.(Rakuten Rewards)
13.3.10 Shopkick, Inc.
13.3.11 Twid
Methodology
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