There was a time when loyalty was rewarded for free. Buy a coffee, collect a stamp. Shop often, unlock a discount. Brands encouraged repeat purchase with incremental value at no additional cost. In 2026, that equation is shifting. Across food delivery, ecommerce, beauty, mobility and fashion, loyalty increasingly comes with a fee. The premise is direct: if customers want access to premium benefits, they must subscribe to them. From Zomato Gold 3.0 and BigBasket+ to tiered fashion privileges and curated coffee clubs, the model is spreading across sectors. What was once a retention tactic is now positioned as a standalone product.
The shift is rooted in economics as much as behaviour. Customer Acquisition Cost (CAC) has risen sharply across digital categories, according to multiple industry reports. Consumers compare prices across platforms, switch brands with minimal friction, and expect near-instant fulfilment. Discount-led retention, once an easy lever, has begun to strain margins. In several categories, persistent promotional pricing has reset consumer expectations without necessarily improving long-term loyalty. Utkarsh Sinha, Head of Growth, DriveU, says, “Free loyalty has become baseline hygiene, so its perceived value is close to zero. Paid memberships, on the other hand, behave like a product with a clear promise and P&L.” In this framing, the membership fee is not merely incremental revenue; it funds tangible benefits while creating a predictable revenue stream and signalling intent. The behavioural layer is equally significant. When customers pay, they are more likely to engage consistently with the brand to extract value. “Because they’ve paid, customers are more invested, show higher recall, and are more likely to default to the brand in their consideration set,” adds Sinha. The sunk cost principle, long studied in behavioural economics, is now actively built into brand retention strategies.
For younger, digitally native consumers, paid access models are not unusual. Subscription ecosystems, early access drops and priority services have shaped purchase behaviour over the last decade. Ahmed Aftab Naqvi, Global CEO and Co-founder, Gozoop Group, believes the shift is cultural as much as commercial. “For a generation that grew up with waitlists, early access, and Prime culture, exclusivity is a part of their purchase behaviour. What looks like a revenue move is actually a relevance move. Brands are monetising loyalty only because customers are seeking exclusivity and convenience,” he says.
According to Naqvi, resistance is not to payment itself but to weak value propositions. “Customers are not necessarily price conscious, but definitely value conscious. They will pay when the value is real.” As more brands layer memberships into their ecosystems, the risk of fatigue remains. Overlapping subscriptions, limited differentiation and incremental price increases could dilute perceived value. “People don’t get tired of memberships. They get tired of memberships that don’t make their life easier,” Naqvi adds.
While many programmes foreground faster delivery, priority access or financial savings, some brands argue that loyalty cannot be reduced to transactional benefits alone. Adrit Mishra, COO, Tata Starbucks, says, “At TATA Starbucks, we recognise that customers today seek everyday convenience, meaningful value and a sense of belonging to the brands they connect with. Our Rewards programme is built keeping in mind holistic value exchange that enriches the signature Starbucks experience every time a customer interacts with us.” The Starbucks Rewards programme leans heavily on personalisation and experiential value, including birthday benefits, early previews and curated events. “As loyalty continues to evolve across the industry, what remains constant is the importance of emotional connection,” Mishra says. “Our focus is to create moments that feel personalised and exclusive, ensuring every member feels that Starbucks is their signature Third Place a space that truly celebrates them.” In fashion retail, a similar recalibration is underway.
Umashan Naidoo, Head Customer and Beauty, Trent Ltd, says, “Traditional loyalty programs often feel transactional and outdated, especially when they revolve solely around points, discounts, or predictable rewards. At Westside, we believe loyalty is built far beyond that.” He adds, “Our focus has been on creating moments of delight that are intangible, unexpected, and emotionally resonant. For us, retention is not about accumulating points; it is about building lasting emotional bonds.”
Paid programmes fundamentally alter the brand–consumer contract. Loyalty shifts from a reward mechanism to a paid service layer. For brands, the upside includes reduced dependence on blanket discounting, predictable recurring revenue, higher engagement among paying members, better first-party data capture and improved retention metrics. For consumers, expectations are clearer. A membership fee creates an implicit performance benchmark and the programme must deliver measurable, evolving value.
Sinha notes that the emotional bond does not emerge automatically from payment. “If perks are refreshed over time and move beyond discounts (priority service, faster support, recognition), the program feels like a relationship, not just a deal,” he says. As membership models scale, certain fault lines are becoming visible: sudden price increases without incremental value, reduction in previously promised benefits, hidden conditions and overlapping memberships within the same category. What appears to work is evolving, non-static benefits, priority service, clear recognition and experiential rewards that feel considered rather than mechanical.
The broader question is not whether Indian consumers are willing to pay for loyalty. Evidence suggests many already are. The sharper question is whether brands can sustain emotional credibility once belonging becomes monetised. In this environment, loyalty is no longer a free add-on. It is a paid layer of the brand experience. And once customers have subscribed, brands must earn that loyalty again, this time in full view of the balance sheet.
