In a volatile, tariff-disrupted market with pressured consumer spending and declining sales, companies are rethinking how to diversify and grow revenue – placing renewed focus on paid subscriptions within loyalty programmes. Many operators are driving growth by elevating their loyalty propositions to improve member retention and repeat demand and stand out in a saturated market. This also helps unlock new opportunities with new partners and to scale business reach.
The appeal of paid subscriptions: What drives consumer choice?
Paid loyalty subscriptions involve an upfront financial commitment, typically leading to higher spending, deeper engagement and more frequent usage – driving increased revenue for businesses. Because paid membership growth closely aligns with stronger customer loyalty, it unlocks significant potential for gross merchandise value (GMV) growth, making this model highly appealing to market players to capture consumers’ online shopping spend.
In 2025, consumer preferences are clearly evolving, with the top motivators for subscribing being the ability to earn more points, access higher-value discounts and benefit from unlimited delivery. These preferences highlight a growing demand for added value, meaningful perks and savings and convenience in loyalty programmes. According to the Euromonitor Voice of the Consumer: Loyalty Survey, fielded March to April 2025 (n=7,507), India (76%), the United Arab Emirates (68%), Brazil (60%), Mexico (57%) and China (55%) rank as the top five countries worldwide with the highest share of respondents paying for loyalty subscriptions. Meanwhile, in 2025, the US is set to lead average loyalty spend per capita in the grocery and supermarket sector across 20 key countries, reaching USD6,120 – a result of higher consumer incomes, well-established loyalty programmes, sophisticated retail infrastructure and deeper consumer engagement.
- Duopoly at the core: The battle for loyalty supremacy
Amazon Prime and Walmart+ dominate the paid subscription market, with the US as their primary battleground, each firmly carving out a distinct niche. Amazon Prime drives value through fast shipping, entertainment and an expanding bundle of retail offerings and also services (eg Amazon Video, free access to Grubhub+), while Walmart+ focuses primarily on discretionary offerings like groceries, fuel discounts, free pharmacy deliveries and exclusive essentials – although also broadening its appeal with complimentary Paramount+ subscriptions. All that helping to solidify their unique value propositions for different consumer segments.
Amazon Prime and Walmart+ have positioned subscription pricing as an important battleground, charging USD139 and USD98 annually, respectively, with the real race centred on who offers more value per loyalty dollar. Earlier in 2025, Walmart reported that digital spending by Walmart+ members jumped by 50%+ in 2024, with pick-up and delivery emerging as key drivers of member acquisition – highlighting the programme’s rising profitability and strategic importance to the company’s balance sheet. Amazon Prime, on the other hand, surpassing 214 million members in 2024, reported an 11% year-over-year increase in subscription services revenue in Q1 2025. Euromonitor International’s Loyalty Competitor Tracker shows Amazon leading with an Engagement index of 125 in Q1 2025, followed by Walmart at 117 – both exceeding the baseline of 100. This underscores their strength in driving strong consumer engagement, even without prominently positioning loyalty in their corporate or investor messaging in that quarter.
- Can Target compete with the subscription titans?
Revamped in 2024, Target Circle 360 – Target’s paid subscription – now includes free same-day delivery from over 100 retailers without additional fees, featuring extended returns and exclusive perks, powered by its strategic tie-up with Shipt. The company announced in 2025 that the new offering drove a 36% surge in same-day deliveries, attracted 13 million new members and delivered strong gains in both loyalty and revenue during 2024. Yet with a USD99 annual fee and fewer exclusive benefits compared to its rivals, its value proposition remains less differentiated in this competitive landscape.
Similarly, the CAGR of global monthly active users (MAUs) over 2023-2025, according to Apptopia, varied significantly across the three players: Amazon at 11%, Walmart at 8%, and Target leading with 16%. Target’s growth, in particular, signals strong customer retention and satisfaction, as users continue to engage consistently over time aided by its retail media arm as well.
What is next?
As AI and agentic commerce reshape the landscape, hyper-personalisation will transform paid subscriptions, intensifying competition, sharpening differentiation and redefining consumer value. These technologies enable real-time reward personalisation and churn prediction, helping brands tailor offers, pricing and messaging at scale.
Read New Concepts in Loyalty to learn how brands build stronger customer relationships in a competitive landscape.