Major loyalty scheme FlyBuys will come to an end later this year.

The scheme allows customers to redeem points for items in its loyalty shop, get petrol discounts and convert their points into New World Dollars.

The programme, has been running since 1996 and has about 1.8 million active Flybuys members.

"We're incredibly proud of what Flybuys has achieved over the past 28 years. It's been a privilege to be a part of so many New Zealanders' lives, helping them save money and enjoy rewards from their favourite brands," says Lizzy Ryley, chief executive of Loyalty NZ which runs Flybuys.  

"The landscape for loyalty programmes has changed, and continues to change rapidly, with businesses now having greater access to technology and capabilities that enable them to create their own highly tailored proprietary loyalty programmes.

"The Flybuys model of a services and retailer alliance has run its course, so will close at the end of this year."

Flybuys members will be able to earn points up until 11.59pm on October 31 and will have until 11.59pm on December 31, 2024, to redeem them.

Lizzy says they want to give their customers as much notice as possible to redeem their points.

"Flybuys would like to thank the millions of New Zealanders who have embraced the programme. We are hugely grateful for the support we have received from Kiwis over the past 28 years."

Alongside Flybuys, Loyalty New Zealand, the company that administers Flybuys, would also close.

IAG New Zealand had agreed to acquire some of Loyalty New Zealand's assets and would also be making offers of employment to approximately one-third of Loyalty New Zealand's staff.

About 130 people work for Loyalty NZ.

IAG New Zealand intends to harness the underlying technology and capability of Loyalty New Zealand's people to enhance its own business transformation activities.

-RNZ.