Iceland scraps Bonus Card in favour of a fully digital rewards scheme

Iceland has confirmed it is scrapping its long-running Bonus Card and moving customers onto a fully digital loyalty scheme called the Bonus Club.

The new programme launches on 26 August and will be rolled out across stores and online. Instead of simply loading money onto a plastic card, members will earn £1 back for every £20 spent, enjoy free delivery on orders over £40, and get access to discounts on more than 500 everyday items.

To encourage sign-ups, Iceland is offering a £5 welcome credit to new customers. In comparison, existing Bonus Card holders will automatically receive a £2 thank-you credit if they activate the app between August 26 and September 1.

Shoppers will need to download the Iceland app or register online to access the new offers. However, the retailer states that anyone without a smartphone can still join by linking their account to their phone number in-store.

Richard Walker, Executive Chairman of Iceland Foods, said, “We’re evolving our Bonus Card into the new Bonus Club, bringing more value, more benefits and even more reasons to shop with us. What better way to celebrate than by going big with our Mega Deals Event?”

The timing is no coincidence. Food inflation has eased from last year’s highs, but prices for many frozen and packaged goods remain stubbornly elevated.

By replacing the paper card with a digital set-up, Iceland can issue weekly personalised offers as well as run “mega events” on bulk buys, something the old system couldn’t manage.

Iceland’s shake-up also puts it more directly in line with other big supermarkets. Tesco’s Clubcard already gives members exclusive “Clubcard Prices” on thousands of products.

At the same time, Sainsbury’s Nectar scheme now offers personalised “Your Nectar Prices” at the till, with some households saving up to £150 a year.

Unlike those, however, Iceland’s Bonus Club adds a clear cashback element, with money credited straight back onto the account, and free home delivery thrown in too.

For regulars, the appeal is straightforward: free delivery plus cashback on top of special offers could add up quickly. A household spending £80 a week could earn around £200 a year back in Bonus Club credit, alongside access to regular price cuts.

With loyalty schemes becoming increasingly central to supermarket pricing, Iceland’s overhaul is another sign that shoppers are expected to sign up and tap in to get the best deals.