Agoda and Mastercard have launched a travel redemption solution aimed at banks seeking to update their loyalty programmes. The arrangement integrates Agoda’s travel inventory into Mastercard’s Global Redemption Suite, allowing cardholders to redeem points directly for travel through participating bank programmes.

Banks connected to Mastercard’s rewards network can add the Agoda-powered solution to their existing loyalty platforms. The system allows points to be redeemed in real time and applied to bookings across Agoda’s accommodation and flight inventory. Banks retain their own branding, while cardholders can use points at the time of booking rather than converting them into vouchers or other intermediaries.

The companies said the partnership reflects broader changes in loyalty programmes, with a greater focus on partnerships and on rewards that can be used across services rather than fixed catalogues. By linking banks to Agoda’s inventory through Mastercard’s network, the programme is intended to give cardholders more options for how and when points are used.

Agoda noted the solution is designed to address low redemption rates in traditional loyalty schemes, where points often remain unused. Mastercard said the integration supports a shift towards digital loyalty tools that are embedded into everyday transactions rather than accessed separately.

Industry research cited by the companies points to increasing demand for travel-related rewards. The Skift State of Travel 2025 report found that travellers tend to join loyalty programmes for practical benefits such as discounted travel and simpler earning and redemption processes. Arrivia’s 2025 Loyalty Landscape Report said 84 per cent of loyalty programmes plan to expand travel benefits during the year, reflecting interest in experience-based rewards. The companies said the new solution is intended to support higher redemption rates and increased card usage.

The launch is focused on banks in Asia-Pacific but is positioned as part of Mastercard’s wider global loyalty infrastructure. Agoda operates as an online travel platform with accommodation and flight inventory in multiple markets.

Damien Pfirsch, chief commercial officer, Agoda said: “Across the industry, many loyalty points still go unused because customers don’t see enough real value or flexibility in how they redeem. By joining forces with Mastercard, we’re helping banks close that value gap with travel rewards that are immediate, intuitive, and genuinely useful.

“By embedding Agoda’s interfaces, technology, and global inventory into Mastercard’s solution, cardholders can use their points the way they want, on their timelines, while banks gain a simple, scalable way to modernise loyalty and drive deeper engagement.”

Matthew Driver, executive vice president, services, Asia Pacific, added: “We’re creating a connected ecosystem that delivers convenience and meaningful value at every touchpoint. Together, we’re shaping a future where loyalty is dynamic, data-driven, and seamlessly integrated into the moments that matter most.”