It's no secret that loyalty programs have gained significant popularity, with around 80% of American consumers reportedly enrolled in at least one, according to a Lending Tree survey.

Imagine a scenario where customers can use their credit cards to earn points that can be redeemed for travel tickets or accumulate points while shopping at a retailer for hotel stays.

Co-branded credit cards have been around since the mid-1980s, when an airline partnered with a bank to launch a gold Mastercard.