The India loyalty program market is set to witness significant growth between 2025 and 2035, driven by increasing digitalization, rising consumer expectations, and the adoption of data-driven personalized rewards. The market is expected to expand from USD 4.3 billion in 2025 to USD 17.1 billion by 2035, registering a CAGR of 16.1% over the forecast period.
Crucial growth motorists include the growing penetration of mobile-grounded fidelity programs, AI- driven client perceptivity, and the adding use of FinTech results to enhance client engagement.
Businesses across retail, e-commerce, banking, and hospitality sectors are investing in innovative price programs to ameliorate client retention and brand fidelity. The rise of digital payments and e-wallets will further accelerate the relinquishment of flawless and individualized fidelity results.
Market Metrics
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 4.3 billion |
| Industry Value (2035F) | USD 17.1 billion |
| CAGR (2025 to 2035) | 16.1% |
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Metropolitan metropolises will be at the van of the fidelity program request, driven by high digital relinquishment rates and adding consumer spending. Leading retailers,e-commerce platforms, and fiscal institutions will introduce AI- powered fidelity results with hyperactive- individualized prices.
The integration of fidelity programs with digital holdalls and UPI- grounded payments will further boost engagement. also, collaborations between brands and influencers will increase the appeal of fidelity- driven elevations.
The expansion of organized retail ande-commerce penetration in league 2 and league 3 metropolises will drive fidelity program relinquishment in arising requests. Brands will concentrate on localized prices, offering cashback, abatements, and fidelity points grounded on indigenous shopping preferences.
The growing use of fintech apps and QR- law- grounded payment results will make fidelity programs more accessible to consumers in these metropolises. The adding smartphone penetration and internet operation will further accelerate the digital metamorphosis of fidelity enterprise.
Rural requests determination witness gradational relinquishment of fidelity programs, primarily driven by the expansion of digital fiscal services and government- backed enterprise to promote cashless deals. Fmcg and agritech companies will introduce prices- grounded models to enhance client engagement.
Mobile- grounded fidelity programs using sms and ussd technology will feed to druggies with limited access to smartphones. Retail chains and kirana stores will integrate introductory fidelity schemes to encourage reprise purchases.
The integration of AI, blockchain, and machine literacy in fidelity programs will unleash new growth avenues. AI- driven client perceptivity will help businesses design largely individualized prices, enhancing stoner engagement. Blockchain technology will ameliorate translucency and security in point accumulation and redemption, making fidelity programs more believable.
The rise of coalition fidelity programs presents another occasion. Multiple brands joining forces to offer cross-industry prices will boost participation rates. For illustration, banks, airlines, and retail chains uniting on participated fidelity programs can produce added value for consumers.
E-commerce and D2C (direct-to-consumer) brands will further work fidelity enterprise to drive reprise purchases. Subscription-grounded price programs, where guests admit exclusive benefits for a fixed figure, will gain traction in orders like fashion, beauty, and online grocery.
The integration of AI, block chain, and machine learning in loyalty programs will unlock new growth avenues. AI-driven customer insights will help businesses design highly personalized rewards, enhancing user engagement.
Block chain technology will improve transparency and security in point accumulation and redemption, making loyalty programs more credible. The rise of coalition loyalty programs presents another opportunity. Multiple brands joining forces to offer cross-industry rewards will boost participation rates. For example, banks, airlines, and retail chains collaborating on shared loyalty programs can create added value for consumers.
E-commerce and D2C (direct-to-consumer) brands will further leverage loyalty initiatives to drive repeat purchases. Subscription-based rewards programs, where customers receive exclusive benefits for a fixed fee, will gain traction in categories like fashion, beauty, and online grocery.
| Region | North India |
|---|---|
| Population (millions) | 601.0 |
| Estimated Per Capita Spending (USD) | 6.20 |
| Region | West India |
|---|---|
| Population (millions) | 427.3 |
| Estimated Per Capita Spending (USD) | 7.10 |
| Region | South India |
|---|---|
| Population (millions) | 404.5 |
| Estimated Per Capita Spending (USD) | 8.20 |
| Region | East India |
|---|---|
| Population (millions) | 319.1 |
| Estimated Per Capita Spending (USD) | 5.40 |
| Region | Central India |
|---|---|
| Population (millions) | 189.0 |
| Estimated Per Capita Spending (USD) | 4.80 |
North India leads with a USD 3.73 billion loyalty program market as metro cities like Delhi and Chandigarh witness high engagement. Retail, banking, and travel sectors invest in AI-driven rewards programs to boost customer retention.
West India’s USD 3.03 billion market thrives on consumer engagement in Mumbai, Pune, and Ahmedabad. E-commerce and hospitality brands integrate personalized loyalty perks, accelerating market expansion.
South India’s USD 3.32 billion market benefits from tech-driven loyalty programs in Bengaluru, Hyderabad, and Chennai. Digital wallets and airline reward systems see strong adoption among urban consumers.
East India’s USD 1.72 billion market grows steadily as brands in Kolkata and Bhubaneswar introduce tier-based loyalty programs. Retail and quick-service restaurants (QSRs) capitalize on rising digital adoption.
Central India’s USD 907 million market remains smaller but gains traction with cashback programs and mobile-based rewards in cities like Bhopal and Indore. Local retail and fuel loyalty programs drive spending.
India loyalty program market is growing as companies adopt customer retention strategies, digital rewards, and tailor-made incentive to enhance commitment. Surveying 250 of the respondents living in metro as well as non-metro Indian cities finds essential drivers of customer engagement with programs of loyalty.
Brand value and reward value are ongoing incentives, with 68% of urban consumers and 60% of rural consumers joining loyalty programs to earn discounts and cash-back rewards. Mass brands in retailing, food service, and e-commerce product categories achieve 72% participation due to frequent purchases and simplicity of redemption. Premium brands achieve 55% participation in loyalty programs.
Digital-first loyalty schemes pick up momentum, with 65% of consumers opting for app-based or online reward sites over card-based programs. Online retail and fintech businesses lead the charge in this direction, with 72% of Gen Z and millennials surveyed opting for UPI payment-linked, e-wallet-based, and online shopping platform-based loyalty programs. However, 50% of elderly consumers remain attached to point-based offline physical retail loyalty cards.
Tiered rewards and custom promotions drive involvement since 58% of the survey subjects would participate more frequently in schemes providing customized offers based on previous purchases. Brands of hospitality, airline, and luxury consumer items are seeing heightened adoption of tiered reward programs since 42% of high-income bracket respondents place a higher value on VIP membership, privileged services, and exclusive privileges compared to straight-cut-price offers.
Multi-brand loyalty partnerships are on the rise, with 53% of shoppers wanting programs that would enable cross-brand redemptions. Bank, online retailing giant, and travel company alignments are on the rise, with 62% of the customers wanting loyalty point’s redemption across categories like shopping, dining, and travel.
With digital accessibility, customization, and multi-brand alliances driving engagement, India's loyalty program industries are poised for expansion. To maximize customer engagement, companies can provide Omni channel loyalty platforms, AI-enabled rewards customization, and touchless digital payments-based rewards for optimal customer retention.
| Market Shift | 2020 to 2024 |
|---|---|
| Technology & Innovation | Brands introduced AI-driven personalized rewards, tier-based programs, and gamification to enhance engagement. Digital wallets and UPI-integrated loyalty points gained popularity. |
| Sustainability & Circular Economy | Companies adopted eco-friendly reward options, such as carbon offset credits and green loyalty programs. Digital-first reward structures reduced reliance on physical cards. |
| Connectivity & Smart Features | Mobile-first and omnichannel loyalty programs allowed seamless point accumulation across e-commerce, in-store, and app-based transactions. Real-time rewards redemption enhanced customer satisfaction. |
| Market Expansion & Consumer Adoption | Rising smartphone penetration and fintech adoption drove loyalty program enrollments. Tiered and subscription-based reward programs gained traction. |
| Regulatory & Compliance Standards | Data protection regulations influenced how brands collected and stored customer loyalty data. Transparency in point expiry and redemption policies became a key differentiator. |
| Customization & Personalization | Brands launched AI-powered rewards tailored to spending habits and preferences. Personalized, experience-based loyalty offerings gained momentum. |
| Influencer & Social Media Marketing | Digital influencers and brand ambassadors promoted exclusive loyalty benefits. Referral-based rewards and user-generated content increased engagement. |
| Consumer Trends & Behaviour | Consumers prioritized instant, flexible, and easy-to-redeem rewards. Demand for cashback and experiential loyalty benefits increased. |
| Market Shift | 2025 to 2035 |
|---|---|
| Technology & Innovation | AI-powered loyalty engines predict consumer behavior for hyper-personalized rewards. Blockchain-based decentralized loyalty ecosystems eliminate fraud and improve transparency. |
| Sustainability & Circular Economy | Zero-waste loyalty programs with sustainability-driven incentives become mainstream. AI optimizes eco-conscious reward redemption, promoting responsible consumption. |
| Connectivity & Smart Features | AI-driven, automated loyalty systems dynamically adjust rewards based on real-time consumer actions. NFT and metaverse-based loyalty programs create exclusive digital experiences. |
| Market Expansion & Consumer Adoption | AI-driven hyper-personalization enhances engagement in Tier-2 and Tier-3 cities. Decentralized loyalty programs empower brands to offer interoperable rewards across industries. |
| Regulatory & Compliance Standards | Stricter data privacy laws require blockchain-backed security for loyalty programs. AI-driven fraud detection eliminates points misuse and unauthorized access. |
| Customization & Personalization | AI-driven customer profiling ensures real-time personalized rewards. On-demand loyalty experiences allow customers to choose instant, tailored benefits. |
| Influencer & Social Media Marketing | Virtual influencers and metaverse-based reward experiences reshape brand loyalty. AR-powered gamified loyalty systems boost user participation and retention. |
| Consumer Trends & Behaviour | Biohacking-inspired rewards integrate health and wellness benefits. Consumers embrace AI-powered, real-time loyalty programs offering personalized, dynamic incentives. |
The North India fidelity program request is witnessing strong growth, driven by adding digital payments, high retail penetration, and rising consumer mindfulness of price- grounded engagement. Crucial regions include Delhi NCR, Punjab, and Uttar Pradesh. Major players include Payback India, Amazon Prime, and Flipkart Super Coins.
Market Growth Factors
| Region | CAGR (2025 to 2035) |
|---|---|
| North India | 8.4% |
South India’s fidelity program request is expanding due to the rapid-fire relinquishment of digital deals, growing presence of e-commerce titans, and a strong IT pool. Crucial regions include Bangalore, Chennai, and Hyderabad. Leading brands include Tata Neu, Zomato Pro, and HDFC Smartbuy.
Market Growth Factors
| Region | CAGR (2025 to 2035) |
|---|---|
| South India | 8.7% |
West India’s fidelity program request is growing, fuelled by high urbanization rates, strong retail structure, and a rising preference for ultra-expensive brand fidelity programs. Crucial regions include Mumbai, Pune, and Gujarat. Major players include ICICI Bank prices, Reliance One, and CRED.
Market Growth Factors
| Region | CAGR (2025 to 2035) |
|---|---|
| West India | 8.5% |
The East India fidelity program request is expanding steadily, driven by adding mobile payment relinquishment, rising middle- class spending, and the growth of organized retail. Crucial regions include Kolkata, Bhubaneswar, and Assam. Prominent brands include SBI Rewardz, BigBasket prices, and Flipkart SuperCoins.
Market Growth Factors
| Region | CAGR (2025 to 2035) |
|---|---|
| East India | 8.2% |
Increased retailers and e-commerce websites choose loyalty programs to drive repeat buys. Point-based rewards, cashback provisions, and time-bound discounts induce repeat buying, increasing consumer involvement.
Banks and fintech firms employ loyalty programs to reward credit card usage, electronic payment transactions, and long-term customer status of a bank. Cashback rewards, airline miles, and VIP memberships increase bank customer loyalty.
Hotels, airlines, and travel websites employ tier-based and customized reward schemes to induce repeat bookings. Consumers favour programs with free stays, flight upgrades, and dining offers, fuelling expansion in loyalty programs in this category.
Companies infuse AI-driven analytics to provide individualized rewards based on customer habits and patterns. Mobile applications, e-wallets, and gamification-driven loyalty schemes enhance the engagement between the consumer and loyalty programs, which becomes more desirable and efficient.
The India fidelity Program Market is characterized by a different range of players, including technology enterprises, retail titans, and devoted fidelity program providers.
Companies separate themselves through innovative price structures, strategic hook-ups, and advanced data analytics to enhance client engagement and retention. The request features a blend of home-grown companies and global realities, all seeking to expand their footmark in the Indian request.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Capillary Technologies | 15-20% |
| InterMiles (Jet Privilege Pvt. Ltd.) | 10-15% |
| Zeta | 8-12% |
| EasyRewardz | 5-10% |
| Other Companies (combined) | 45-55% |
| Company Name | Key Offerings/Activities |
|---|---|
| Capillary Technologies | Provides Omni channel loyalty solutions, customer data platforms, and AI-driven analytics. Acquired US-based Brierley Partners to enhance global presence. |
| InterMiles (Jet Privilege Pvt. Ltd.) | Operates a frequent-flyer program offering online travel bookings, co-branded credit cards, and partnerships across various sectors. |
| Zeta | Offers digital payment solutions, employee benefits, and banking technology platforms. Secured significant investments to expand services. |
| EasyRewardz | Specializes in customer engagement and rewards platforms, providing B2B loyalty management solutions. Received investment from Flipkart to enhance offerings. |
Strategic Outlook of Key Companies
Capillary Technologies (15-20%)
Capillary Technologies leads in furnishing Omni channel fidelity results and AI- driven client analytics. The accession of USA- grounded Brierley Partners has strengthened its global footmark, enabling the company to offer enhanced fidelity results worldwide. unborn strategies include expanding AI capabilities and exploring new assiduity verticals to diversify their customer base.
Inter Miles (Jet Privilege Pvt. Ltd.) (10-15%)
Intermixes, formerly Jet Privilege, operates a comprehensive fidelity and prices program with a strong emphasis on the trip sector. Despite Jet Airways ceasing operations, Inter Miles has continued to thrive by diversifying its hook-ups across colourful diligence, including hospitality and retail.
Cite turn0search1 the program boasts roughly 10 million members, reflecting its significant request presence. Unborn strategies involve enhancing digital platforms and expanding co-branded credit card immolations to increase member engagement.
Zeta (8-12%)
Zeta specializes in digital payment results and banking technology platforms, feeding to both commercial guests and fiscal institutions. The company has secured substantial investments, including USD 250 million from Softbank Vision Fund 2, elevating its valuation to USD 1.45 billion. Zeta's focus is on expanding its product suite and entering new requests, particularly in the banking- as-a-service sector.
EasyRewardz (5-10%)
EasyRewardz offers customer engagement and rewards platforms, primarily targeting B2B clients. The company's solutions enable businesses to manage loyalty programs effectively. An investment from Flipkart has bolstered EasyRewardz capabilities, allowing it to integrate with major retail platforms and enhance its technological infrastructure plans including expanding service offerings and entering new industry segments to broaden its client base.
Other Key Players (45-55% Combined)
Several other companies contribute to the India Loyalty Program Market, focusing on niche segments and innovative solutions. Notable players include:
The India Loyalty Program industry is projected to witness a CAGR of 16.1% between 2025 and 2035.
The India Loyalty Program industry stood at USD 3.8 billion in 2024.
The India Loyalty Program industry is anticipated to reach USD 17.1 billion by 2035 end.
Southern India is set to record the highest CAGR of 13.1% in the assessment period.
The key players operating in the India Loyalty Program industry include Payback India, InterMiles, Pine Labs, Capillary Technologies, Epsilon, and BI Worldwide.
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India Loyalty Program Market
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