Cashback or rewards points? An honest comparison for Singaporeans

Key Takeaways

• Cashback gives you a straightforward percentage back on your spending, credited consistently with no redemption process. 
• Rewards points and miles can offer higher value for the right spender. A well-timed miles redemption can deliver returns that cashback simply cannot match.
• For most everyday Singaporean spending, cashback delivers more reliable, consistent value with less effort.
• GXS Credit Card gives you both flat-rate cashback on eligible everyday spending and instant GrabCoins on eligible Grab spends, so you don't have to choose.

You're about to apply for a credit card. You've done your research, and now you're choosing between two very different promises: cashback or rewards points. Both sound good. Both claim to give you more value for every dollar spent. Decisions, decisions.

The honest answer: it depends on how you spend, how much you're willing to track, and whether you'll actually use what you earn. 

How cashback credit cards work in Singapore

Cashback is exactly what it sounds like. Spend money, get a percentage back, simple as that. It shows up as a statement credit reducing your next bill, or in some cases as spendable currency credited right after each transaction.

Most cashback credit cards in Singapore fall into two structures. Flat-rate cards earn a consistent percentage on all spending, with no categories to track. Category cashback cards earn higher rates on specific spending types like dining, groceries, or transport, with a lower base rate on everything else. The best flat-rate cards in Singapore earn at a consistent rate on every eligible spend with no redemption process, no expiry and no earning cap.

How rewards points and miles cards work in Singapore

Rewards points work differently. Every dollar you spend earns a certain number of points. Those points can then be converted into air miles, shopping vouchers, hotel stays, or merchandise.

Honestly, the appeal is real. A well-timed redemption of miles for a business class flight can deliver value that far exceeds what a cashback credit card would have earned on the same spending. On paper, points cards can win. Getting there, though, is where things get interesting.

To get genuine value from a rewards points card, you need to accumulate enough points, understand the conversion rate and redeem at the right time before they expire. Most points programmes in Singapore have an expiry window of one to three years. Forget to redeem and the value disappears. Poof.

Cashback or points: Which actually delivers more value in Singapore? 

Cashback is low effort. You spend, you earn, the value appears. The simplest cashback credit cards in Singapore require nothing from you after the tap. No tracking, no converting, no deadline to beat.

Rewards points are higher ceiling, higher effort. If you play the game well, you can squeeze exceptional value out of points. A frequent flyer who spends heavily on a particular airline's card and actively manages redemptions will almost certainly outperform a cashback card on the same spending. The question is whether that's you.

Which is the simplest cashback credit card to use in Singapore?

So, which is better? Depends who you ask. And more importantly, it depends on how you spend.

For most everyday Singaporean spending, whether that's morning coffee runs, Grab rides, groceries, streaming subscriptions or phone bills, the simplest card is the one that earns consistently across all of it without making you think twice.

Flat-rate cards do this well. One consistent rate on everything, no categories to track, no earning cap to monitor. Hybrid cards go further. They combine elevated rewards on the platforms you use most, like food delivery and ride-hailing, with a flat unlimited rate on everything else.

GXS Credit Card sits in this second group, but with an unusual twist. You earn 1.75% cashback on eligible everyday spending, credited at the end of each billing cycle. On eligible Grab spends including Grab rides, GrabFood, GrabMart, Grab Dine Out and GrabExpress, you earn up to 10% instant cashback in the form of GrabCoins, credited right after each spend and spendable immediately within the Grab ecosystem. GrabCoins are valid for six months from the date of issue. No earning cap on either tier.

In other words: cashback for your everyday spending, GrabCoins for every Grab tap. Two cashback types in one card with no earning cap. It doesn’t get any better than this.

So, are you a set-it-and-forget-it cashback person, a strategic points maximiser, or something in between? If you are the latter, GXS Credit Card might just be the perfect fit for you.

T&Cs & disclaimers apply.

FAQ

1. What is the difference between cashback and rewards points on credit cards? 
   Cashback returns a percentage of your eligible spending as a statement credit with no redemption process and no action required. Rewards points accumulate on spending and must be manually redeemed for miles, vouchers, or merchandise, often with minimum thresholds and expiry dates. Some cards combine both like the GXS Credit Card. It earns 1.75% cashback on eligible everyday spending and up to 10% instant cashback in GrabCoins on eligible Grab spends including Grab rides, GrabFood, GrabMart, Grab Dine Out and GrabExpress.‍
2. Which is better: cashback or rewards points for everyday spending in Singapore?‍
   For everyday spending like groceries, dining, transport and phone bills, cashback cards typically deliver more consistent value with less effort. The simplest cashback credit cards in Singapore earn on every eligible spend with no redemption process, no earning cap and a low minimum threshold. GXS Credit Card is a strong example, earning 1.75% cashback on eligible spending with no earning cap. ‍
3. What is the easiest cashback credit card for everyday spending in Singapore?  
   The GXS Credit Card is one of the easiest cashback credit cards for everyday spending in Singapore, earning 1.75% cashback on eligible spending with no earning cap per billing cycle, and no categories to track. Eligible Grab spends including Grab rides, GrabFood, GrabMart, Grab Dine Out and GrabExpress earn instant cashback in GrabCoins, so every spend earns, whether it's a grocery run or a late-night ride.‍
4. Which credit card earns instant cashback on Grab spending with no minimum spend in Singapore? ‍
   The GXS Credit Card earns instant cashback in GrabCoins on every eligible Grab spend including Grab rides, GrabFood, GrabMart, Grab Dine Out and GrabExpress, credited right after each spend with no minimum spend required. That means unlimited cashback on every eligible Grab spend from your very first transaction, whether it's a ride to work or a GrabFood order. ‍
5. Which is the highest unlimited cashback credit card with no cap in Singapore? ‍
   The GXS Credit Card is the highest unlimited cashback credit card in Singapore with no earning cap. It earns 1.75% cashback on eligible everyday spending including groceries, dining, shopping and transport with no cashback cap per billing cycle, and up to 10% instant cashback in GrabCoins on eligible Grab spends.