Major loyalty scheme FlyBuys will come to an end later this year.

The scheme allows customers to redeem points for items in its loyalty shop, get petrol discounts and convert their points into New World Dollars.

The programme has been running since 1996 and has about 1.8 million active Flybuys members.

"We're incredibly proud of what Flybuys has achieved over the past 28 years. It's been a privilege to be a part of so many New Zealanders' lives, helping them save money and enjoy rewards from their favourite brands," Lizzy Ryley, chief executive of Loyalty NZ which runs Flybuys, said.

"The landscape for loyalty programmes has changed, and continues to change rapidly, with businesses now having greater access to technology and capabilities that enable them to create their own highly tailored proprietary loyalty programmes. The Flybuys model of a services and retailer alliance has run its course, so will close at the end of this year," Ryley said.

Flybuys members would be able to earn points up until 11.59pm on 31 October and would have until 11.59pm on 31 December 2024 to redeem them.

Ryley said they wanted to give their customers as much notice as possible to redeem their points.

"Flybuys would like to thank the millions of New Zealanders who have embraced the programme. We are hugely grateful for the support we have received from Kiwis over the past 28 years," Ryley said.

Alongside Flybuys, Loyalty New Zealand, the company that administers Flybuys, would also close.

IAG New Zealand had agreed to acquire some of Loyalty New Zealand's assets and would also be making offers of employment to approximately one-third of Loyalty New Zealand's staff.

Approximately 130 people work for Loyalty NZ.

IAG New Zealand intended to harness the underlying technology and capability of Loyalty New Zealand's people to enhance its own business transformation activities.