Every reward in the Rewards Catalog has a type that determines what the customer receives and which incentive you can link in Step 3 of the reward creation flow.

Choosing the right Reward type

The 14 reward types fall into five natural groups based on how they deliver value:

• Direct value delivery — Coupon, Intouch reward, Gift card, Gift voucher, Cashback, Wallet offer, Miles, Physical reward. Use these when you want to put money, credits, codes, or goods directly in the customer's hands.
• Engagement and experience — Games, Auction, Sweepstakes. Use these when the goal is participation and excitement, not a guaranteed payout. The customer spends points for a chance to win, not a certainty.
• Automatic and transactional — Cart promotion, Card linked. Use these when you want the benefit to trigger automatically — no customer action beyond the qualifying transaction.
• Partner and external — Vendor only reward. Use these when rewards are fulfilled by third party merchants and the catalog can be used for the customers to view and redeem the reward.
• Social — Charity. Use this when your brand's program supports social impact and customers want to donate the reward rather than receive.

Auction

An auction reward allows customers to bid their loyalty points for the chance to win an exclusive, high-value reward. Auctions create excitement and drive engagement by adding a competitive element to redemption.

How it works: Customers place bids using their points during the auction window. When the auction closes, winners are selected as the highest bidders or by lottery from among the top bidders.

Best for: Limited-edition items, premium experiences, and VIP rewards where scarcity and exclusivity drive perceived value.

How it affects the reward configuration: Links to an Auction incentive in Step 3. The incentive must have a minimum bid amount, auction start and end dates, and number of winners configured before you can link it.

Example: Bid a minimum of 5,000 points for a chance to win a limited-edition watch. The top three bidders each win one.

Card linked

A card-linked reward is tied to a customer's specific payment card. The customer earns benefits automatically when they use their linked credit or debit card at participating stores — no code entry required.

How it works: The customer links their card in the loyalty app. Whenever they make a qualifying purchase with that card, the benefit (cash back, a discount, or points) is applied automatically.

Best for: Partnerships with banks or card issuers, driving spend at specific merchant locations, and seamless no-friction redemption.

How it affects the reward configuration: Links to a Card-linked offer incentive in Step 3. The incentive must specify the participating card network or issuer, qualifying merchant scope, and benefit rate before you can link it.

Example: Link your Visa card and earn 5% cashback on all restaurant purchases, credited back to your loyalty wallet.

Cart promotion

A cart promotion applies an automatic discount or benefit at checkout when the customer's cart meets the qualifying conditions — no code required.

How it works: The system checks the cart against the defined conditions and applies the discount if they're met. The cart total updates instantly.

Best for: Upsell incentives (spend ₹1,000, get ₹100 off), bundle deals (buy two, get one free), and event-based discounts.

How it affects the reward configuration: Links to a Cart promotion incentive in Step 3. The incentive must define cart qualifying conditions (minimum order value, eligible SKUs, or categories) and the discount to apply.

Example: Add two shirts to your cart and get 20% off automatically at checkout.

Cashback

A cashback reward returns a percentage or fixed amount of the purchase value to the customer — as loyalty points, a wallet balance, or a direct account refund, depending on your configuration.

How it works: After a qualifying transaction, the system calculates the cashback amount and credits it to the customer's account.

Best for: Ongoing spend incentives, high-transaction-frequency verticals such as grocery or fuel, and programs that mirror credit card cashback experiences.

How it affects the reward configuration: Links to a Cashback incentive in Step 3. The incentive must define the cashback percentage or fixed return amount and the qualifying transaction criteria.

Example: Shop for ₹1,000 and get ₹100 credited back to your loyalty wallet on your next visit.

Charity

A charity reward lets customers donate their loyalty points to a charitable cause of their choice. It strengthens emotional brand connection by aligning the program with social responsibility.

How it works: Customers choose a cause from the listed charity partners and select how many points to donate. The system converts the points and transfers the equivalent value to the charity.

Best for: Brands with a strong CSR identity, campaigns around social events, and customers who prefer social impact over personal rewards.

How it affects the reward configuration: Links to a Charity incentive in Step 3. The incentive must specify the charity partner name and the points-to-donation conversion rate.

Example: Donate 500 points to provide meals for underprivileged children through a partnered NGO.

Games

A game's reward gives customers access to an interactive game where they can win rewards. Common formats include spin-the-wheel, scratch cards, and skill-based challenges.

How it works: Customers spend their points (or receive a free play) to participate. The reward is determined by the game outcome, which can be fully randomized or weighted.

Best for: Gamification strategies, driving app engagement, surprise-and-delight moments, and campaigns targeting younger or digitally-engaged customer segments.

How it affects the reward configuration: Links to a Games incentive in Step 3. The incentive must define the game format (spin-the-wheel, scratch card, and so on), prize tier configuration, and win probability per prize.

Example: Use 100 points to spin the wheel daily for a chance to win between 50 and 500 bonus points.

Gift card

A gift card is a prepaid card with stored value that customers use at your brand's stores or with partner merchants. Gift cards are physical or digital and available in customizable denominations.

How it works: The customer redeems their points (or pays cash) for a gift card of the chosen denomination. The card value is available immediately upon issuance.

Best for: Partner merchant incentives such as Amazon or Flipkart, flexible redemption that customers use anytime, and high-value rewards for top-tier members.

How it affects the reward configuration: Links to a Gift card incentive in Step 3. The incentive must specify the card denomination, issuing partner, and delivery channel (email or SMS).

Example: Redeem 2,000 points for a ₹1,000 Amazon gift card delivered to your registered email.

Gift voucher

A gift voucher is redeemable for a specific product, service, or experience. Unlike a gift card, a voucher has a predefined and limited set of redemption options.

How it works: The customer receives a voucher code or physical voucher that they use at participating locations or for the specified item or service.

Best for: Partner offers such as free meals, spa treatments, or movie tickets; experience-based rewards; and scenarios where the reward is tied to a specific product or event.

How it affects the reward configuration: Links to a Gift voucher incentive in Step 3. The incentive must specify the product, service, or experience covered; the list of participating outlets; and the voucher's own validity period.

Example: Use 800 points to get a voucher for a free pizza at participating outlets, valid for 30 days.

Miles

A miles reward lets customers convert their loyalty points into travel miles with a partner airline or travel program. Earned miles can be redeemed for flights, upgrades, or other travel services.

How it works: The customer selects the miles reward and specifies how many points to convert. The equivalent miles are credited to their linked airline or travel account.

Best for: Travel-oriented brands, co-branded airline partnerships, and loyalty programs targeting frequent travelers.

How it affects the reward configuration: Links to a Miles incentive in Step 3. The incentive must specify the conversion rate (how many loyalty points equal how many miles) and the partner airline or travel program.

Example: Convert 10,000 loyalty points into 5,000 airline miles with a partner carrier, redeemable for your next flight.

Physical reward

A physical reward ships a tangible product — such as merchandise, electronics, or branded items — directly to the customer.

How it works: The customer redeems the reward and provides a delivery address. The order routes to your fulfilment system, and the item ships. Use Fulfilment status settings to define and track delivery states that customers see in their order history.

Best for: High-value redemption catalog items, branded merchandise programs, and exclusive rewards for top-tier members.

How it affects the reward configuration: Links to a Physical reward incentive in Step 3. The incentive must specify the product name, SKU, available inventory count, and fulfilment routing details.

Example: Redeem 3,000 points for a pair of branded wireless headphones delivered to your address within 5–7 working days.

Sweepstakes

A sweepstakes reward enters eligible customers into a prize draw for the chance to win a high-value reward. Winners are selected randomly at the end of the sweepstakes period.

How it works: Customers redeem points (or qualify through a transaction) to receive entries into the draw. More entries increase their chances of winning.

Best for: Creating excitement around campaigns, driving transaction frequency (more purchases = more entries), and building buzz around high-value prizes.

How it affects the reward configuration: Links to a Sweepstake incentive in Step 3. The incentive must specify the prize description, total number of entries available, draw date, and winner selection method (random draw or top entries).

Example: Every 100 points spent earns you one entry into the sweepstakes to win a new smartphone. The winner is announced at the end of the month.

Vendor only reward

A vendor-only reward is managed, fulfilled, and delivered entirely by a third-party vendor. The Rewards Catalog lists the reward, but the actual redemption and delivery happen outside the platform through vendor APIs.

How it works: When a customer redeems the reward, the platform sends the redemption request to the vendor's system via API. The vendor processes and fulfils the reward independently.

Best for: Marketplace-style reward catalogs, partner integrations such as movie tickets or travel packages, and scenarios where Capillary acts as the catalog layer over external fulfilment systems.

How it affects the reward configuration: Links to a Vendor-only reward incentive in Step 3. The incentive must define the vendor's external reward definition and the API endpoint that receives the redemption request.

Example: Redeem 1,500 points for movie tickets through a BookMyShow integration. Tickets are delivered via SMS from BookMyShow's system.

Coupon

A coupon reward issues a digital or physical discount code that customers apply at checkout, online, or in-store to get the configured discount on specific products, categories, or order values.

How it works: When a customer redeems this reward, they receive a coupon code they apply at checkout to get the configured discount.

Offer types:

Best for: Category-specific discounts, seasonal promotions, first-time purchase incentives, and any scenario where customers apply a code at checkout.

How it affects the reward configuration: Links to a coupon incentive in Step 3. The incentive must specify the discount value or percentage, applicable products or categories, and code generation method. After linking, the offer type and issue limits fields unlock in Step 3, letting you configure how codes are distributed and cap the total number of issues per customer or across the series.

Example: Use code SAVE20 for 20% off on electronics, valid until the end of the month.

Wallet offer

A wallet offers a digital wallet balance that the customer uses for future purchases across your brand's products and services. Wallet credits are available immediately upon issuance.

How it works: The customer redeems their points for a wallet credit. The balance is added to their digital wallet and applied at checkout on any future qualifying transaction.

Best for: Brands with a digital wallet or in-app payment system, driving repeat visits, and rewarding customers with immediate, flexible spending power.

How it affects the reward configuration: Links to a Cash wallet incentive in Step 3. The incentive must specify the wallet credit amount and the qualifying stores or transaction types where the credit applies.

Example: Redeem 1,000 points for ₹500 in wallet credits, available to use on your next purchase in any store or on the app.