A new look Qantas Pay has launched, with the national carrier saying it offers more value and benefits for members, and from today it is offering 1,000 bonus points to new cardholders when they load and spend AU$100.
Members will now earn 1 Qantas Point for every Australian dollar loaded in foreign currency, in addition to earning 1 Qantas Point for every Australian dollar spent overseas, just in time for the European travel period. Members can earn 1 Qantas Point for every $4 spent in Australia and an improved 1.25 Qantas Points earned per $1 spent on Qantas flights, Qantas Marketplace, and Qantas Wine. Qantas Travel Money, first known as Qantas Cash back in 2013, transitioned into Qantas Pay from 21 May last year.
Other new features include a new Qantas Pay app which allows members to easily load funds, track their spending and points earnings, and securely manage their money while on the go, with the convenience of Apple Pay and Google Pay integration.
Qantas Loyalty CEO Andrew Glance noted the significant uptake in the Qantas Pay product and anticipates the relaunch will further accelerate this trend, with a Qantas Pay transaction currently being made every three seconds.
“Qantas Pay provides members with a fantastic way to earn Qantas Points wherever they are and significantly expands the opportunities for members to earn when travelling. This product will be of particular interest to those whose payment preferences continue to evolve,” Glance said.
“Credit cards continue to be a hugely popular way to earn, with around a third of all spend in Australia on a Qantas Points earning credit card. These enhancements to Qantas Pay are about offering our members more ways to be rewarded, coupled with no transaction or account fees. It also offers a fantastic entry point for younger members, including those between 16 and 18, to start earning Qantas Points on their everyday transactions.”
Qantas Pay allows users to load and lock in up to 10 foreign currencies and spend in 190 countries where Mastercard is accepted, all without account or currency conversion fees. The range of available currencies will continue to expand, with Indonesian Rupiah, Fijian Dollars, South African Rand and Swiss Francs set for inclusion in the coming months.
App users can also look forward to exclusive Qantas Pay weekly points offers delivered directly within the app.
What’s the pitch
Qantas Pay is pitched as more than just a travel card. It’s a way for the airline to capture a bigger share of domestic spend and engage with customers who might not qualify for or want a credit card, The Champagne Mile’s Adele Eliseo said.
“The product is clearly designed to bring younger members into the program. It lowers the barrier to entry and helps Qantas build early engagement with a new demographic,” she said.
“By removing the need for a credit product, Qantas is tapping into those who want to use their own money for purchases.”
As for the foreign exchange rate and value Eliseo said Qantas Pay doesn’t charge an obvious conversion fee, but a margin is built into the exchange rate which makes it harder to spot.
“The difference can be significant, especially on larger loads,” she said.
As with any financial product tied to points earning, it’s important to crunch the numbers, Eliseo advised.
“The points earn might feel like a win, but it only makes sense if the value is higher than the cost outlay.”
As for points earning, there’s potential to get ahead if you’re regularly spending on Qantas linked products, but outside those categories, the points earn is relatively modest.
For domestic use, the effective earn rate of 0.25 points per dollar means you’d need to spend a fair amount to build a noticeable balance.
“While the earn rate isn’t likely to appeal to seasoned flyers, it opens the door for younger users or those avoiding credit to engage with Qantas Frequent Flyer through everyday spend,” Eliseo said.
Qantas Pay prize to entice sign-up
All Qantas Pay cardholders have an opportunity to win the ultimate trip for two to Italy, including business flights and accommodation.
All Qantas Pay cardholders who load and spend will also go into the weekly draw to win one of 10 prizes of AU$1,000 loaded directly onto their Qantas Pay card. Every time members load funds or make a purchase with their card, they gain more entries into the draw.
Key features of Qantas Pay
• Earn 1 Qantas Point per AU$1 loaded in foreign currency.
• Earn 1 Qantas Point per AU$1 spent overseas.
• Earn 1 Qantas Point per $4 spent in Australia.
• Earn 1.25 Qantas Points per $1 spent on Qantas flights, Marketplace, and Wine.
• No account or foreign transaction fees.
• Load and spend in up to 10 foreign currencies.
• Spend in over 190 countries, wherever Mastercard is accepted.
• Instant load functionality.
• Exclusive Qantas Pay Card offers available via the new Qantas Pay app.
• New Qantas Pay app for easy money and points earn management.
• Apple Pay and Google Pay integration for convenient payments.
