Almost half of all UK credit card holders (46 per cent) now participate in a reward scheme, while zero per cent deals seem to be all but vanishing from the market.

Despite the rise in popularity however, consumers are still not taking full advantage according to the survey, with only 32 per cent of loyalty scheme participants redeeming their points.

“Credit card reward schemes can be a great way for cardholders to be rewarded for everyday spending,” says Morgan Stanley Consumer Banking’s marketing director Patrick Muir, “but there is no point in having one if customers do not redeem their points.

“Savvy spenders should consider how useful the rewards actually are and how easy they are to redeem.”

Despite the rise in demand for loyalty schemes, a good deal of credit card companies are either downsizing or even stopping their schemes altogether. Morgan Stanley reports that eight credit card providers have reduced their schemes in the last 14 months.

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