Why Banks Offer Such Massive Reward Multipliers on Their Loyalty Portals

Reward portals are quickly becoming a battleground for bank card issuers to woo consumers. Offering up to 50 times the usual reward points, these platforms are not purely for generosity—they’re strategic tools crafted to drive engagement, loyalty, and ultimately, profit. The Loyalty-Pull Strategy Banks earn more when users stay within their universe—shopping via portals provides them with granular spending data and enables them to offer partner merchants targeted promotions. In return, increased portal usage reinforces customer loyalty. Double win? Yes. Triple win? You get the point. Different Models, Same Goal From HDFC’s SmartBuy and AmEx’s Xcelerator to Axis Bank’s TravelEDGE, each portal offers unique multipliers—for high-value categories like flights, hotels, and lifestyle purchases. Newer players like HSBC and IDFC First Bank are even more aggressive, offering as much as 12× and 50× returns, respectively, to seize customer attention.

High multipliers create buzz and perception of “big wins” for consumers. Even when there are caps or reduced point value, users perceive this as superior value—motivating more spending via the portal. Banks win by locking-in high-value customers and influencing how they spend. Smart Usage Pays Off Credit-savvy users can amplify their value by aligning expenses—travel, shopping, medical—through these portals. Some even move points to airline or hotel partner programs for better yield. The key is optimizing categories and staying within monthly limits while using the right card for the right purchase.

These turbocharged reward schemes are less a cost center and more a marketing investment for banks—one that reinforces digital engagement, builds customer stickiness, and differentiates brands in a crowded market. For consumers, the savvy use of these portals could translate into meaningful gains—if used strategically.