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 points from credit cards? – January 2021 update
If you are looking to apply for a new credit or charge card, here are our January 2021 recommendations based on the current sign-up bonus.
British Airways American Express
5,000 Avios for signing up, no annual fee and a companion voucher for spending £20,000 Read our full review
British Airways American Express Premium Plus
25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review
The Platinum Card from American Express
30,000 points and an unbeatable set of travel benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
15,000 points bonus and the most generous non-Amex for day to day spending Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these:
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
American Express Business Platinum
40,000 points sign-up bonus and a long list of travel benefits Read our full review
British Airways Accelerating Business American Express
Earn both Avios and BA On Business points with your business spending Read our full review
Capital On Tap Business Rewards Visa
The most generous Avios Visa or Mastercard for a limited company Read our full review
Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history. By recommending credit cards on this site, I am – technically – acting as a credit broker. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as a credit broker.