Banks are cutting rewards—but here’s the smart way to keep earning points

Australian banks are warning customers that rewards programs are shrinking and fees are set to rise.

Just as households brace for higher costs, a new contender has arrived with a bold offer.

Revolut has launched Australia’s first debit card rewards program, shaking up a market long dominated by banks.

Revolut Enters the Market Amid Banking Changes

While the Reserve Bank of Australia (RBA) prepared to ban card surcharges and slash interchange fees, global fintech Revolut rolled out its debit card rewards program in October 2025.

The timing highlighted a growing divide between traditional banks and new fintech players.

The RBA’s proposed changes, set to take effect from 1 July 2026, could save consumers $1.2 billion annually by eliminating card surcharges.

However, banks issuing cards stood to lose roughly $900 million in interchange revenue under the preferred reform package.

This financial squeeze had already seen traditional rewards programs shrink: pre-pandemic, cards like ANZ Rewards Black or NAB Qantas Rewards Premium offered up to 1.5 points per dollar on everyday spending; today, most sit around 0.5–1 point per dollar with stricter caps.

'We've seen in the market the banks are talking about reducing the value they offer to customers,' Revolut Australia CEO Matt Baxby told NewsWire. 'This is our opportunity to make loyalty available to all Australians.'

How Revolut’s Rewards Program Works

The concept is simple: earn 'Revpoints' on everyday spending with a debit card, without credit approval or debt risk.

Points could be redeemed for discounted flights with 10 partner airlines including Etihad, British Airways, and Turkish Airlines, or for accommodation and gift cards at retailers including Woolworths, Amazon, and Uber Eats.

Evaluating the Numbers

Revolut’s Standard account offered 0.06 points per dollar with no monthly fee, meaning 1,000 points required around $16,667 in spending.

The Metal account offered 0.33 points per dollar, requiring $3,030 to earn 1,000 points, but came with $348 annual fees.

Experts predicted that following the RBA’s changes in 2026, credit card rewards could decline further, similar to UK earn rates, often less than half of current Australian levels.

Safety Considerations

Revolut operated under AUSTRAC regulation and held an Australian Financial Services License, but was not a bank and lacked the government $250,000 deposit guarantee.

Funds sat in a trust account with an established Australian bank, segregated from Revolut’s corporate funds.

For everyday spending, this risk was lower, but the difference from traditional bank protections remained important to understand.

The Rewards Landscape and Future Outlook

Points inflation meant more points were required for the same redemptions.

Airlines, which sold points to banks, could raise redemption thresholds if banks reduced point purchases.

Qantas had already increased long-haul business-class redemptions from 108,600 to 130,100 points each way from August 2025.

Consumers were therefore advised to calculate monthly spending to determine if any Revolut tier offered value, check current credit card rewards, and consider using both Revolut and established banks strategically.

Key Takeaways

Households could save roughly $60 annually from scrapped surcharges, but faced rising credit card fees and dwindling rewards.

For tech-savvy users seeking alternatives, Revolut’s Standard account was free to try while maintaining existing banking relationships.

Yet, earning rates were modest, the program new, and it did not replace full banking services.

It was best seen as one tool in a diversified financial toolkit.

If you’re interested in understanding how rewards programs could change even further, there’s more to explore beyond debit card alternatives.

Some of the same pressures affecting traditional credit card rewards also shape the options available with new fintech solutions.

For a deeper look at potential impacts on points, perks, and fees, this next story provides a detailed analysis.

Read more: Credit card perks under threat as regulators eye changes to payment rules

What has been your experience with rewards programs—have they become less generous over the years, or are you ready to try a new approach with fintech alternatives?