Top Cash Back Apps Compared: Rakuten vs. Honey vs. Ibotta

Rakuten vs. Honey vs. Ibotta: The Ultimate Cash Back Comparison

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In the ever-expanding universe of online and in-store shopping, savvy consumers are constantly looking for ways to save money and maximize every dollar. This has led to the rise of cashback apps, powerful tools that promise to put money back in your pocket for purchases you were already going to make. But with so many options available, the choice can be overwhelming. Three giants dominate this space: Rakuten, Honey, and Ibotta. Each offers a unique approach to saving, leaving many to wonder which one is truly the best.

This comprehensive guide will break down the ultimate showdown: Rakuten vs. Honey vs. Ibotta. We’ll dive deep into how each platform works, compare their key features head-to-head, and help you decide which of these top cash back apps is the perfect fit for your shopping style. Whether you’re an online deal hunter, a grocery guru, or just looking for the easiest way to save, you’re in the right place.

Table of Contents

Meet the Contenders: A Quick Overview

Before we dive into the nitty-gritty details, let’s get a high-level introduction to our three competitors. While they all aim to save you money, their methods and primary focus areas are quite different.

What is Rakuten?

Formerly known as Ebates, Rakuten is the king of straightforward cash back for online shopping. It partners with thousands of retailers to offer you a percentage of your purchase total back in cash. The process is simple: you start your shopping trip through Rakuten’s website or browser extension, click through to the retailer’s site, and shop as you normally would. Rakuten tracks your purchase and deposits the cash back into your account. There are no points to convert or hoops to jump through—just real cash back. This makes it one of the most popular rakuten like apps.

What is Honey?

Now part of the PayPal family, Honey (often seen as PayPal Honey vs. Rakuten) operates primarily as a browser extension that automates the deal-finding process. Its main claim to fame is its ability to automatically search for and apply the best available coupon codes at checkout, saving you the hassle of hunting them down yourself. In addition to coupons, Honey offers a rewards program called Honey Gold, where you can earn points on purchases and redeem them for gift cards. Many users compare honey vs rakuten for its ease of use during the checkout process.

What is Ibotta?

Ibotta started as a grocery-focused rebate app and has since become the best app for cash back on groceries. It allows you to earn cash back on specific products by activating offers in the ibotta app and then uploading a photo of your receipt after your shopping trip. Over the years, the ibotta save & earn cash back platform has expanded significantly. You can now link store loyalty cards for automatic rebates and even earn cash back on online purchases through its app or browser extension, making the difference between ibotta and rakuten less defined than it used to be.

How They Work: The Core Differences

Understanding the mechanics behind each app is key to choosing the right one. Let’s explore how you actually earn money with each service.

Rakuten: The Affiliate Link Model

Rakuten’s model is clean and simple. Retailers pay Rakuten a commission for sending shoppers to their websites. Rakuten then shares a portion of that commission with you in the form of cash back.

  • How to Earn: You must start your shopping “trip” at Rakuten. This means either going to Rakuten.com first and clicking their link to the store or activating the cash back offer via their browser extension when you land on a partner site. If you don’t click through their link, your purchase won’t be tracked, and you won’t earn cash back. It’s a crucial step in learning how to get rakuten cash back.

Honey: The Automatic Coupon Finder

Honey’s primary function is to save you money instantly at checkout. It shines a light on deals you might have missed.

  • How to Earn: When you reach the checkout page of an online store, the Honey browser extension will automatically pop up. With one click, it will test all known coupon codes for that retailer and apply the one that saves you the most money. Separately, for eligible purchases, you can earn Honey Gold, a points-based reward that can be redeemed for gift cards. This makes the rakuten or honey decision a question of immediate discounts versus delayed cash back.

Ibotta: The Offer-Based Rebate System

Ibotta requires a bit more active participation, especially for in-store shopping, which is its core strength.

  • How to Earn: Before you shop, you browse the ibotta offers in the app and add the ones you plan to buy to your list. After shopping, you take a picture of your receipt to prove you bought the items. The ibotta receipts system then verifies the purchase and credits the cash back to your account. For a more streamlined process, you can link your store loyalty accounts (ibotta walmart, ibotta target, etc.), and the rebates will be applied automatically after you shop. The ibotta for chrome extension also brings this functionality to online shopping.

Head-to-Head Battle: Rakuten vs. Honey vs. Ibotta

Let’s put the apps side-by-side to see how they stack up across the most important categories. This is the core of the rakuten vs honey vs ibotta debate.

Feature Rakuten Honey Ibotta
Primary Use Percentage-based cash back on online purchases. Automatic coupon codes and a points-based rewards program (Honey Gold). Item-specific rebates for in-store groceries and household goods; expanding online.
Best For Large online purchases (electronics, travel, clothing) where a percentage back is significant. Shoppers who want the best discount code instantly without searching. Grocery shopping, everyday essentials, and in-store purchases at major retailers.
How You’re Paid PayPal direct deposit or a physical “Big Fat Check.” Gift cards from major retailers like Amazon, Walmart, and Target. PayPal, Venmo, or direct bank transfer; also gift card options.
Payout Threshold $5.01 1,000 points ($10) for most gift cards. $20
Payout Schedule Quarterly (every 3 months). On-demand once you reach the threshold. On-demand once you reach the threshold.
Browser Extension Yes, alerts you to cash back opportunities and coupons. Yes, this is its primary function. Yes, for online shopping offers.
In-Store Offers Yes, but limited. You must link a credit card and activate offers first. No. Yes, this is its greatest strength. It’s often called the best receipt rewards app.

When looking for rakuten alternatives, people often consider Honey for its coupon-finding prowess and Ibotta for its dominance in the grocery space. The choice in the honey vs rakuten or rakuten vs ibotta matchup truly depends on where you spend most of your money.

Can You Stack the Savings? Using the Apps Together

This is one of the most common questions shoppers have. The good news is, you don’t always have to choose. Here’s how you can (and can’t) make these apps work together.

  • Can I use Honey and Rakuten at the same time?
    Yes, but with a major caveat. You can use Honey to find and apply the best coupon code, and then you can use Rakuten to get cash back. However, you cannot earn both Honey Gold and Rakuten cash back on the same transaction. Most coupon codes, especially those found by Honey, may be considered “unaffiliated” by Rakuten and could void your cash back. The best strategy is to let Honey apply its coupon code for an instant discount, then make sure your Rakuten cash back is still activated. The last link you click before buying is what determines who gets credit, so always activate Rakuten last. So, while you can’t truly combine rakuten and honey rewards, you can use both tools strategically.
  • Can I use Ibotta and Rakuten at the same time?
    Yes, this is much more straightforward. Since Ibotta’s in-store offers are based on your receipt and are independent of how you paid, you can use Rakuten’s much more limited in-store card-linked offers on the same purchase. For online shopping, you would have to choose one platform to click through. However, if you purchase groceries online via ibotta instacart, you can’t simultaneously use a Rakuten offer for that same retailer. Simply put, can you use rakuten and ibotta together? Yes, primarily when one is used for an in-store receipt scan and the other for a card-linked offer.

The Verdict: Which Cash Back App Should You Choose?

After comparing rakuten vs honey vs ibotta, there isn’t a single winner for everyone. The best cash back apps will be the one that aligns with your personal shopping habits.

Choose Rakuten if:

  • You do the majority of your non-grocery shopping online.
  • You make large purchases (like flights, hotels, or electronics) where a percentage back adds up quickly.
  • You prefer a simple, set-it-and-forget-it cash back model and don’t mind waiting for a quarterly payout.

Choose Honey if:

  • Your top priority is saving money instantly with coupon codes.
  • You value convenience and want an extension that does the heavy lifting for you at checkout.
  • You prefer redeeming rewards for gift cards over waiting for a cash payout.

Choose Ibotta if:

  • You spend a significant amount on groceries and household essentials.
  • You enjoy the “game” of hunting for specific offers and don’t mind scanning receipts. It’s considered the best cash back app for scanning receipts.
  • You want the flexibility of cashing out to PayPal or a bank account once you hit the threshold. It’s arguably the best cash back app for groceries.

Ultimately, many savvy savers use all three. They use Ibotta for their weekly grocery runs, rely on Honey to snag the best coupon code on every online purchase, and activate Rakuten for a final layer of cash back on big-ticket items.

Frequently Asked Questions

Which is better rakuten or honey?
This is a common question in the capital one shopping vs honey vs rakuten debate. Neither is definitively “better”—they serve different primary functions. Rakuten is better for earning a percentage of cash back on your total purchase, especially on high-ticket items. Honey is better for finding instant savings at checkout through coupon codes. Many users find the answer to what’s better rakuten or honey is to use both strategically.

Is ibotta better than rakuten?
When it comes to groceries and in-store shopping, Ibotta is significantly better than Rakuten. It has more offers, partners with more stores, and is built around the receipt-scanning model. For general online shopping, Rakuten often offers higher cash back rates and has a wider range of retail partners. So, is rakuten better than ibotta? It depends entirely on where you’re shopping.

Can you use honey and rakuten at the same time?
Yes, but you generally cannot earn rewards from both on a single transaction. A popular strategy is to use Honey to find the best coupon code and then activate Rakuten to earn cash back. Be aware that some coupons found by Honey might invalidate Rakuten’s cash back.

Is Honey trustworthy?
Yes. Is paypal honey safe is a frequent concern, but since being acquired by PayPal, a global leader in secure payments, its credibility has only strengthened. Honey makes money through affiliate commissions from retailers when you use their coupons or its rewards program, not by selling your personal data.

Is Ibotta legit?
Absolutely. Is ibotta legit is a question many new users ask, and the answer is a resounding yes. It’s a well-established company that has paid out over a billion dollars in rewards to its users. As long as you follow the rules for redeeming offers, you will get your cash back.

What is the catch with Rakuten?
There is no “catch,” but you need to understand how it works. The primary requirement is that you must start your shopping journey through a Rakuten link. If you forget to click through their site or activate the browser extension before making a purchase, you won’t get cash back. Additionally, the payout is on a quarterly schedule, so you have to wait for your money.

Why did Ebates change to Rakuten?
Ebates was acquired by the Japanese e-commerce company Rakuten, Inc. in 2014. The name change in 2019 was a branding move to unify the company under the global Rakuten name. The core service and cash back model remained the same.

What is the best cash back app for scanning receipts?
For scanning receipts, Ibotta is widely considered the best receipt cash back app. Its entire model was built on this functionality, and it has the most extensive network of product-specific offers. Other cash back apps with receipt scanning include Fetch Rewards and Checkout 51.