Amex and Zynga Launch Brave New World of Virtual Rewards

Unlike traditional rewards programs in which cardholders trade points for cash, airline miles, gift cards, or other rewards, the new pairing will allow cardholders to use rewards points to purchase virtual goods in online games like Farmville.

American Express marks the first time that virtual goods are available for purchase with rewards points and reinforces our commitment to offer consumers meaningful experiences that enhance their game play,” said Vishal Makhijani, Zynga’s business operations SVP. “Cardmembers can instantly redeem their reward points to purchase limited edition virtual goods.
Rewards are virtual objects to spruce up your online farm or cafe: a purple cow, for instance, or a Café World Amex Lightning Stove. The “cost” ranges from 200 points into thousands of points. Users can also earn game cards that have a monetary value—$2 for 200 points up to $50 for 5000—and use them to buy virtual goods with in-game credit, too. Because the “cost” of the virtual goods is relatively low, cardholders can redeem their points for a far greater number of cyber goods.
Although Zynga has already begun expanding their business by partnering with 7/11 to sell gift cards to their online store. In another recent joint venture, it may seem unlikely that a luxury brand like Amex would team up with a young and distinctively non-elitist company like Zynga, but the numbers pack some punch: 225 million people play Zynga’s games every month. Additionally, the demographics of the two companies overlap: most Amex holders are women, and many Zynga customers are older women as well as mothers of children playing Zynga games.