Points.com reports ongoing surge in loyalty points exchanged online

Points International Ltd.`s pointsxchange service, which it operates on Points.com, is seeing continuous sharp quarterly increases in the number of points exchanged among loyalty programs offered by hundreds of companies, among them a new crop of member retailers including J.C. Penney Co. Inc., American Eagle Outfitters, Spiegel Catalog, and eBay Inc., Points says.

Kelly Campione, incentive business manager for Spiegel Catalog, which includes Spiegel.com, says Points.com has begun to show results in increased sales since Spiegel joined up as an exchange partner a month ago. "So far dollars are coming in to us through Points.com," she tells InternetRetailer.com. "It seems to be a successful program."

The number of exchange transactions grew 50% quarter-to-quarter throughout last year, and the company says it expects that rate to continue or even accelerate this year. Although Points hasn`t reported its first-quarter activity yet, its recent signings with major retailers should lead to even faster growth, the company says.

It expects to see particularly strong growth from its recent signing of eBay.com, which announced earlier this week that it had joined Points.com to accept loyalty points from American Airlines under eBay`s new Anything Points program. EBay says it is also considering accepting points from other Points.com pointsxchange partners.

"We welcome this landmark relationship with an industry leader," says Points International CEO Rob MacLean. He adds that the inclusion of eBay marks a significant step for Points because it opens up a huge world of buying opportunities for consumers who redeem loyalty points.

Although Points.com has direct exchange agreements with about 30 partners, it`s able to support point exchanges with more than 600 loyalty programs through its agreement with GiftCertifcates.com and its Canadian counterpart, GiftCertificates.ca, Points says.

Points earns its revenue by charging consumers $5.95 to conduct a single exchange transaction, or $19.95 for an unlimited number of transactions for one year. It also keeps a percentage of the value of each exchange transaction. Points declines to specify that percentage, but says it`s nominal. It also offers special deals with its partners for bonus points.