Loyalty & Rewards
Perks, and Security
Loyalty programs in Canada are still as popular as ever and continually evolving but with the popularity comes risks.
It’s no secret that Canadians love their loyalty programs. A day doesn’t go by without rewards being discussed in the media, online forums, blogs, and across social media. Whether it’s for retail shopping, travel, cash back, gas, you name it, we love to be rewarded for it.
With loyalty programs being as popular as ever and with so much competition, the programs have to constantly change their offerings to stand out. One of the biggest trends in the loyalty landscape is the enhancement of existing and new partnerships to bring more value to the program and the consumer.
Notable partnerships and enhancements
We recently saw Petro-Points tie the knot with Canadian Tire’s Triangle Rewards, where you can now earn in both programs at the same time when buying gas. Likewise, AIR MILES, BMO and Shell enhanced their offer for BMO AIR MILES Mastercard holders where they now receive discounts on gas purchases in addition to being able to earn and redeem miles. There is also a relatively new, but old player taking on the big names in loyalty. RBC has opened their Avion Rewards to all Canadians, not just RBC banking clients with the introduction
Exploring the Future of Loyalty with Mastercard’s Jess Lee
Mastercard is transforming how brands think about loyalty by offering higher-value, personalized and passion-driven experiences tailored for Canadians.
There’s no getting away from it: Canadians love loyalty programs. But despite the average Canadian consumer participating over 10 rewards programs, they’re increasingly looking beyond traditional "cashback and points" rewards.
Today’s adventurous and entrepreneurial consumers are seeking out personalized, high-value interactions and experiences –and assurances that their data is safe.
With over 1,100 loyalty programs, 1.5 trillion points managed globally, across 120+ countries, Mastercard is using its global scale and decades of experience to redefine loyalty.
We chatted with Jess Lee, Vice President of Loyalty at Mastercard, Canada, to learn more about the company’s vision for a personalized, passion-driven loyalty experience that caters to new and diverse consumers.
Tell us what the future of loyalty looks like?
Jess Lee: Today, convenience, utility, and personalization are shaping new standards across the industry. Brands are rethinking traditional loyalty benefits and leaning more on personalized interactions, customized benefits, and other experiential rewards. This approach helps build a real connection to the brand and strong, lasting relationships.
How is Mastercard driving innovation in this space?
JL: Our focus is on adapting to customer needs across various markets and industries — from crypto to travel and beyond. This involves a deep focus on AI, hyper-personalization, gamification, and emerging payment
of Avion Select. Like most open-to-all programs it can be combined with other credit cards and loyalty reward programs.
Combatting Security Issues
With the programs being so popular and increasingly digital, they are open to being hacked and for fraudulent use. There has been exponential growth in account takeovers where points are drained for cash-like rewards by hackers or fraudsters, increased abuse of programs by members who don’t play by the rules.
The programs work hard to combat and minimize security breaches and
fraud. There has been some success but also failures where programs security algorithms are too sensitive and everyday members who follow the rules are having accounts suspended. It is up to the consumer to make sure their accounts are safe, checked on a regular basis for account takeovers, enable two factor authorization, and strengthen or change your passwords frequently. Loyalty currencies are just that — they are currency to the member, and they should be cared for the same way that people treat and protect their finances.
trends. Mastercard also prides itself on its responsible and transparent use of data, because we understand confidence in data protection earns loyalty.
How does Mastercard define loyalty?
JL: We believe loyalty is an outcome and not a program. It takes more than points and rewards to build lasting loyalty – it’s about creating personal connections through compelling experiences. Master card understands this is an investment worth prioritizing.
In today's landscape, why is it so important?
JL: Most simply, loyalty does much more than rewarding individual transactions — it’s proven to build trust and connection. This is critical to turning customers into advocates who love and promote the brand, helping create valuable relationships that can last a lifetime.
Tell us about Mastercard's approach.
JL: Consumers are seeking greater meaning for experiences to bring value and meaning to their lives and build upon their passions, and they’re travelling for a purpose more than ever, whether that’s to watch live sports, concerts, or attend food events. Mastercard works to drive value through various benefits, such as our Concierge service with Surprise & Delight in delivering a surprise during key cardholder moments. We worked with a customer that provided its cardholder with our concierge service to
secure a restaurant reservation to announce her wedding engagement. We arranged for a complimentary dessert course as part of our surprise and delight.
How does Mastercard deliver on personalized experiences?
JL: We know that about 80 per cent of our customers want more personalized promotions. That’s why Mastercard’s loyalty solutions are more than one-size-fits-all – they’re tailored for Canadians, focused on what they value the most.
A great example is our Mastercard Offers program. We create personalized loyalty offers that are highly relevant and unique. We ran a test vs. control campaign on a 10 per cent cash back offer, and results have shown that there was a 23 per cent increase in spend of test vs. control group.
Ultimately, we're focused on supporting our customers to unlock priceless possibilities to enrich the cardholder experience, building brand equity and loyalty in a digital-first world.
Tania Amardeil
Patrick Sojka
