Reward-based Payment App Market by Reward Types (Cashback, Discounts, Gift Coupons, Coins, and Loyalty Points) and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
The global reward-based payment app market size is expected to register a high CAGR during the forecast period, 2023–2031. The growth of the market is attributed to the 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.
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 had 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 form of different rewards such as cashback or heavy discount offers for buying products from online retailers.
Market Trends, Drivers, Restraints, and Opportunities
- High penetration of the Internet and rising number of smartphone users globally are key factors driving the market.
- 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.
- Rapid expansion of the fintech industry and 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.
|
Attributes |
Details |
|
Report Title |
Reward-based Payment App Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
|
Base Year |
2022 |
|
Historic Data |
2020–2021 |
|
Forecast Period |
2023–2031 |
|
Segmentation |
Reward Types (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 |
|
Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast |
|
Key Players Covered in the Report |
Shopkick; Smile Inc.; Twid; Cred; Matellio.co.uk.; Say2B; Spendgo, Inc.; PassKit, Inc., and Fivestars |
Reward-based Payment App Market Segment Insights
Wide implementation of loyalty points offers by several merchants drives the loyalty points segment
Based on reward types, 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 Asia Pacific has several potential 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 the use of 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 Types
- Cashback
- Discounts
- Gift Coupons
- Coins
- Loyalty Points
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Shopkick
- Smile Inc.
- Twid
- Cred
- Matellio.co.uk.
- Say2B
- Spendgo, Inc.
- PassKit, Inc.
- Fivestars
Competitive Landscape
Key players competing in the global reward-based payment app market are Shopkick; Smile Inc.; Twid; Cred; Matellio.co.uk.; Say2B; Spendgo, Inc.; PassKit, Inc., and Fivestars. 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.
- 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.
1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Reward-based Payment App Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Reward-based Payment App Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Reward-based Payment App Market - Supply Chain
4.5. Global Reward-based Payment App Market Forecast
4.5.1. Reward-based Payment App Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Reward-based Payment App Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Reward-based Payment App Market Absolute $ Opportunity
5. Global Reward-based Payment App Market Analysis and Forecast by Region
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Region
5.2.2. Y-o-Y Growth Projections by Region
5.3. Reward-based Payment App Market Size and Volume Forecast by Region
5.3.1. North America
5.3.2. Latin America
5.3.3. Europe
5.3.4. Asia Pacific
5.3.5. Middle East and Africa (MEA)
5.4. Absolute $ Opportunity Assessment by Region
5.5. Market Attractiveness/Growth Potential Analysis by Region
5.6. Global Reward-based Payment App Demand Share Forecast, 2019-2026
6. North America Reward-based Payment App Market Analysis and Forecast
6.1. Introduction
6.1.1. Basis Point Share (BPS) Analysis by Country
6.1.2. Y-o-Y Growth Projections by Country
6.2. North America Reward-based Payment App Market Size and Volume Forecast by Country
6.2.1. U.S.
6.2.2. Canada
6.3. Absolute $ Opportunity Assessment by Country
6.4. Market Attractiveness/Growth Potential Analysis
6.4.1. By Country
6.4.2. By Product Type
6.4.3. By Application
6.5. North America Reward-based Payment App Demand Share Forecast, 2019-2026
7. Latin America Reward-based Payment App Market Analysis and Forecast
7.1. Introduction
7.1.1. Basis Point Share (BPS) Analysis by Country
7.1.2. Y-o-Y Growth Projections by Country
7.1.3. Latin America Average Pricing Analysis
7.2. Latin America Reward-based Payment App Market Size and Volume Forecast by Country
7.2.1. Brazil
7.2.2. Mexico
7.2.3. Rest of Latin America
7.3. Absolute $ Opportunity Assessment by Country
7.4. Market Attractiveness/Growth Potential Analysis
7.4.1. By Country
7.4.2. By Product Type
7.4.3. By Application
7.5. Latin America Reward-based Payment App Demand Share Forecast, 2019-2026
8. Europe Reward-based Payment App Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.1.3. Europe Average Pricing Analysis
8.2. Europe Reward-based Payment App Market Size and Volume Forecast by Country
8.2.1. Germany
8.2.2. France
8.2.3. Italy
8.2.4. U.K.
8.2.5. Spain
8.2.6. Russia
8.2.7. Rest of Europe
8.3. Absolute $ Opportunity Assessment by Country
8.4. Market Attractiveness/Growth Potential Analysis
8.4.1. By Country
8.4.2. By Product Type
8.4.3. By Application
8.5. Europe Reward-based Payment App Demand Share Forecast, 2019-2026
9. Asia Pacific Reward-based Payment App Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Asia Pacific Average Pricing Analysis
9.2. Asia Pacific Reward-based Payment App Market Size and Volume Forecast by Country
9.2.1. China
9.2.2. Japan
9.2.3. South Korea
9.2.4. India
9.2.5. Australia
9.2.6. Rest of Asia Pacific (APAC)
9.3. Absolute $ Opportunity Assessment by Country
9.4. Market Attractiveness/Growth Potential Analysis
9.4.1. By Country
9.4.2. By Product Type
9.4.3. By Application
9.5. Asia Pacific Reward-based Payment App Demand Share Forecast, 2019-2026
10. Middle East & Africa Reward-based Payment App Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Middle East & Africa Average Pricing Analysis
10.2. Middle East & Africa Reward-based Payment App Market Size and Volume Forecast by Country
10.2.1. Saudi Arabia
10.2.2. South Africa
10.2.3. UAE
10.2.4. Rest of Middle East & Africa (MEA)
10.3. Absolute $ Opportunity Assessment by Country
10.4. Market Attractiveness/Growth Potential Analysis
10.4.1. By Country
10.4.2. By Product Type
10.4.3. By Application
10.5. Middle East & Africa Reward-based Payment App Demand Share Forecast, 2019-2026
11. Competition Landscape
11.1. Global Reward-based Payment App Market: Market Share Analysis
11.2. Reward-based Payment App Distributors and Customers
11.3. Reward-based Payment App Market: Competitive Dashboard
11.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
11.4.1. Shopkick
11.4.2. Smile Inc.
11.4.3. Twid
11.4.4. Cred
11.4.5. Matellio.co.uk.
11.4.6. Say2B
11.4.7. Spendgo, Inc.
11.4.8. PassKit, Inc.
2. Assumptions and Acronyms Used
3. Research Methodology
4. Reward-based Payment App Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Reward-based Payment App Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Reward-based Payment App Market - Supply Chain
4.5. Global Reward-based Payment App Market Forecast
4.5.1. Reward-based Payment App Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Reward-based Payment App Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Reward-based Payment App Market Absolute $ Opportunity
5. Global Reward-based Payment App Market Analysis and Forecast by Region
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Region
5.2.2. Y-o-Y Growth Projections by Region
5.3. Reward-based Payment App Market Size and Volume Forecast by Region
5.3.1. North America
5.3.2. Latin America
5.3.3. Europe
5.3.4. Asia Pacific
5.3.5. Middle East and Africa (MEA)
5.4. Absolute $ Opportunity Assessment by Region
5.5. Market Attractiveness/Growth Potential Analysis by Region
5.6. Global Reward-based Payment App Demand Share Forecast, 2019-2026
6. North America Reward-based Payment App Market Analysis and Forecast
6.1. Introduction
6.1.1. Basis Point Share (BPS) Analysis by Country
6.1.2. Y-o-Y Growth Projections by Country
6.2. North America Reward-based Payment App Market Size and Volume Forecast by Country
6.2.1. U.S.
6.2.2. Canada
6.3. Absolute $ Opportunity Assessment by Country
6.4. Market Attractiveness/Growth Potential Analysis
6.4.1. By Country
6.4.2. By Product Type
6.4.3. By Application
6.5. North America Reward-based Payment App Demand Share Forecast, 2019-2026
7. Latin America Reward-based Payment App Market Analysis and Forecast
7.1. Introduction
7.1.1. Basis Point Share (BPS) Analysis by Country
7.1.2. Y-o-Y Growth Projections by Country
7.1.3. Latin America Average Pricing Analysis
7.2. Latin America Reward-based Payment App Market Size and Volume Forecast by Country
7.2.1. Brazil
7.2.2. Mexico
7.2.3. Rest of Latin America
7.3. Absolute $ Opportunity Assessment by Country
7.4. Market Attractiveness/Growth Potential Analysis
7.4.1. By Country
7.4.2. By Product Type
7.4.3. By Application
7.5. Latin America Reward-based Payment App Demand Share Forecast, 2019-2026
8. Europe Reward-based Payment App Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.1.3. Europe Average Pricing Analysis
8.2. Europe Reward-based Payment App Market Size and Volume Forecast by Country
8.2.1. Germany
8.2.2. France
8.2.3. Italy
8.2.4. U.K.
8.2.5. Spain
8.2.6. Russia
8.2.7. Rest of Europe
8.3. Absolute $ Opportunity Assessment by Country
8.4. Market Attractiveness/Growth Potential Analysis
8.4.1. By Country
8.4.2. By Product Type
8.4.3. By Application
8.5. Europe Reward-based Payment App Demand Share Forecast, 2019-2026
9. Asia Pacific Reward-based Payment App Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Asia Pacific Average Pricing Analysis
9.2. Asia Pacific Reward-based Payment App Market Size and Volume Forecast by Country
9.2.1. China
9.2.2. Japan
9.2.3. South Korea
9.2.4. India
9.2.5. Australia
9.2.6. Rest of Asia Pacific (APAC)
9.3. Absolute $ Opportunity Assessment by Country
9.4. Market Attractiveness/Growth Potential Analysis
9.4.1. By Country
9.4.2. By Product Type
9.4.3. By Application
9.5. Asia Pacific Reward-based Payment App Demand Share Forecast, 2019-2026
10. Middle East & Africa Reward-based Payment App Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Middle East & Africa Average Pricing Analysis
10.2. Middle East & Africa Reward-based Payment App Market Size and Volume Forecast by Country
10.2.1. Saudi Arabia
10.2.2. South Africa
10.2.3. UAE
10.2.4. Rest of Middle East & Africa (MEA)
10.3. Absolute $ Opportunity Assessment by Country
10.4. Market Attractiveness/Growth Potential Analysis
10.4.1. By Country
10.4.2. By Product Type
10.4.3. By Application
10.5. Middle East & Africa Reward-based Payment App Demand Share Forecast, 2019-2026
11. Competition Landscape
11.1. Global Reward-based Payment App Market: Market Share Analysis
11.2. Reward-based Payment App Distributors and Customers
11.3. Reward-based Payment App Market: Competitive Dashboard
11.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
11.4.1. Shopkick
11.4.2. Smile Inc.
11.4.3. Twid
11.4.4. Cred
11.4.5. Matellio.co.uk.
11.4.6. Say2B
11.4.7. Spendgo, Inc.
11.4.8. PassKit, Inc.
The global reward-based payment app market has been segmented on the basis of
Reward Types
- Cashback
- Discounts
- Gift Coupons
- Coins
- Loyalty Points
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Shopkick
- Smile Inc.
- Twid
- Cred
- Matellio.co.uk.
- Say2B
- Spendgo, Inc.
- PassKit, Inc.
- Fivestars
Key players competing in the global reward-based payment app market are Shopkick; Smile Inc.; Twid; Cred; Matellio.co.uk.; Say2B; Spendgo, Inc.; PassKit, Inc., and Fivestars. 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.
- 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.
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FAQ Section
Some frequently asked quetions about this report!
The key players of the market are Shopkick; Smile Inc.; Twid; Cred; Matellio.co.uk.; Say2B; Spendgo, Inc.; PassKit, Inc., and Fivestars.
North America is likely to dominate the market during the forecast period.
The global reward-based payment app market size is expected to register a high CAGR during the forecast period, 2022–2030.
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 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.
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