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LoyaltySeptember 2026

The Hidden Economics of Loyalty

Breakage assumptions embedded in loyalty liability models are under pressure as redemption rates climb and point currencies mature, forcing issuers and co-brand partners to revisit the actuarial foundations that underpin program economics. Processors and network operators who treat loyalty as a marketing line item rather than a structured financial liability are now exposed to material balance-sheet misalignment as those assumptions prove optimistic.

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