Which is better, Ibotta or Rakuten?

If you want to know which is the best cashback app for you, read this Ibotta vs. Rakuten comparison review post.

This article will cover each app’s features side by side and identify their individual strong points and drawbacks that will help you decide which one is right for you.

Therefore, without further ado, let's find out which is better, Ibotta or Rakuten?

What is a cashback app?

Before anything else, if you are not yet familiar with what a cashback app or site is, you should first understand what it is and how it works.

Honestly, when I first heard about it, I was a bit skeptical about it because it seemed too good to be true. Imagine getting free money just by shopping with these apps! How crazy is that?

However, you shouldn't be too cynical because cashback apps work, and it's a legit way to shop smart.

In case you are wondering, both Ibotta and Rakuten are good examples of cashback apps.

How do cashback apps work?

Cashback apps are generally free mobile apps that will give you rebates for shopping at their participating stores or when you buy items from brands they have partnered with.

Furthermore, earned cashback from Ibotta or Rakuten (and any other apps) is not that high, but it eventually adds up. Although it varies depending on which site you shop at and which app you choose, some users even claim to have gained over $100 a month in cashback alone.

How do cashback services make money?

So, if you wonder how these cashback companies (like Ibotta and Rakuten) profit from giving you your money back, well, it's because they're affiliates of retailers displayed in their apps or website.

Moreover, these retailers and partnered merchants pay them to generate traffic to their websites to make you purchase from them.

Thus, Ibotta and Rakuten, and other cashback services, act as middlemen or intermediaries between you and the retail store site.

So the retailers pay the service for sending you to their store. Then cashback apps split this commission by giving a portion of it to you, the end-user, in the form of cashback.

Therefore, everybody wins! and we all get a fair share of the pie and money!

Ibotta vs. Rakuten – Which is better?

Which is better Ibotta or Rakuten? Let's see a quick run-through of each app.

Ibotta

Bryan Leach founded Ibotta in 2012. Since then, the company has been growing and now has more than 35 million users. In addition, Ibotta allows you to earn cashback when shopping in-store, online, or right through the app.

Ibotta was initially known for its cashback offers on various grocery items, now it has deals and offerings for “any brand”, and “any store,”

How does Ibotta work?

For most apps like Ibotta and Rakuten, getting started is straightforward.

First, you can shop in-store or online. The cashback happens in an instant right after you hit the store or purchase through the Ibotta app.

So you shop as usual and start earning your cashback.

To learn more about how Ibotta works, click the full review below.

Read more:

Ibotta Review: How to get cashback on groceries and save money?

Ibotta Pros and Cons

Pros

1. Free to sign up with over 1,500 partner stores available.
2. Cashback on regular purchases.
3. Instant cashback.

Cons

1. There is a minimum threshold of $20 to cash out.
2. It's easy to get tempted to spend your money

That’s it for the Ibotta app. Next, let us now proceed to the other contender.

Rakuten

Rakuten, formerly known as Ebates, is another cashback and rewards site founded in 1997. It has over 2,500 affiliated stores. Moreover, Rakuten lets you earn cashback via online shopping, brick-and-mortar stores, mobile apps, or its browser extension.

How does Rakuten work?

You can start shopping at Rakuten.com or use the Rakuten App. Furthermore, even better is to use its browser extension so that you can quickly get cashback on every purchase online.

After that, open the app and select which stores you want to start shopping from. Likewise, you can filter by categories and stores.

Therefore, shop like usual and wait for your cashback to appear on your dashboard. That's it!

To read our full review, click below.

Read more:
How does Rakuten work? Will it Actually Save You Money?

Rakuten Pros and Cons

Pros

1. It offers several ways to save money.
2. Low cashout threshold.
3. Free to use with over 2,500 retail stores available.

Cons

1. There is a fixed waiting schedule for payout.

Comparison of Rakuten and Ibotta Features.

Features	Ibotta	Rakuten
Platform Availability	iOS, Android app, browser extension	iOS, Android, browser extension, website
Core Feature	Grocery rebates	Online shopping
Welcome Bonus	$10 (must redeem a brand name rebate within 7 days) Plus $5 for redeeming a Mobile Shopping offer. Plus $5 for redeeming an in-store Mobile Shopping offer.	$10 (must purchase at least $25 online through Rakuten within 90 days
Number of Participating Stores	1,500+	2,500+
Cashback Percentage	Varies	Varies
Referral Bonus	$5	$25
Minimum Balance to Cashout	$20	$5
Payout Schedule and Method	On-demand, through Venmo, Paypal or e-Gift cards	Quarterly through check or Paypal.

More Ways to earn money with Rakuten and Ibotta.

Cashback apps such as these not only offer literal cashback. Hence, they offer several ways to earn even more money just by using their apps' services. The following are some ways you can try to get extra cash.

• They have a referral and welcome bonus, which is supported by both Rakuten and Ibotta apps,
• By linking your loyalty store account with Ibotta,
• Pay with Ibotta feature,
• Answering questions or watching short video clips to claim a bonus offer by Ibotta,
• Participating in double cashback, hot deals, and travel deals feature offered by Rakuten,
• And more! You only have to use Ibotta and Rakuten to maximize your cashback potential consistently.

Ibotta vs. Rakuten: Frequently Asked Questions (FAQs)

Can you use Rakuten and Ibotta together?

Without a doubt!

Keep in mind that Rakuten and Ibotta work with different stores, and the more types of purchases you can earn extra money on, the better!

So, the answer to this question is YES! You can, and you should use both to maximize your earnings!

What's the catch with Rakuten and Ibotta?

The catch is that you are their customer. Ultimately, they profit because of your purchases to the stores they're affiliated or partnered with.

In return, these stores pay Rakuten and Ibotta a small commission for getting you to shop in their stores. And you get a fair share of that commission as a cashback.

Are cashback apps worth it?

Cashback apps will be worth it as long as you don't overspend. Remember, you still have to let go or free up some of your money.

On the other hand, it may result in a negative cash flow. So, don't be too hyped because of the ‘rewards' they offer”.

Furthermore, always remember that this “free money” is just a bit of money you initially spend, and you are only getting a small portion of it.

More importantly, buy items you only need and not because you think you can stack up money from small cash-backs.

Is Rakuten the same as Ibotta?

They share a semblance since they generally both offer cashback but differ in terms of how you use it and the scope they cover.

For example, the number of participating stores they have. Although Ibotta wins in the grocery rebates department, Rakuten has also included store grocery brands in their categories but focuses mostly on brand items.

But, you are always free to choose which you think will be of more service to you.

More Questions

Read on for additional questions and answers regarding Rakuten and Ibotta.

Are cashback apps safe?

Ibotta and Rakuten, alongside other cashback apps, are legit and safe to use. According to both app’s privacy policies, they never store your data and never share or sell it to third parties.

In addition, apps like these are also using bank-level security encryption, so you need not worry about security and privacy concerns.

However, the downside to this is that most of these apps have limited customer support. So, if you have any questions, you have to reach out through their contact page and email.

Is Rakuten (Ebates) better than Ibotta?

Both have their unique strengths and offerings. They share almost the same scope of services, but they differ in terms of how you would like to use these apps.

Therefore, it depends on how you will use it, and also depending on your motivation to shop, one app might be better sometimes or vice versa.

Ibotta and Rakuten: Which cashback app is the best?

This question is a matter of personal decision. If you have a large family and do more grocery shopping, then Ibotta will be your best bet.

On the other hand, if you do most of your purchases on brand items online, you will be good at using Rakuten.

The good thing is that you can use them both!

Most importantly, cash back apps such as Ibotta and Rakuten are generally a smart way to save money. In using both, you’ll get cashback twice!

However, keep in mind that cashback is just a bit of saving. Essentially, self-discipline and control is the key to achieving financial independence. You can do it!

Have you used Rakuten or Ibotta? How was your experience? Let us know in the comments below.
Which is a better cashback app for you?