Rakuten vs. Ibotta: Which Cash Back App Offers More Value

Rakuten vs. Ibotta: Quick comparison

Both Rakuten and Ibotta offer cash back for online and in-store shopping at thousands of major retailers, providing an easy and free way to save money on purchases you’re already making.

Earning cash back is similar with both Rakuten and Ibotta, but you may find you like one more depending on the way you shop. There are big differences in specific perks, available redemption options, and minimum cashout values.

Cost	Free	Free
Online vs. in-store	Online and in-store	Online and in-store
Type of app	Mobile app (iOS and Android) and browser extension	Mobile app (iOS and Android) and browser extension
Redemption options	PayPal deposit, mailed check, or Amex Membership Rewards points	PayPal deposit, bank deposit, or gift cards
Minimum cash out	$5.01 minimum	$20 minimum
Rewards expiration	Rewards don’t expire, but they’re subject to account maintenance fees after 12 months of inactivity	Rewards don’t expire, but they’re subject to account maintenance fees after six months of inactivity
Best for...	Online shopping	In-store offers

When to go with Rakuten

Here are a few situations where Rakuten might be the better option for you:

• You shop online a lot.
• You want to earn Amex Membership Rewards points.
• You want to maximize referral bonuses.

Online shopping

If you’re a frequent online shopper, you’ll probably appreciate the ease of using Rakuten. You can get cash back in two ways: by going to the Rakuten website or app and clicking on the retailer you want to shop with, or by going directly to the retailer’s website and using your Rakuten browser extension to activate cash back. The browser extension automatically pops up whenever I’m shopping online, so I don’t have to think about it, which works better for me.

I often forget to use Rakuten for online purchases because I make most of them from my phone, and it doesn’t occur to me to open the app. Without the browser extension reminding me to activate my rewards, I wouldn’t earn nearly as many rewards.

While both Rakuten and Ibotta have online cash back promotions, Rakuten has a far greater selection. Additionally, Ibotta’s offers are often for specific items, while Rakuten allows you to earn a percentage back on your entire purchase.

Amex Membership Rewards

If you’re an American Express credit card holder, you’ll appreciate this Rakuten perk. Rather than getting paid in cash, you can opt to receive your cash back as Amex Membership Rewards points, which are transferred to your Amex account every three months. Depending on how you spend your points, you may get a bit more value this way, but you should compare to be sure before cashing out.

Referral bonuses

Both Rakuten and Ibotta offer referral bonuses, allowing you to earn more cash back when you refer friends to the platform. However, Rakuten’s bonuses are better. As of this writing, Rakuten offers $40 per referral when your friend uses your link and spends $40 within 90 days of joining. Meanwhile, Ibotta only offers $7 per referral when someone signs up using your link and submits their first receipt (though there’s no spending minimum).

When to go with Ibotta

Ibotta can help you get cash back on both in-store and online purchases. It’s best suited for you if:

• You want to earn cash back on groceries.
• You want easy price tracking.
• You want your earnings deposited into your bank account.

Grocery shopping

Ibotta is the better option for getting cash back on groceries, especially in-store purchases. After you shop, you can search through and claim current offers, scan your receipt, and get your cash back. Alternatively, you can link your store’s loyalty account and get rewards automatically.

While the process seems a bit onerous at first, I’ve gotten into the routine of scanning my receipts on Ibotta (and other cash back apps, like Fetch Rewards) as soon as I get home from the grocery store. It only takes about 30 seconds, and I find this easier to remember than activating an offer before shopping.

While it’s possible to earn cash back on groceries with Rakuten, there are fewer offers, and they’re primarily for online purchases.

If you like this, check out: The Best Credit Cards for Buying Groceries

Price tracking

A feature I love about Ibotta is its easy price tracking. When you’re looking at a product on a website, the Ibotta icon appears in the corner and gives you the option to “Notify price change.” You’ll be notified if the price on that item changes and can see fluctuations over the past 30 days.

I especially love using price tracking if I’m planning a large purchase and want to get the best deal. It’s also great for big sales, such as Black Friday or Amazon Prime Day. By looking at the price tracking and history, you can easily see if the price has recently changed — for example, if the retailer jacked up the cost only to list it “on-sale” for a specific event at its normal price (something that’s more common than you might think).

Bank deposits

Another advantage Ibotta has over Rakuten is the option to have your earnings deposited directly into your bank account. Both apps offer third-party deposits, and Rakuten offers cash back in the form of a paper check. But those methods can take several days. Ibotta’s direct deposit feature helps you get your money quicker and with fewer hoops to jump through.

Key differences between Rakuten and Ibotta

Breaking down the differences between Rakuten vs. Ibotta by looking at specific benefits can help you understand the strengths and weaknesses of each.

Cashing out

Winner: Rakuten

Cash back can take a while to accrue on both apps since you’re only earning a small percentage on each transaction. This can be frustrating depending on the payout threshold.

Rakuten has a rewards minimum of just $5.01 to cash out your earnings, which will allow you to get paid more quickly. Ibotta, on the other hand, requires you to wait until you hit $20. Ibotta also doesn’t automatically issue your rewards — you have to cash out manually. Rakuten, on the other hand, will send you a payout every three months, if you don’t request one earlier.

Redemption options

Winner: Tie

Both Ibotta and Rakuten allow you to receive your cash back via PayPal deposits. But Ibotta offers direct deposits into your bank account, while Rakuten offers paper checks. Ibotta also allows you to redeem your cash back for gift cards, while Rakuten allows you to redeem it for Amex Membership Rewards points.

There’s no clear winner here — the better one for you depends on how you prefer to receive rewards. They both have the same number of options. Ibotta is better if you want bank account deposits, while Rakuten is better if you’re an Amex customer and want to earn points.

Earning in-store cash back

Winner: Ibotta

Both Rakuten and Ibotta can be used for in-store and online purchases, but Ibotta is a clear winner for in-store purchases. Sure, the process of earning your cash back takes a bit longer since you have to claim your rewards and scan your receipts, but there are more in-store offers to take advantage of.

That said, Rakuten has a smoother in-store process. To get cash back, you just claim an offer in the app and then shop with a credit or debit card linked to your Rakuten account. But you aren’t likely to earn as much since there are fewer offers to choose from. For example, Rakuten currently doesn’t have any in-store offers for grocery stores in my area, nor at any other stores where I’d do my everyday shopping.

Offers

Winner: Tie

Both Rakuten and Ibotta work with a range of retailers, and I can’t say one clearly stands out over the other. Instead, Rakuten shines online while Ibotta is better in stores. At any given time, Rakuten may offer more cash back at one retailer while Ibotta offers more cash back at another.

This is why it may be the most beneficial to use both cash back apps. You can’t necessarily earn cash back from both Rakuten and Ibotta on the same purchases, but you can maximize your earnings by choosing the app that earns the most cash back whenever you make a purchase.

For example, both services currently have offers for Walmart at the time of writing this, so I’d compare them to see which is offering more cash back on the items I’m actually purchasing. Offers can definitely change, so it’s worth checking in every time you’re shopping.

FAQs

Bottom line

If one of your personal finance goals is to save money on everyday purchases, consider adding apps like Rakuten and Ibotta into your shopping routine. As you look into which cash back app is better for you, remember you can use both at different times depending on the available earning rates.

While Rakuten tends to be better for online shopping, Ibotta is a great option for in-store purchases, especially groceries.

Earn $100s of Dollars in Free Gift Cards

Shopkick Benefits

• Get free gift cards to your favorite retailers by walking into participating stores, scanning barcodes, watching videos, submitting receipts, and shopping online or in-person
• Bonus Free Gift Card: Enter code BUZZ after downloading and earn your first 10 kicks by simply walking into a store, scanning a product, or making a purchase¹ <p>Promotional offer only available to first-time Shopkick users. To redeem offer, earn your first 10 points (”kicks”) within 14 days of downloading the app (*excludes video kicks). </p>
• Cash out your bonus points for a free $5 gift card to Starbucks, Amazon, Target, and 40+ more options!

Download Shopkick for a free $5 gift card with the code BUZZ