Microsoft Rewards: New Direct Usage Options Coming Soon

Microsoft is preparing to allow users to spend Microsoft Rewards points directly as a form of currency for purchasing digital goods and services across its ecosystem, marking a significant shift in how the loyalty program functions.

According to a preannouncement made by Microsoft in April 2026, the company plans to enable the direct use of Rewards points as currency in the Microsoft Store and other affiliated platforms, eliminating the need to redeem points for gift cards or promotional codes before making purchases. This change would streamline the redemption process, allowing users to apply their accumulated points at checkout much like a stored-value balance.

The Microsoft Rewards program, which has been active since 2016, currently lets users earn points through activities such as searching with Bing, completing quizzes, purchasing from the Microsoft Store, and engaging with select partner offers. These points can then be redeemed for a variety of rewards, including Xbox Game Pass subscriptions, Skype credit, gift cards for retailers like Amazon and Starbucks, and donations to nonprofit organizations.

Under the proposed update, points would no longer need to be converted into intermediate forms before use. Instead, users would see their Rewards balance as an available payment option during checkout, similar to how a Microsoft account balance or PayPal might appear. This would reduce friction in the user experience and potentially increase engagement with the program by making rewards feel more immediately usable.

Microsoft has not yet announced an exact rollout date for the feature, but internal testing is reportedly underway. The change aligns with broader efforts to unify the Microsoft ecosystem under a more seamless user experience, particularly as the company continues to integrate services like Windows, Xbox, Microsoft 365, and cloud offerings under a single identity framework.

Industry analysts note that making loyalty points directly spendable as currency could position Microsoft Rewards more competitively against similar programs from Apple, Google, and Amazon, which have long allowed users to apply store credit or points directly at purchase. Apple’s Apple Account balance, for example, can be funded through various means and used across the App Store, iCloud, and Apple Music without conversion.

Microsoft has emphasized that the Rewards program remains free to join and that earning methods will not change as part of this update. The company also stated that security measures, including fraud monitoring and point expiration policies, will continue to apply to ensure the integrity of the system.

While the feature has not yet been released to the general public, Microsoft typically uses its Insider programs to test new functionality before wider deployment. Users enrolled in the Microsoft Rewards program are encouraged to monitor official communications from the Microsoft Rewards website and the Microsoft Store blog for announcements regarding availability.