AbstractGamification has often been used to stimulate learner engagement via intangible rewards, such as virtual points and virtual badges, rather than material goods or benefits. However, not all learners value such intangible rewards; some express their desire to redeem intangible rewards for utilitarian resources or benefits. Although tangible rewards have long been considered a key gamification mechanism in commercial loyalty programs, few studies have explicitly explored its effectiveness in the context of gamified education. To address this gap, the present study used a randomized controlled trial approach to examine the effects of tangible rewards that are redeemed through intangible rewards on students' intrinsic motivation, behavioural and cognitive engagement, and learning performance in a fully online gamified flipped class. Each student was randomly assigned either to the tangible rewards group (EG = 28) or the intangible rewards group (CG = 29). The students in EG significantly outperformed those in CG in terms of intrinsic motivation, behavioural engagement, cognitive engagement and learning performance in the final exam. The results provided practical implications for instructors who plan to use tangible rewards in their gamified classes. Practitioner notesWhat is already known about this topic Fully online learning often suffers from a lack of student engagement. Gamification is often used to stimulate learner engagement via intangible rewards (eg, virtual points and badges) that do not contain any utilitarian benefits outside the gamified system. Not all learners value intangible rewards over time—instead, they desire to convert the intangible badges or points into more utilitarian benefits/resources. What this paper adds This study conducted a randomized controlled experiment to compare the effects of redeemable tangible rewards and intangible rewards on student intrinsic motivation, behavioural engagement, cognitive engagement and learning performance. The tangible rewards group significantly outperformed the intangible rewards group in all aspects. Implications for practice Using tangible rewards is better than merely using intangible rewards in gamified learning. Practitioners should link tangible rewards to a standard of performance. Practitioners should also set a specific and moderately challenging redemption goal.