Rakuten and Ibotta are the two biggest cashback apps in the US. But which one actually pays more? We used both for 6 months to find out.
The short answer: it depends on how you shop. Rakuten wins for online shopping. Ibotta wins for groceries. The real winner? Using both strategically.
We tracked every dollar earned from both apps over 6 months with normal shopping habits. Here's everything you need to know to maximize your cashback earnings.
Add Location Rewards to Your Cashback Stack
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Quick Comparison: Rakuten vs Ibotta
| Feature | Rakuten | Ibotta |
|---|---|---|
| Best For | Online shopping | Grocery shopping |
| Cashback Type | Percentage of purchase | Per-item offers |
| Average Cashback | 1-10% (up to 40% promos) | $0.25-$5 per item |
| Payout Minimum | $5.01 | $20 |
| Payout Speed | Quarterly | Typically within 24 hours (after eligibility) |
| Payout Methods | PayPal, Check | PayPal, Venmo, Gift Cards |
| Effort Required | Very low (activate & shop) | Medium (select offers, scan) |
| Partner Stores | 3,500+ online retailers | 300+ grocery/retail stores |
How Rakuten Works
Rakuten is simple: activate cashback before shopping online, and you get a percentage back on your purchase.
The process: Install the browser extension (or use the app), shop at any of 3,500+ partner stores, and the extension automatically activates cashback. Cashback appears in your account (often as pending first), then you get paid quarterly via PayPal or check.
The good: Extremely low effort with a set-it-and-forget-it approach. Works with major retailers like Walmart, Target, and Macy's. You'll see high promo spikes during holidays and events. The $5.01 minimum payout is reachable for most users, and the browser extension makes activation close to automatic.
The bad: Quarterly payouts mean you may wait up to 3 months. It's primarily focused on online shopping. Some stores have low rates (1-2%), and cashback can be reversed if you return items.
How Ibotta Works
Ibotta requires more effort, but rewards you for everyday grocery shopping with per-item cashback.
The process: Browse offers before shopping and add the ones you want to your list. Shop at partner stores, then scan your receipt (or link your loyalty account where available). Cashback gets credited after verification, and you can cash out after you qualify and hit $20 via PayPal, Venmo, or gift cards.
The good: Works for in-store grocery shopping with high per-item savings on specific products. Fast cashouts once you're eligible, plus bonuses for completing offer sets. Works at 300+ retailers including Walmart, Target, and CVS.
The bad: Requires planning since you must add offers before shopping. The $20 minimum is higher than Rakuten. Offers expire and change frequently, which can push you to buy things you don't need. Receipt scanning can fail sometimes.
Real Earnings: 6-Month Test
We tracked every dollar earned from both apps over 6 months with normal shopping habits (no gaming the system).
Our shopping profile: ~$400/month online shopping, ~$600/month groceries, and occasional retail purchases.
| Metric | Rakuten | Ibotta |
|---|---|---|
| 6-Month Earnings | $127.45 | $168.30 |
| Monthly Average | $21.24 | $28.05 |
| Time Spent | ~2 min/month | ~30 min/month |
| Effective Hourly Rate | $637/hr | $56/hr |
| Effort Level | Almost zero | Moderate |
Key insight: Ibotta earned more total dollars, but Rakuten's time-to-earnings ratio is dramatically better. Rakuten is truly passive; Ibotta requires active engagement.
This approach of maximizing returns with minimal effort is what we call getting paid for your attention. Cashback is just one piece of the puzzle. Understanding how different reward models work helps you build a more complete earning strategy.
When to Use Each App
When to Use Rakuten
Rakuten is the clear winner if you shop online frequently, want low-effort cashback, don't mind quarterly payouts, shop at major online retailers, and value your time highly.
Best Rakuten categories: Electronics, clothing, travel bookings, software subscriptions, and home goods.
When to Use Ibotta
Ibotta wins if you do most shopping in physical stores, buy groceries weekly, don't mind spending a few minutes planning, want faster access to your money once eligible, and are willing to be flexible on brands.
Best Ibotta categories: Groceries, household supplies, personal care, baby products, and pet supplies. For more on maximizing grocery savings, check our guide to receipt scanning apps.
The Real Answer: Use Both
Here's what most comparison articles miss: Rakuten and Ibotta don't compete, they complement each other.
The optimal stack: Use Rakuten for online shopping (install the extension and forget it), Ibotta for grocery runs (check offers before your weekly shop), credit card cashback on top of both (they stack), and store loyalty programs for additional points.
Combined earnings potential: $40-$80/month with normal shopping habits. Want more options? Check our guide to the best cashback apps for a complete comparison of all major players.
For a broader look at earning apps beyond cashback, see our guide to apps that actually pay money. You can also explore no-risk money making apps that don't require any spending.
Stack Location Rewards With Your Cashback
Already using Rakuten and Ibotta? Add another layer. VISU rewards you for places you already visit.
Quick video. Earn your first reward.
Rakuten vs Ibotta: Feature Deep Dive
Payout Speed
Winner: Ibotta. Ibotta can cash out quickly once you meet eligibility and hit the $20 minimum. Rakuten pays quarterly (February 15, May 15, August 15, November 15). If your cashback isn't confirmed by the cutoff, it rolls into the next payout window.
Ease of Use
Winner: Rakuten. Rakuten's browser extension can activate automatically. Ibotta requires browsing offers, adding them, and scanning receipts or linking accounts.
Earning Potential
Winner: Depends. High online spenders often earn more with Rakuten. Grocery-focused shoppers often earn more with Ibotta. Most people earn more total by using both.
Store Coverage
Winner: Rakuten (online), Ibotta (in-store). Rakuten covers thousands of online stores. Ibotta focuses on physical retailers and grocery partners. Different use cases entirely.
Minimum Payout
Winner: Rakuten. $5.01 minimum vs $20. Easier to reach a payout with Rakuten, even with the quarterly schedule.
Common Mistakes to Avoid
With Rakuten: Forgetting to activate cashback (use the browser extension), shopping through other affiliate links (can cancel tracking), not checking bonus cashback promotions, and assuming all stores have good rates (some are only 1%).
With Ibotta: Buying products just because there's an offer, forgetting to add offers before shopping, not linking loyalty accounts where available, and ignoring bonus offers that multiply earnings.
Alternatives Worth Considering
If neither Rakuten nor Ibotta fits your style, consider these options:
Fetch Rewards lets you scan any receipt with no offer selection needed. Lower earnings but very low effort. See our receipt apps guide for more details.
Dosh links to your card for automatic cashback. It's passive but often has lower rates than active apps.
Shopkick earns you points for walking into stores and scanning products. Great for store visit rewards without buying anything.
Honey auto-applies coupon codes at checkout. It complements Rakuten well since they serve different purposes.
For even more earning options that don't require purchases, explore passive income apps that work in the background.
The Verdict
Use Rakuten if: You shop online and want low-effort cashback.
Use Ibotta if: You grocery shop in-store and don't mind planning for higher per-item savings.
Use both if: You want to maximize cashback on all your shopping (recommended).
The real secret? Neither app alone will make you rich. But combined with other passive income apps and a solid cashback credit card, you can realistically earn $100-$150/month from shopping you'd do anyway.
Complete Your Rewards Stack
Cashback is just the start. Add location rewards and earn from places you already visit.
Quick video. Earn your first reward.
FAQ: Rakuten vs Ibotta
Can I use Rakuten and Ibotta together?
Yes. They track different things. Rakuten tracks online purchases through their links, Ibotta tracks specific products via receipts or linked accounts. Using both in the same week (or even the same overall shopping routine) is normal and recommended.
Which app has better customer support?
Both have decent support. Rakuten often resolves tracking issues faster. Ibotta can take longer when receipt verification or offer matching is involved.
Do these apps sell my data?
Both collect shopping data and share aggregated (anonymized) insights with brands and retailers. This is part of how cashback ecosystems work. If this concerns you, read each app's privacy policy.
Why did my Rakuten cashback disappear?
Common reasons: you returned the item, used another affiliate link, the store reversed the commission, or a coupon code conflicted with terms. Contact support with your order confirmation.
Is Ibotta worth the effort?
If you grocery shop weekly and don't mind spending a few minutes checking offers, yes. If you hate planning or rarely buy groceries, Rakuten's low-effort approach will feel better.
What's better for Amazon shopping?
Amazon is inconsistent with third-party cashback offers. If cashback matters most for Amazon, a dedicated credit card often beats most apps. For non-Amazon online shopping, Rakuten is usually stronger.