Xbox Store to Support Paying With Microsoft Rewards Points

Microsoft is rolling out updates to Microsoft Rewards while also introducing a separate Xbox-focused feature that changes how players spend their points.

The update allows users to use Microsoft Rewards points as a payment method at checkout on Xbox consoles. Instead of redeeming points for gift cards first, players can now apply their balance directly when purchasing items from the Xbox Marketplace.

Spend Rewards Points Directly on Xbox

With the new system, buying content with points becomes more seamless. Players can select a game or add-on in the Store, choose their available points at checkout, and complete the purchase without leaving the flow.

This effectively turns reward points into a built-in wallet for Xbox purchases. However, the feature comes with one key limitation, as points cannot be used for subscription services.

New Tiers and Boosted Earnings

Microsoft is also expanding the Rewards program with new earning tiers tied to Xbox Game Pass subscriptions. Users on higher tiers will earn points at a faster rate.

Game Pass members benefit from multipliers, with Premium tier users earning double points and Ultimate subscribers earning up to four times more. This change aims to encourage engagement across the Xbox ecosystem.

To put the value into perspective, around 5,000 points still converts to roughly a $5 Xbox gift card, maintaining a familiar baseline for users.

More Ways to Earn Points

The update also highlights additional earning options, including the Xbox Mastercard. This card allows players to accumulate points faster while also unlocking Level 2 Rewards benefits automatically.

Microsoft has not shared an exact release date for the new system, but the feature is expected to roll out in phases.

Overall, the changes signal a shift toward making Microsoft Rewards more integrated and flexible on Xbox, reducing friction between earning and spending points.

In other news, new Xbox Game Pass tiers have been leaked, and the latest Xbox Insider update is reportedly causing serious issues for some users, including consoles becoming unusable.

Via Insider Gaming