Coles Launches New Flybuys Pay With Points Option, Letting Shoppers Slash Up to $100 Off Grocery Bill

Coles has overhauled the way customers can redeem Flybuys points in store, launching a new "pay with points" feature that lets shoppers take up to $100 off their grocery bill in a single transaction, as the supermarket giant intensifies its loyalty program rivalry with Woolworths.

The change, which rolled out nationally on Tuesday, replaces the previous system that limited Flybuys members to a flat $10 off per shop once they had accumulated 2,000 points. Under the new structure, members can redeem points for $10, $20, $30, $50, $70 or $100 off their total shop instantly at the checkout, with the available discount depending on their points balance and the size of their transaction.

To qualify, Flybuys members need a minimum of 2,000 points in their account when shopping in store at Coles supermarkets. The more points a member has banked, and the larger their shop, the higher the potential discount they can unlock at checkout.

How It Works

Using the new feature is designed to be straightforward. Members first need to set their reward preferences to "pay with points" through the Flybuys app or website. From there, they simply shop in store at a Coles supermarket, scan their Flybuys card at checkout, and select an available dollar amount to redeem based on their points balance and total spend. The discount is applied instantly, reducing the amount owed at the register.

Coles said pay with points will also expand beyond its supermarkets, with the option becoming available in selected Liquorland stores nationally from Wednesday, August 19, giving members another avenue to put their points toward everyday purchases.

Coles Ups the Ante on Woolworths

The overhaul marks a notable shift in the competitive dynamic between Australia's two dominant supermarket chains. Previously, Coles' $10 cap on Flybuys redemptions mirrored Woolworths' own points system, which similarly limits members to $10 off per shop, though Woolworths also offers a "Bank for Christmas" option allowing customers to hold onto points until a redemption period at the end of the year.

By expanding the redemption ceiling tenfold, Coles is positioning Flybuys as offering greater flexibility and higher-value savings than its rival's equivalent program, particularly for loyal, high-spending customers who have accumulated larger points balances over time.

Coles Chief Customer Experience Officer Michael Courtney said the change was designed to give shoppers more choice and more value when they shop in person.

"Our customers are looking for practical ways to save and pay with points makes it easier to use the points they have already earned for money off their in-store shop, instantly at the checkout," Courtney said. "For customers with points sitting in their Flybuys account, this is a simple way to unlock more value and those points can now help pay for more of the weekly shop."

Flybuys Chief Executive Officer Anna Lee echoed that sentiment, framing the update as a response to shifting customer priorities amid ongoing cost-of-living pressures.

"We know value and flexibility matter more than ever to our members and pay with points makes it easier for them to turn points into money off their in store shop when they need it," Lee said.

A Program With Millions of Members

Flybuys, the loyalty program jointly owned by Coles and Wesfarmers, has more than 10.5 million members across Australia, making it one of the country's largest customer loyalty schemes. According to Coles, nearly half of those members used the previous instant $10 redemption option over the past 12 months, while more than half of members who shopped in store at Coles during that period received upwards of $40 off collectively at checkout through repeated $10 redemptions.

Those figures suggest a significant portion of the customer base regularly engages with the points-redemption system, a trend Coles appears to be betting will only grow now that the potential payoff has increased substantially.

What It Means for Shoppers

For everyday shoppers, the practical impact will vary depending on how frequently they shop at Coles and how quickly they accumulate points through everyday spending. Members who have historically capped out at the old $10 threshold may now find it worthwhile to hold onto points for larger shops in order to unlock bigger discounts, rather than redeeming smaller amounts more frequently.

The move also comes as Australian households continue to navigate elevated grocery costs, with both major supermarket chains under sustained public and political scrutiny over pricing practices and profit margins. Enhancements to loyalty programs have increasingly become a key battleground in that broader competition, as both Coles and Woolworths look for ways to demonstrate value to cost-conscious customers without necessarily lowering shelf prices across the board.

Coles has not indicated whether further changes to the Flybuys program are planned, but the scale of Tuesday's rollout — spanning supermarkets nationally from day one, with Liquorland to follow next month — suggests the company is treating the update as a significant piece of its broader customer retention strategy heading into the second half of the year.

Flybuys members can check their current points balance and update their reward preferences through the Flybuys app or website ahead of their next shop to take advantage of the new redemption options.