TD Bank Lets Cardholders Redeem Points on Amazon Purchases

TD Bank is offering cardholders a way to use rewards points when shopping with Amazon.

The bank announced Wednesday (Nov. 19) that it now offers Amazon Shop with Points in the U.S. for TD credit cardholders, letting customers redeem their points instantly at checkout on Amazon.com, to turn purchases into “meaningful and easily redeemed” rewards.

“We’re thrilled to bring Amazon Shop with Points to our U.S. customers in time for the holidays,” Chris Fred, TD’s head of U.S. credit cards and unsecured lending, said in a news release.

“We consistently hear cardholders say that ease of redemption is important to them, and we hope this helps to take some of the stress out of the holiday season by making reward redemption as frictionless as possible.”

According to the release, the program covers TD’s TD Cash, TD Cash Secured, TD Double Up, TD Business Solutions and TD First Class cards. Cardholders now get the option to pay for eligible purchases with some or all of their TD Rewards points.

“Customers will be able to both earn and use rewards as they are doing their holiday shopping this year,” said Fred.

Research by PYMNTS Intelligence has found that nearly half (48%) of credit cardholders point to rewards or discounts as the main reason they chose the card they use the most.

For Gen Z and millennials, this percentage is more notable, considering how much they rely on their top-of-wallet cards. Generation Z shoppers use an average 30% of their available credit on their chief card, with millennials saying they use 27%.

“Compare that to older generations, who spread their spending across multiple cards or lean more on debit and checking accounts,” PYMNTS wrote earlier this year. “For financial institutions and FinTechs, this presents an opportunity to deliver smarter, targeted rewards to not just gain customers but, potentially, lifetime advocates.”

PYMNTS reported earlier this week on additional research showing that 26.2% of consumers without an active credit card say that building or improving their credit score is the top reason they want one.

“That same desire to optimize scores now animates how cardholders think about credit limits. Of those who requested a higher limit, 52% did so to gain financial flexibility, 39% did so to improve their credit scores and 29% were prepping for a large purchase,” that report said.

“Consumers appear to view expanding existing card capacity as a more attainable strategy than opening new accounts in a tightening environment.”