If you shop in-store or online without using a reward app, you're missing out on free and easy cash back.
But, there aresomany different reward apps out there, so it can be difficult to know which one is best for your wallet.
Two incredibly popular cash-back reward platforms are Ibotta and Rakuten.
I've personally used both platforms for years. While there are plenty of similarities, I also think there's a right time and place to use either Rakuten or Ibotta depending on where you shop.
So, in my Ibotta vs Rakuten comparison, we're covering all of the features, pros and cons, and how to choose the right reward app/website for you.
Looking for other easy ways to earn rewards for shopping? Checkout:
- Branded Surveys – Earn gift cards and free PayPal cash for answering surveys!
- Capital One Shopping – Automatically apply available coupon codes at 30,000+ stores!
About Ibotta
Ibotta is one of the most popular grocery reward apps for Android and iOS out there, and began in 2011.
Since its launch, Ibotta has gotten millions of downloads. It's pretty much a must-have reward app if you do most of your household's shopping.
However, since its inception, Ibotta has expanded beyond a simple grocery rewards app. In fact, Ibotta lets you earn cash back for shopping at retailers in categories like:
- Clothing and shoes
- Electronics
- Groceries
- Health and beauty products
- Entertainment
- Travel
- Subscriptions
- Sports and outdoors
The Ibotta app has millions of downloads. According to its website, Ibotta has also paid over $980 million to members since starting.
In short, Ibotta is one of the most popular cash-back reward apps on the market. And it's expanded beyond grocery reward apps like Fetch Rewards and lets you earn rewards for shopping in numerous categories.
About Rakuten
Rakuten began in 1997, and, like Ibotta, it's one of the most well-known reward platforms out there.
However, Rakuten isn't just a rewards website: it's actually a Japanese ecommerce company that owns multiple businesses in segments like finance, messaging, food delivery, travel, and internet media.
In 2014, Rakuten acquired cash-back reward website Ebates, slowly phasing out the brand and renaming the platform to Rakuten in 2019.
Like Ibotta, Rakuten partners with thousands of retailers and lets you earn cash back for shopping in categories like:
- Apparel
- Business services
- Baby supplies
- Electronics
- Grocery delivery services
- Home decor
- Pet supplies
- Sports
- Travel
Rakuten also has millions of users, and it's certainly a larger company than Ibotta in terms of size and reach.
Ibotta vs Rakuten
I use both Ibotta and Rakuten to get paid to shop, and I think each platform can help people save more of their hard-earned money.
But if you're wondering if Rakuten or Ibotta is better, it's important to compare similar features on both platforms against one another so you're comparing apples to apples.
So, let's jump into how the main features of Ibotta compare against Rakuten.
How The Platforms Work
One main factor to decide if Rakuten is better than Ibotta is how easy each platform is to use. After all, if you have to jump through hoops to enjoy your rewards, it's probably not worth the effort!
How Ibotta Works
Using Ibotta is similar to using other reward apps like Checkout 51 and Fetch Rewards.
In a nutshell, earning cash back with Ibotta takes six steps:
- Download Ibotta for Android or iOS
- Browse Ibotta for offers you want to shop for
- Add offers to your Ibotta shopping list
- Go shopping
- Upload a picture of your receipt with Ibotta's app to provide proof of purchase
- Earn cash back
Ultimately, if you use other receipt scanning apps, using Ibotta is going to feel very familiar.
Ibotta also has some other features like loyalty card linking and a shopping browser extension, but I'll cover these two features later on in this Ibotta vs Rakuten debate.
How Rakuten Works
Unlike Ibotta, Rakuten isn't a receipt-scanning app. Rather, Rakuten focuses ononlineshopping, which is the biggest difference between Ibotta, which focuses on earning in-store cash back.
You can still earn in-store cash back with Rakuten, which I'll cover later, but for the most part, it's an online cash-back rewards platform.
To use Rakuten, you:
- Create a free Rakuten account
- Visit Rakuten.com and looks for partner stores you want to shop online at
- Select the merchant you want to shop at so Rakuten can redirect you to its website
- Shop and earn cash back
Using Ibotta and Rakuten is easy, but again, Ibotta focuses on in-store offers whereas Rakuten simply redirects you to online partners and pays you cash back for shopping.
Winner: Both platforms are incredibly easy to use, so this is a tie.
Available Stores
A reward app is only useful to you if you can use it in your country. Additionally, you want the platform to partner with stores you normally shop at so you can earn rewards.
Thankfully, both Ibotta and Rakuten have a strong list of partner stores, although availability is quite different for each platform.
Ibotta
Ibotta is only available in the United States, and this is one massive difference in the Ibotta vs Rakuten debate since Rakuten is more global.
However, Ibotta covers the U.S. market very thoroughly and partners with over 1,500 retailers, including names like:
- Best Buy
- Expedia
- Kroger
- Home Depot
- Nike
- Petco
- Staples
- Target
- Walmart
- Xbox
It's free to sign up for Ibotta, so if you live in the United States, this is one of the most robust reward apps on the market.
Rakuten
Unlike Ibotta, Rakuten is available in several countries, including the United States, Canada, UK, South Korea, and Japan.
So, it's clear Rakuten is way more accessible than Ibotta, but what about retail partners?
Well, Rakuten also has more retailer partners than Ibotta. Currently, you can earn cash back from over 2,500 Rakuten partners, including retailers like:
- Adidas
- Best Buy
- CVS
- Lowe's
- Kohl's
- H&M
- Macy's
- Old Navy
- Shein
- Target
- Walmart
Generally, if Ibotta has a partner, Rakuten should as well.
Winner: Rakuten is more globally available than Ibotta and also has more than twice the number of retailers as Ibotta.
In-Store Shopping Offers
As mentioned, both Ibotta and Rakuten let you earn rewards for in-store purchases. But, what platform is best for in-store shopping?
Ibotta In-Store Shopping
Ibotta focuses on in-store shopping. If you do most of your household's shopping for things like groceries or hit up the mall frequently, this is a better app than Rakuten.
Pretty much every Ibotta category has plenty of in-store offers, so you can load up the app with products you want to buy, shop, and earn.
Plus, Ibotta also lets you link store loyalty cards from over 100 retailers to your Ibotta account. When you shop at a store with a linked loyalty card, Ibotta pays you cash back automatically so you don't have to upload your receipt.
Again, groceries are where Ibotta shines, but it's clear that this is an in-store focused rewards platform.
Rakuten In-Store Shopping
Rakuten used to only offer online rewards, but the platform is expanding it's in-store cash-back offers. However, the system works differently than Ibotta's receipt scanning system.
To earn in-store cash back with Rakuten, you:
- Link a credit or debit card you use to shop to your Rakuten account
- Visit Rakuten's in-store cash back section
- Link an offer you want to buy to your debit or credit card
- Pay for that offer with your linked card
- Earn cash back for your in-store purchase
You can also download the Rakuten app to easily find in-store cash back offers while on the go, so you don't need to search and link offers from your computer.
However, Rakuten doesn't have as many in-store offers as Ibotta; I currently see 82 in-store offers in my Rakuten account.
Winner: Ibotta has more in-store offers than Rakuten, and loyalty card linking is great for groceries.
Online Shopping Offers
So, Ibotta is better than Rakuten for earning cash back for in-store purchases.
But, is Ibotta better than Rakuten for online shopping? Let's take a look!
Ibotta Online Shopping
Ibotta has been working to expand its online cash-back rewards side, and its actually done a very good job on this front.
With its browser extension, you can earn up to 10% when you shop online at various Ibotta partners.
The extension activates when you're shopping at an eligible partner, and Ibotta currently supports over 500 online retailer partners.
If you prefer shopping online with your mobile phone with apps like Dosh or Drop, Ibotta also has you covered; the mobile app also lets you shop online to earn cash back at certain partners.
Rakuten Online Shopping
Like Ibotta, Rakuten also has a browser extension you can use to automatically earn cash back when you shop online at eligible partners.
However, Rakuten haswaymore online offers than Ibotta, and online rewards has been Rakuten's focus since day one.
With Rakuten, you can earn cash back for shopping online at over 2,500 partners, which is way more than what Ibotta offers.
Winner: Rakuten has more online cash-back offers than Ibotta.
Earning Potential
Ibotta is better for in-store offers than Rakuten, while Rakuten reigns supreme for online shoppers.
But, what platform has the highest earning potential?
Ibotta
If you browse for offers on Ibotta, you find many offers that pay between $0.25 and $2 cash back for shopping.
For example, here are some grocery offers on Ibotta:
- $0.15 back for buying Goya beans
- $0.30 for buying Sprite
- $0.50 for buying Clio Greek Yoghurt Bars
- $1.00 for buying Kellogg's Frosted Flakes Cereal
- $1.25 for buying GOYA Frozen Bean Burgers
- $2.50 for buying Ian's Frozen Entrees
- $3.00 for buying any Almay eye cosmetic product
- $5.99 for buying Meatless Farm Plant-Based Burgers
What I like about Ibotta offers is that there's a lot of variety, especially for groceries.
Plus, you can find some very lucrative offers that pay several dollars in cash back when an Ibotta partner is really trying to incentivize shoppers to try its products.
Ultimately, I think this makes Ibotta fairly easy to earn at least a few dollars per shopping trip, so I can see it being a $10 to $50 per month app if you regularly browse for offers.
Rakuten
Another difference between Rakuten and Ibotta is that Rakuten pays you cash back as a percentage of your purchase, not as a dollar-amount rebate.
This doesn't matter too much at the end of the day since you get paid either way, but it just makes this comparison a bit tricky.
In any case, a lot of Rakuten's offers are in the 1% to 4% cash back range.
However, I like Rakuten because it also has offers like double cash-back rewards and deals of the week where retailers can have boosted cash-back rates.
Plus, you can find Rakuten offers of around 5% to 10% cash back or more, so for large online purchases, the earning potential is quite high.
To date, I've actually earned $1,200 by using Rakuten and referring some friends/readers, so I think it's an excellent way to consistently earn for your online shopping.
In-store cash back is generally weaker than Ibotta however, and most offers pay around 2% cash back.
Winner: Ibotta has higher earning potential for groceries and most in-store offers, but Rakuten is king for online cash-back rewards. Personally, I prefer using Rakuten.
Rewards & Cash Out Requirements
Another important consideration in choosing if Rakuten or Ibotta is better is the reward options.
Rakuten and Ibotta are quite different in terms of what you can redeem and the payout requirements, so this might influence your decision making.
Ibotta Rewards
Ibotta lets you redeem cash back when you earn at least $20. You can redeem cash back for:
- Free gift cards to dozens of retailers like Amazon and Walmart
- Direct deposit
- PayPal cash
- Venmo
This is very flexible in terms of rewards, although a $20 minimum is on the higher side when you consider apps like Fetch Rewards let you redeem many gift cards starting at $3.
Extra Reading – How To Get Free Starbucks Gift Cards.
Rakuten
Rakuten has two reward options: PayPal cash or check. So, unlike Ibotta, you can't earn free gift cards or withdraw your earnings right to your bank account.
Additionally, Rakuten pays you quarterly as long as you have at least $5 in your account balance.
Ultimately, this makes Rakuten less flexible than Ibotta, but the cash out requirement is also lower.
I honestly don't care that Rakuten doesn't offer gift cards since you can use PayPal cash or check payments to buy whatever you want, but it's slower to cash out with since you have to wait each quarter.
Winner: Ibotta is more flexible than Rakuten and lets you cash out faster, provided you can reach $20.
Referral Programs
The best reward apps often have sign up bonuses if you join the platform or when you refer your friends.
Thankfully, both Ibotta and Rakuten have lucrative referral programs to help you hit the ground running.
Ibotta Referral Program
When you sign up for Ibotta, you can earn up to $20 in free money as a welcome bonus in three different stages.
- First Bonus($10): Earn $10 for redeeming an in-store offer.
- Second Bonus ($5): Earn $5 for completing a mobile shopping offer.
- Third Bonus ($5): Earn $5 for redeeming another in-store or mobile shopping offer.
I think this is a generous referral program and a nice way to hit the ground running with your Ibotta earnings.
You can read my post on the best $10 sign up bonuses for even more freebies!
Extra Reading – The Best Cheats For Ibotta.
Rakuten Referral Program
In my opinion, Rakuten has one of the best referral programs out there and is much better than Ibotta.
This is because Rakuten often pays between $10 to $30 to youandthe person you refer when your referral signs up and completes an eligible purchase.
That's right: Rakuten can pay you and the person who referred you to join $30 each, just for trying out Rakuten!
Plus, I like that Rakuten pays you your bonus once you complete an eligible purchase; you don't have to complete multiple steps like you do with Ibotta to get your entire reward.
Winner: Rakuten's referral program is simpler and usually pays more than Ibotta.
Ibotta Pros & Cons
Pros:
- Excels for grocery cash back
- Very easy to use
- Decent welcome bonus of $20
- You can link loyalty cards to make Ibotta even better
- Expanding online shopping offers
- Reward variety
Cons:
- A $20 redemption minimum is somewhat high
- Worse online shopping offers than Rakuten
- Ibotta is only available in the United States
Rakuten Pros & Cons
Pros:
- Rakuten is available in more countries than Ibotta
- The best way to earn cash-back rewards for online shopping
- More partners than Ibotta
- Expanding in-store shopping offers
- Very intuitive browser extension
Cons:
- In-store shopping offers still have some catching up to do compared to Ibotta
- You can't cash out whenever you want
Frequently Asked Questions
Does Ibotta Pay More Than Rakuten?
In my experience, Ibotta pays more than Rakuten for in-store offers. This is especially true for categories like groceries and apparel. However, Rakuten usually pays more for online shopping. I also think the referral program is more lucrative.
Can I Use Ibotta And Rakuten At The Same Time?
In my experience, you can't use apps like Ibotta and Rakuten together. Having both shopping extensions active when you shop online can cancel each other out so you don't get paid. And Ibotta and Rakuten don't usually have the same deals available anyways, so it's hard to use both simultaneously.
Some users report that you can double-up on reward apps like Rakuten and Ibotta and use them at the same time. In my experience, you can't find the same offers on Rakuten and Ibotta.
My advice is to use Ibotta for in-store shopping and groceries and to use Rakuten for online shopping.
What Is The Difference Between Ebates And Rakuten?
Rakuten acquired Ebates in 2014 and eventually renamed Ebates to Rakuten, so there's no difference between Ebates and Rakuten since Ebates turned into Rakuten.
Can You Upload Receipts To Rakuten?
You can't upload receipts to Rakuten to provide proof of purchase. Apps like Ibotta and Fetch Rewards rely on receipts, but Rakuten is mostly for online shopping.
According to Rakukten, “you can earn Cash Back only by starting a Shopping Trip with Rakuten. We have no way to add Cash Back after a purchase has already been made.”
In short, you upload receipts to Ibotta but never to Rakuten.
If you want to try other receipt and barcode scanning apps that pay, you can checkout our Receipt Hog review and CoinOut app review!
Ibotta vs Rakuten – Which Platform Is Best?
Now that you understand how Ibotta and Rakuten work and all of the pros and cons, here's how I suggest making your final decision on which platform to use most.
Use Ibotta If
Ibotta is better than Rakuten if you mostly shop in-store and do all of the grocery shopping for your household. It's also better than Rakuten if you want to cash out whenever you reach $20 rather than waiting for quarterly payments.
Use Rakuten If
Use Rakuten instead of Ibotta if you live outside of the United States since Ibotta is U.S. Additionally, Rakuten is better than Ibotta for online shopping since its list of retail partners and cash-back rates are superior.
You can also try using Rakuten with browser extensions like Honey orCapital One Shoppingto mix in some online coupon codes. But, I wouldn't use Ibotta over Rakuten for online shopping.
Extra Reading – Honey vs Rakuten – Which One Is Best?
Note: Capital One Shopping compensates us when you sign up with the provided links.
Use Both Platforms If
Personally, I've tried using both Ibotta and Rakuten but ultimately gave up on using Ibotta. I mostly shop online, and I also spend half the year living in Canada, so I don't get to use Ibotta all the time.
That being said, I think both reward platforms are worth using if you do most of the shopping for your household.
You can use Ibotta to earn rewards for groceries or in-store shopping. When you shop online, make sure you have Rakuten's browser extension going so you automatically earn cash back.
Between both programs, I think it's reasonable to earn $50 to $200 per year in free money depending on how much shopping you do!
Extra Reading – The Best Apps That Pay Real Money Instantly.
Final Thoughts
I hope our Rakuten vs Ibotta breakdown helps clarify how both companies work and what's best for your shopping style.
I think both platforms are an easy, straightforward way to save more money every year.
Just note: neither Ibotta or Rakuten will make you rich or significantly increase your income; these are money-saving tips, not side hustle ideas.
With that said, I hope using Ibotta and Rakuten help you keep more of your hard-earned money the next time you shop in-store or online!
Catch you guys in the next one.
Looking for other easy ways to earn rewards for shopping? Checkout:
- How To Earn $25 Instantly.
- Is Capital One Shopping Legit?
- The Best Game Apps That Pay Instantly To PayPal.
