Why Banks Offer Such Massive Reward Multipliers on Their Loyalty Portals

Banks across India are offering up to 50× reward points on credit card spends through their loyalty portals—an offer fueling customer engagement like never before. Whether it's for booking flights, hotels, or shopping, these portals deliver rewards at a rate that outpaces standard card usage, encouraging cardholders to shop via bank platforms and—as a bonus—keep them hooked. This strategy helps banks gather valuable spending data while rewarding loyal usage. Institutions like HDFC Bank pioneered this trend with their SmartBuy portal, offering up to 10× points on flights and PharmEasy spends, while American Express turbocharges points via Rewards Multiplier and Rewards Xcelerator for lifestyle categories. Axis Bank rewards travel spends through TravelEDGE, and newcomers like HSBC and IDFC First Bank are raising the ante—HSBC gives 6× on flights and 12× on hotels, while IDFC First offers up to 50× points on hotel bookings. This intensified rewards push reflects the competitive drive among banks to attract and retain high-value customers. The portals essentially guide customers to preferred platforms, strengthening the bond between issuer and cardholder. As newer players adopt aggressive reward multipliers, the pressure is on traditional banks to innovate further to uphold loyalty and share of wallet.