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Samsung Rewards, a loyalty program that rewards users proportionally for how frequently they use Samsung Pay or engage with other Samsung features, has seen significant success in its first year on the market.

To mark that success, Samsung Rewards is hosting an instant-win opportunity for participants, which will run through December 31 and count 1 million winners.

Samsung Rewards, which works across Samsung platforms including Bixby, Health, and Pay, is performing well. The program has seen 25% growth on a monthly basis, which is massive — for context, 1 million new users joined this week alone in the US. That gives the wallet access to millions of active users in its seven global markets, and should prepare it for wider success as Samsung pursues "aggressive expansion" this fall.

But the impact Rewards has had on mobile wallet Samsung Pay is the most fascinating. Mobile wallet adoption in the US has been stagnant across the board, but Samsung Pay is growing well in comparison. That's largely due to Rewards, which has contributed to 49% of Samsung Pay's growth since it launched, and has helped provide a "significant increase" in Pay's adoption and engagement, according to Samsung GM Nana Murugesan. This gives us a few insights:

Samsung Rewards is what distinguishes the mobile wallet from its competitors. Samsung Rewards is a tiered system, rewarding users proportionally depending on how often they spend with the wallet. That's encouraged repeat purchasing — the wallet sees 1.3 monthly transactions per card on average, nearly double its closest competitors' numbers. That doubles down on Samsung Pay's other advantages, including its wider acceptance network — the payment method is accepted at any terminal that takes magnetic stripe cards, not just at newer NFC-based terminals.

Samsung Rewards is a tiered system, rewarding users proportionally depending on how often they spend with the wallet. That's encouraged repeat purchasing — the wallet sees 1.3 monthly transactions per card on average, nearly double its closest competitors' numbers. That doubles down on Samsung Pay's other advantages, including its wider acceptance network — the payment method is accepted at any terminal that takes magnetic stripe cards, not just at newer NFC-based terminals. And it’s another example of the power of rewards programs. Good rewards programs can positively influence consumer spending, according to an Excentus study. That extends to mobile wallets, especially since Samsung's rewards, which can be redeemed for Samsung products or gift cards, likely layer on top of other issuer- or merchant-based rewards programs, which can further encourage spending.

Ayoub Aouad, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed credit card rewards explainer that:

Identifies the costs associated with offering rewards for issuers and how they have increased over time.

Details why credit card issuers continue offering high-valued rewards.

Analyzes how the industry has evolved since 2011

Explores how credit card issuers will advance in order to continue reaping the benefits of offering rewards without assuming increased costs.

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