Credit card rewards were once built around aspiration. Spend money, earn points, take a fancy holiday.
For years, that promise shaped how Australians approached everyday spending.
But in today’s cost-of-living environment, that mindset is shifting.
New research from MONEYME, conducted in partnership with YouGov, suggests a growing number of Australians no longer see airline points as a meaningful reward.
Instead, they are prioritising something far more practical: getting money back on the purchases they are already making.
The national survey of 1,020 credit card holders found that 85 percent would consider switching from points-based rewards to cashback, while 69 percent said those points do not reflect their lifestyle. Over half reported that redeeming rewards is harder than it should be, and 37 percent admitted they do not understand what their points are actually worth.
This is not just a financial shift. It reflects a broader change in how Australians are thinking about their day-to-day lives.
When budgets are tight, the idea of building points for a future holiday feels increasingly disconnected from the reality of weekly expenses.
When everyday costs take priority over future rewards
Airline points have traditionally been tied to long-term goals such as overseas travel. But for many households, that kind of planning has taken a back seat.
Rising costs across groceries, fuel, childcare and housing have forced a more immediate focus. The question is no longer how to maximise rewards in the future, but how to make everyday spending go further right now.
At the same time, points-based systems have become more complex to navigate. Consumers are expected to track earn rates, manage expiry dates and work around limited redemption availability. Even then, the value of those points can vary depending on how they are used.
For time-poor households, particularly parents juggling work and family responsibilities, that complexity can turn rewards into another task rather than a benefit.
Clayton Howes, CEO of MONEYME, says many consumers are now reassessing whether those rewards deliver real value.
“Just having a points card can feel clever. But many people don’t actually compare the value of their points against the fees. It might be time to take out the calculator and understand your net gain or loss based on your own spending habits.”
In a cost-of-living crisis, delayed or uncertain rewards are being weighed against more immediate financial needs.
Turning everyday spending into something useful
Cashback reflects a different way of thinking about rewards. Instead of accumulating points tied to future travel, it provides a direct return on everyday purchases.
That shift is practical, given groceries, petrol, bills and coffee are unavoidable expenses. Receiving money back on those transactions creates a small but consistent offset against rising costs – especially when the money earned can be used to offset these costs in the future.
Rather than planning around when points can be redeemed, cashback is applied in real time, making it easier to see the benefit and incorporate it into monthly budgeting.
Howes says this growing preference for simplicity is driving the change.
“People want to understand what they’re getting back today with their credit card, not just what might accumulate over time. If you can’t translate rewards into dollar terms, the value starts to feel distant rather than real.”
For households managing busy schedules, that clarity reduces the effort involved in managing finances and allows rewards to fit more naturally into everyday life.
A simpler model for modern households
This shift in behaviour is now influencing how credit cards are designed.
The survey results led MONEYME to launch a new Cashback Rewards Credit Card, replacing airline points with a flat one percent cashback on eligible everyday purchases, credited monthly.
Applications for the card exceeded monthly targets in just a few days of launching, according to MONEYME, highlighting the
The structure is straightforward. Spending on essentials such as groceries or fuel generates a clear, predictable return, without the need to navigate redemption systems or fluctuating values.
Beyond cashback, the card offers a practical everyday tool. It includes built-in mobile phone insurance, purchase protection and event ticket cover at no additional cost. Approved customers can access their card digitally and add it to Apple Pay or Google Pay within minutes, reflecting how Australians increasingly manage payments.
Customers can also check their personalised rate and credit limit before applying, without impacting their credit score, making it easier to make informed decisions upfront.
The broader shift goes beyond one product. It reflects a more deliberate approach to spending, where consumers are prioritising value that is immediate, visible and easy to access.
“Points programs only deliver value when redeemed strategically, which requires consistency, flexibility and time. If you’re not actively unlocking that value, then it may as well not exist,” Howes says.
Cashback removes that dependency. The value is realised automatically, turning everyday spending into a consistent financial benefit rather than a distant reward.
For many Australians, particularly those balancing work, study and family life, that shift feels less like a financial strategy and more like a practical adjustment to modern living.
