Expanded Redemption Options
Coles Supermarkets has officially overhauled its Flybuys rewards program, introducing a ‘pay with points’ feature that allows customers to redeem points for significant discounts on their grocery bills. As of July 14, 2026, members can apply discounts of $10, $20, $30, $50, $70, or $100 to their total purchase, a substantial increase from the previous $10 limit per transaction.
Michael Courtney, Coles’ Chief Customer Experience Officer, stated that the move is designed to provide practical savings for shoppers during a period of high cost-of-living pressures. ‘It makes it easier to use the points they have already earned for money off their in-store shop, instantly at the checkout,’ Courtney said.
Stakes in the Loyalty Market
The update arrives as Coles attempts to reclaim its standing in the Australian retail loyalty landscape. The Flybuys program, which boasts over 10.5 million members, has recently faced increased pressure from competing services, notably the paid OnePass subscription. OnePass, which provides benefits across retailers including Kmart, Target, and Bunnings, recently overtook Flybuys in Canstar’s industry rankings, ending a three-year streak for the supermarket loyalty leader.
Flybuys CEO Anna Lee emphasized that the new flexibility is tailored to the needs of millions of members who have accumulated significant point balances. The roll-out is scheduled to expand further, with selected Liquorland stores set to implement the ‘pay with points’ functionality starting August 19.
Industry analysts note that while 47 percent of surveyed consumers already use supermarket rewards, the ability to cash in larger amounts at once may influence spending behavior, particularly as shoppers increasingly seek immediate relief at the register rather than waiting for annual redemption windows.