A New Game Plan for the Loyalty Program Industry

A conversation with the senior vice president, Consumer Marketing & Sponsorships for APAC at Mastercard, about rethinking loyalty programs for Asia’s diverse and rapidly growing gaming community.

This article was first published in Branding in Asia.

According to new research, by 2025, there will be over 3.5 billion gamers worldwide, with nearly half (49%) in Asia-Pacific. For marketers and brands, this is no longer a niche market.

The recently released IDC InfoBrief, Reinventing Rewards: A New Game Plan for the Loyalty Program Industry, sponsored by Mastercard, notes that 35% of gamers in the region are women, and the average player is over 30 years old. Despite this, gaming loyalty programs still largely target core gamers, leaving a sizable untapped opportunity.

At the same time, traditional loyalty programs are struggling, with 57% of companies in Asia finding it harder to keep customers engaged.

To learn more, we spoke with Kaveri Khullar, senior vice president, Consumer Marketing & Sponsorships, APAC, Mastercard.

The recently released IDC InfoBrief, Reinventing Rewards: A New Game Plan for the Loyalty Program Industry, notes that “traditional loyalty programs rely primarily on short-term promotions and rigid structures, failing to engage customers in a meaningful way.” Can you expand on this? Where do you think traditional programs have lost their relevance?

Traditional loyalty programs were built on a transactional foundation—earn points, get rewards. While that model once drove repeat purchases, it hasn’t kept pace with how consumers engage with brands today. These legacy systems tend to operate in silos, treating all customers the same, with limited ability to adapt to individual needs or moments in real time.

Today’s consumers—particularly Millennials and Gen Z—aren’t just looking for more points or deeper discounts; they’re looking for brands that understand their preferences, reflect their values, and provide experiences that feel personal, relevant, and culturally fluent.

Traditional programs have lost relevance because they haven’t evolved from being purely transactional to being relational. The one-size-fits-all approach doesn’t inspire loyalty; it commoditizes it.

To compete in this new era, brands need to reframe loyalty as a value exchange built on trust, connection, and mutual benefit. That means:

• Real-time relevance: Using data intelligently to anticipate needs and deliver timely, context-aware experiences—not just rewards after the fact.
• Passion-based Engagement: Designing moments that create delight, build affinity, and align with what customers care about—not just what they spend.
• Community and shared purpose: Creating ecosystems where consumers feel a sense of belonging in a hyper-digital world.
• Strategic innovation: Embracing emerging technologies, gamification, and cross-industry partnerships to extend the value of loyalty across every touchpoint.
  
  

The future of loyalty is about personalization, and shared purpose—that turn customers into advocates and participants in the brand journey.

With the average gamer now over 30 and more than a third identifying as women, what does a more inclusive loyalty strategy look like in this space?

The gaming landscape today is far more diverse than many assume. While legacy thinking might still lean on age or gender-based segmentation, true engagement comes from recognizing that passions like gaming transcend traditional demographics. Whether it’s competitive esports, mobile gaming, or immersive story-driven titles, players are motivated by different experiences—and they come from all walks of life.

Today’s consumers—particularly Millennials and Gen Z—aren’t just looking for more points or deeper discounts; they’re looking for brands that understand their preferences, reflect their values, and provide experiences that feel personal, relevant, and culturally fluent.

In fact, with over 3.3 billion gamers globally—and nearly half of them in Asia—we’re talking about one of the most expensive and inclusive passion pillars worldwide. That includes not just men and women, but also non-binary gamers, older adults, people with disabilities, and parents who game with their children. So, loyalty strategies must reflect that reality—not reinforce outdated assumptions.

A more inclusive loyalty approach in gaming is less about who the player is on paper and more about how and why they engage. It should start with recognizing different player archetypes—social gamers, casual players, narrative-driven explorers, competitive pros—and curating rewards that resonate with their motivations.

That might mean offering early access to new content, meaningful social interactions within gaming communities, exclusive virtual collectibles, or recognition-based incentives that reflect players’ style of play.

At Mastercard, we believe in designing loyalty through the lens of access, authenticity, and empowerment. When loyalty reflects the richness of the gaming ecosystem, it becomes more than a program—it becomes part of the experience.

The report highlights how the gaming audience is evolving, especially in Asia-Pacific. What do brands often misunderstand about modern gamers, and how does that affect how they approach loyalty programs?

Brands tend to treat gamers as a single, simplified segment, leaning heavily towards Gen Z and younger cohorts. This overlooks the reality that today’s gaming audience, especially in Asia Pacific, is incredibly diverse in terms of age, gender, socioeconomic background, and play style.

There’s also a tendency to rank certain types of gaming as more ‘serious’ than others, prioritizing PC or console gaming over mobile, for example. Esports and competitive gaming get a lot of attention, and rightfully so—they’re high-profile, with massive fan bases and strong cultural influence. But brands often miss that casual and social gaming actually make up the majority of the gaming market. These segments account for roughly 69% of global gaming revenue today and are projected to grow to over 76% by 2028. So, while esports is popular, it’s not representative of how most people play.

Brands often miss that casual and social gaming actually make up the majority of the gaming market. These segments account for roughly 69% of global gaming revenue today and are projected to grow to over 76% by 2028.

Because of this, many loyalty programs are skewed toward rewarding hardcore or competitive behavior—ranking, winning, or grinding through levels. In this region, gaming is also highly social and skewed to mobile devices. Loyalty programs that tap into this social dynamic, rewarding engagement and connection, and not just gameplay, can unlock far deeper, long-term brand loyalty.

That’s what Mastercard Gamer Exchange, a platform that converts loyalty points to gaming currency, demonstrates: by offering a breadth of gaming titles from casual to competitive to consumers across a range of demographics.

How can elements from gaming—such as interactivity, progression, and reward mechanics—help reinvent loyalty programs for today’s consumers?

Interactive components such as missions, challenges, and mini-games transform loyalty programs into engaging adventures, encouraging ongoing participation, and forging memorable brand connections. This shift from passive to active involvement deepens engagement.

Gaming-inspired reward mechanics allow seamless, flexible redemptions that deliver instant gratification. Allowing consumers to convert loyalty points into something meaningful.

Progression systems, like levels, achievements and badges, bring the thrill of gaming into loyalty programs, offering users a sense of achievement. As players reach milestones or complete tasks, they unlock enhanced rewards and exclusive experiences, keeping them engaged and motivated.

Gaming-inspired reward mechanics allow seamless, flexible redemptions that deliver instant gratification. Allowing consumers to convert loyalty points into something meaningful, like gaming credits or tailored perks, adds tangible value and elevates satisfaction.

By embracing these elements, brands evolve loyalty programs from static transactions into dynamic, consumer-focused experiences. This shift is important to building lasting loyalty and retention in an increasingly competitive, fast-paced digital landscape.

You’ve pointed out that mobile gamers, Gen X, and casual players are often overlooked in current models. What’s the risk for brands that continue to focus only on ‘core’ gamers?

Focusing solely on ‘core’ gamers puts brands at risk of missing the forest for the pixels. Mobile gamers, Gen X, and casual players aren’t fringe segments; they’re the driving force behind much of gaming’s global growth, especially in Asia Pacific. Mobile alone accounts for nearly half of the world’s three billion gamers, and Gen X (aged 35 – 44) represents some of the most engaged and highest-spending players.

As smartphones and 5G access continue to democratize gaming, the definition of a “gamer” is evolving rapidly. Brands that fail to adapt risk appearing out of touch and losing relevance with the next wave of players.

Loyalty programs that don’t cater to mobile and casual gamers often fall short in driving engagement. To truly resonate, these programs must embrace the full spectrum offering rewards that are flexible, inclusive, and tailored to different play styles.

The report suggests industries like retail, telecom, and financial services stand to benefit most from integrating in-game currencies into rewards programs. Can you share a practical example of how this might work?

In-game currencies are one of the most powerful tools for transforming loyalty programs especially in industries like retail, telecom, and financial services, where differentiation is increasingly defined by relevance, not reach.

Consider this: the average gamer today is not just a teenager with a console – it’s a commuter playing on mobile, a Gen Xer managing a guild, a millennial parent gaming with their kids. By enabling loyalty points to be converted into in-game currencies, whether for exclusive skins, credits, or battle passes, brands aren’t just offering a reward; they’re embedding themselves into consumers’ passion journey.

For instance, in banking, customers typically accumulate loyalty points through activities like credit card usage. By allowing these points to be converted into gaming credits for popular titles, banks can appeal to tech-savvy audiences, providing a flexible and relevant reward option that strengthens loyalty. It shifts loyalty from “earn and burn” to “earn and belong.”

Retailers can go a step further, turning transactions into access. Imagine a shopper earning points that unlock rare in-game collaborations or digital collectibles, blurring the lines between commerce and culture. This not only boosts the perceived value of loyalty programs but also taps into the gamer demographic’s interests, fostering deeper engagement.

For telecom, loyalty isn’t just about reducing churn—it’s about driving affinity. Rewarding actions like renewals or data usage with gaming perks creates a virtuous loop of interaction, value, and brand stickiness.

Ultimately, integrating in-game currencies signals a shift from loyalty as a cost centre to loyalty as a growth engine. It connects transactional behaviour to cultural capital and the brands that embrace this shift won’t just retain customers. They’ll win fans.

For marketers in Asia-Pacific looking to innovate, what’s one place to start when rethinking loyalty through the lens of gaming?

Start where passion meets scale: gaming.

With over half of the world’s gamers residing in this region, gaming isn’t just entertainment, it’s digital culture, economic momentum, and a gateway to deeper consumer connection. Loyalty programs that ignore this shift risk becoming relics of a transactional past.

Ultimately, integrating in-game currencies signals a shift from loyalty as a cost centre to loyalty as a growth engine. It connects transactional behaviour to cultural capital and the brands that embrace this shift won’t just retain customers. They’ll win fans.

One high-impact place to start is to enable the conversion of unspent loyalty points into in-game currency. This simple pivot transforms dormant value into dynamic engagement, especially powerful in a mobile-first, reward-hungry region like Asia Pacific. Whether it’s skins, passes, or digital collectibles and more, redemptions that reflect how people live and play today will always outperform generic discounts.

To implement this effectively, marketers should focus on three key areas:

• Simplify the UX: Make earning and redeeming frictionless. Reward redemption should feel more like play, less like admin.
• Build with the right partners: Collaborate with organizations that excel in both loyalty management and gaming. This ensures seamless integration and management of rewards and gaming currencies.
• Think modular, act fast: Deploy plug-and-play tech that integrates quickly and scales easily because loyalty needs to move at the speed of culture.

By embedding into the gaming economy, brands shift loyalty from a cost center to a cultural driver, future-proofing their relevance in one of the world’s most dynamic digital markets.

Are there any loyalty programs—whether gaming-related or not—that you think are doing an especially good job of adapting to modern consumer behavior?

Across Asia Pacific, loyalty programs that move beyond transactional rewards are the ones driving real impact. The most effective are anchored in personalization, gamification, and community – three pillars that reflect the evolving expectations of today’s consumers.

Sephora’s “Beauty Pass” is a standout in the region. In markets like Singapore, Thailand and Malaysia, it seamlessly bridges the online and offline experiences. Members receive tailored product recommendations, early access to launches, and experiential rewards like makeovers and private beauty classes. It’s a data-led program where real-time insights drive personalized interactions across e-commerce and retail touchpoints – something many brands still struggle to execute effectively.

The LEGO Insiders Program is another strong example and this time of community-powered loyalty. In Asia’s family-oriented cultures, LEGO rewards not just purchases but participation whether it’s registering sets, joining design contests, or voting on fan-created builds. Programs like LEGO Ideas turn loyal customers into co-creators, a powerful strategy in the region’s growing creator economy.

The takeaway is clear: In Asia Pacific, generic points and perks aren’t enough. The most successful loyalty programs today are deeply attuned to what truly motivates their members, offering recognition, curated experiences, and a sense of belonging. Loyalty is no longer earned through transactions alone. It’s built through trust, relevance, and emotional resonance.