Amazon and American Express have launched ‘pay with points’ in the UK, a feature which has been available in the USA for some time.
It is a very simple arrangement:
When you come to pay for any future purchase on Amazon, Amazon will give you the option of using Membership Rewards points for payment
You will receive £4.50 for every 1,000 points redeemed
The good news is that it couldn’t be easier.
(That said, some products are excluded – digital goods (i.e.: MP3s), digital gift certificates (via email and print-at-home), Kindle eBooks and downloads, Subscribe and Save items)
The bad news is that you are not getting the best value for your points.
Let’s compare this with a few other options from the UK Membership Rewards catalogue:
Gift cards for Harrods, M&S, Starbucks etc – 0.5p per point
Gift cards for East Coast Trains – 0.6p per point
Avios or other airline miles – 0.75p – 1p if you use them well
Hotel points – 0.6p – 1p on my valuations depending on scheme (I rate Carlson points the highest)
The 0.45p value you get from Amazon is the same value you get from Tripflex, which is when you use your points to pay off travel charges on your statement. It is still a better deal than using your points for general Amex statement credit which only gets you 0.4p.
So, overall, this is not a blockbuster deal. It is a quick and simple way to use your points, though, and that may be enough for some people.
(Want to earn more miles and points from credit cards? Click here to visit our ‘Credit Cards Update’ page or use the link in the menu bar at the top of the page.)