Embedding financial rewards into consumer shopping journeys

Shawn Conahan is chief revenue officer of Wildfire Systems, a white-label cashback and shopping rewards loyalty platform. Wildfire partners with many large banks and fintechs that deliver these offerings. Mr. Conahan has been an entrepreneur, senior executive and investor in the wireless, technology and internet industries for more than 15 years.

Loyalty programs continue to be popular among today’s consumers. A recent study by BCG found that the average U.S. consumer belongs to more than 15 loyalty programs. Consumers want more than just membership. They seek consistent, convenient experiences that add value, according to Marigold’s 2024 Consumer Trends Index. 

Loyalty program rewards have historically functioned as post-purchase incentives, in which consumers received rewards in the form of statement credits or points that could be redeemed later. 

As consumer expectations for ease, simplicity, and value in digital experiences continue to increase, a rising trend in 2025 will be the integration of real-time benefits and loyalty rewards directly into the shopping experience. This shift is powered by digital tools such as apps and browser extensions, which seamlessly integrate rewards into the shopping experience.

The journey to embedded rewards
Credit card rewards programs have long been a consumer finance staple, with incentives like cashback on purchases that apply to future statements, or points/miles that can be redeemed for travel buys later. While still popular, these programs are evolving as technology and consumer expectations drive the rise of embedded rewards and real-time shopper benefits.

The leading banks and fintechs now offer their customers popular browser extensions which identify and offer cashback and coupon opportunities when customers visit retailers online. In this way, embedded rewards are integrated into the shopping experience, ensuring the customer receives discounts, coupons or cashback when they need it most. This shift aligns with consumers’ growing preference for convenience as they shop, and helps them capture value almost automatically.

Embedded rewards that enhance the consumer journey
Today’s loyalty program landscape includes an array of extra features, such as shopping portals, dining rewards, insurance and warranty offerings, as well other benefits. A key advantage of embedded rewards is their ability to deliver contextually relevant, meaningful offers at the right moment. Unfortunately, customers don’t always effectively utilize all these value-adds. The next phase of rewards will extend beyond cashback and coupons to embedded benefits that use instant notifications to remind customers of additional benefits from their loyalty program or credit card. For example, when a consumer books a rental car online, a browser extension reminds them they should use a specific credit card offering for free loss damage waiver insurance.

Embedded rewards functioning this way do not replace traditional credit card rewards but rather complement and enhance them — offering consumers new ways to maximize their benefits. Another good example of embedded rewards occurs when travelers shop for a flight. In this scenario, as they browse flight options, the shopper will see a reminder from their browser extension to purchase their flight with the credit card offering ten times the number of travel points.

This convenient, seamless approach benefits the customer by ensuring they maximize the value they receive from their card or program membership, driving more engagement and creating more loyalty in the long run.

The connection between embedded rewards and embedded lending
The trend of embedding rewards into shopping journeys mirrors another key consumer trend: embedded lending. Like embedded rewards, embedded lending integrates financial solutions directly into the online shopping journey. Services such as Buy now, pay later offered at checkout and on-the-spot credit approvals from merchants illustrate how consumers increasingly expect benefits to be built directly into their shopping experiences.

No passing fad
The trend of embedding loyalty rewards and benefits into online shopping journeys is here to stay. As AI and real-time data processing continue to advance, we’ll likely see embedded rewards evolve to include hyper-personalized shopping experiences that predict shopper preferences and proactively offer deals or suggest merchants. 

For consumers, embedded rewards mean every purchase could soon be an effortless opportunity to maximize value. For businesses, they present a chance to drive engagement, increase customer loyalty, and stand out in a highly competitive landscape.