Level up loyalty: How gaming is transforming customer rewards

With more than 57%[1] of companies across Asia struggling to retain customer loyalty, businesses are looking for new ways to drive engagement. One solution lies in an unexpected but powerful sector – gaming.

According to an IDC InfoBrief, developed with support from Mastercard, Reinventing Rewards: A New Game Plan for the Loyalty Program Industry, businesses are grappling with retaining customers in today’s digital-first era where traditional reward models are losing their appeal. Notably, the InfoBrief highlights that by 2027, to differentiate and drive loyalty, 30%[2] of Asian organizations will shift their focus from providing experiences to maximising value for their customers.

With the global gaming market projected to reach $226 billion by 2025, and with Asia accounting for more than half (56%[3]) of this growth, businesses have a significant opportunity to integrate gaming into their loyalty programs. This innovative approach offers a powerful tool to engage customers in a more meaningful and lasting way, tapping into the passion and enthusiasm of the gaming community.

Gaps in traditional loyalty programs 

Traditional loyalty programs rely primarily on short-term promotions and rigid structures, failing to engage customers in a meaningful way. Today’s digital-first consumers expect rewards that are personalized, seamless, and experiential—elements that gaming inherently offers. The InfoBrief highlights the need for businesses to shift from a profit-driven mindset to a more dynamic, customer-centric approach that fosters deeper engagement and long-term retention.

“The gaming industry presents a unique opportunity for businesses to reinvent their loyalty programs and appeal to a highly engaged audience. By incorporating game-based rewards, companies can not only enhance customer experiences but also attract a new, high-spending user base. The shift from rigid point-based systems to immersive engagement strategies will be key to fostering long-term customer relationships and maximizing retention in today’s digital economy,” said Abhishek Kumar, Associate Research Director, IDC Asia/Pacific. 

As the gaming industry continues to expand, businesses have a unique opportunity to engage and retain customers by tapping into the rapidly growing gamer currency market.

“Gaming is no longer just a trend – it's a dynamic and inclusive reality that touches the lives of billions worldwide. With a diverse audience that spans various age groups, genders, and income levels, gaming offers something for everyone. As it evolves into a significant growth market, particularly in Asia, players are eager to enhance their digital experiences. To meet these needs, Mastercard remains committed to bridging passion and practicality, enabling gaming enthusiasts to elevate their experiences and extend their influence beyond the game," said Ajeet Chauhan, vice president, Products and Solutions, Asia Pacific, Mastercard.

Unlocking potential in the gaming industry 

Mastercard Gamer Exchange is a first-of-its-kind solution that lets users convert unspent loyalty points earned from banking services, retail, and airlines into gaming credits across a vast selection of the world’s most popular gaming titles. This platform facilitates bite-sized redemptions, eliminating the need for large point balances and unlocking new avenues for customer loyalty in a rapidly evolving digital economy.

“The motivation to create Mastercard Gamer Exchange in 2021 was to bridge the gap between digital assets and real-world value, giving gamers more flexibility and choice while enabling businesses to tap into a rapidly growing economy. At Mastercard, we aim to connect people with their passions—whether in sports, arts, music, or gaming. Mastercard Gamer Exchange, the world’s first reward points conversion engine for gaming credits, was conceived with the vision of bringing people closer to their love for gaming by linking partners’ loyalty programs with the global gaming community,” said Kaveri Khullar, Senior Vice President, Consumer Marketing & Sponsorships, Asia Pacific, Mastercard.

The InfoBrief provides three cost-effective actions businesses should take to implement a gaming-oriented loyalty program: 

• Adopt initiatives to maximize value for consumers: Make it easy to join the program and offer a flexible redemption process, giving users the freedom to use their points as desired. 
• Work with partners experienced in loyalty programs and gaming: Choose providers with expertise in gaming and loyalty integrations, ensuring seamless management of gaming currencies and loyalty points across multiple platforms.
• Prioritize seamless and secure integration: Choose third-party solutions with plug-and-play APIs for faster deployment, seamless integration with customer systems, real-time reward tracking, and proven stability to protect personal data while supporting gaming market growth.

To gain deeper insights into leveraging the gaming industry for innovative loyalty programs, read the full report here. Visit Mastercard Gamer Exchange to learn more about this groundbreaking solution and how it is transforming customer loyalty.