Loyalty schemes of all types, whether Grannie’s green stamps (remember them?) or Frequent Flier or whatever are a blight on the economy in several ways.
1. By hiding the actual cost of goods and services provided through loading up an additional cost for running the scheme.
2. By adding friction in the marketplace, hence inefficiency on a national scale. People will buy from Woollies (or Qantas, or whoever) mindlessly, instead of comparison of price, quality and quantity. In other words, will ingore better offers in their hope of picking up an as-yet unquantifiable reward.
3. Because of the above, lead to still more aggregation in the marketplace, with larger retailers effectively freezing out the smaller or newer.

I firmly believe that loyalty schemes should be barred, in the interests of the nation’s economy.