Incentives Market Pulse AU/NZ

CONFIDENTIAL

Incentives Market Pulse

AU/NZ

March 2026 Edition

Prepared for

Katy Shaw, Digital Glue Australia

Prepared by

Market Pulse Research Pty Ltd.

Not for distribution. Commercial intelligence purposes only.

Table of Contents

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1. Executive Summary 3

2. Market Context & Drivers 5

3. Evaluation Framework Summary 7

4. Entity Profiles by Tier 9

5. Demand Signals by Vertical 15

6. Competitor & Partner Watch 17

7. Offer Mechanics & Experience Signals 19

8. Risk & Abuse Watch 20

9. Regulatory & Compliance Watch 21

10. Watchlist Adjustments 22

11. Source Gaps & Intelligence Upgrades 23

12. Appendix 24

1. Executive Summary

Market Thesis

The AU/NZ incentives and loyalty landscape is undergoing its most significant transformation in decades. Three macro forces are reshaping the market: (1) major program overhauls from Qantas and Myer introducing 'on-the-ground' status earning and card-linked partnerships; (2) regulatory pressure on supermarket pricing and loyalty transparency; and (3) the collapse of Cashrewards, leaving ShopBack as the dominant cashback player. These shifts create both opportunities and threats for Digital Glue's enterprise incentive business.

Scope Statement

This report evaluates 18 entities across the AU/NZ loyalty ecosystem, covering the period January-March 2026. Sources include company announcements, regulatory filings, earnings calls, and industry conferences. Scoring follows a three-dimension methodology: Current Offering (40%), Strategic Vision (35%), and Market Presence (25%).

5 Key Changes + Commercial Implications

1. Qantas Status Revolution: Qantas Frequent Flyer's February 2026 announcement introduces 'Status Credits on the Ground' (up to 140 SC/year from everyday spending) and Status Credit rollover. This fundamentally changes loyalty economics, creating new partnership opportunities for non-airline brands to attach to status-seeking behavior.

2. Cashrewards Closure: Australia's second-largest cashback platform ceased operations in September 2025. ShopBack now dominates the category but is retrenching its in-store offering (ShopBack Pay closes March 2026). This consolidation creates white space for enterprise incentive providers to capture displaced volume.

3. Myer One Expansion: Myer's October 2025 relaunch added card-linked earning at Dan Murphy's, DoorDash, Petbarn and others. The program now spans 4.7 million active members with 825,000 new joiners in FY25. Card-linking technology from Loyal Solutions is enabling this ecosystem expansion.

4. Everyday Extra Devaluation: Woolworths removed the 10% BIG W discount from Everyday Extra subscriptions effective June 2025, citing 'focus on everyday low prices.' This reduces subscription value and may drive churn, creating acquisition opportunities for competitors.

5. Velocity Spend-Based Status: Virgin Australia completed its transition to spend-based status earning in April 2025 (1 SC per $12-24 spent). The program also introduced Forever Gold and Platinum Plus tiers. Velocity's partnership with Myer for point redemption expands cross-program opportunities.

5 Priority Watchpoints

• Qantas partner expansion for 'on-the-ground' Status Credits - which brands will be first?

• ACCC enforcement action on supermarket 'excessive pricing' from July 2026

• PrezzeePay consumer launch (early 2026) - global gift card acceptance in 183 countries

• Air New Zealand's Koru program launch (April 2026) - complete Airpoints rebrand

• Treasury's unfair trading practices legislation - subscription and drip-pricing rules

2. Market Context & Drivers

Economic Pressures

Cost-of-living pressures continue to dominate consumer behavior. According to KPMG's Australian Retail Outlook 2026, 86% of Australians prioritize affordable prices, with 66% actively seeking discounts or promotions. Loyalty programs have shifted from 'nice-to-have' to essential tools for value-conscious shoppers. The average Australian belongs to 4-7 loyalty programs but actively uses fewer than half.

Retailers report 43% have seen increased customer loyalty from program investments, while 22% admit their strategies have not delivered desired results. This creates a bifurcation: programs that deliver genuine value thrive; those perceived as gimmicks face abandonment.

Technology Trends

AI and Hyper-Personalisation