Credit Card Companies

Airlines also lend their loyalty points to credit card companies in exchange for money.

Customers are then able to earn points for the airline whenever they use that credit card.

Thus, the airlines function like a bank!

However, loyalty points are not regulated, not liable to taxes and don't have any intrinsic value, unlike currency.

This means the airlines themselves decide the value of their points, and what they can be spent on.

So airlines can change the amount of points that can be earned, the amount of points required to claim a reward, etc. at their will.