What Are Cashback Apps?
Cashback apps reward you for purchases you're already making — groceries, clothing, travel bookings, online shopping, and more. Instead of a discount upfront, you receive a percentage of your spending back as cash, gift cards, or points. Used consistently, these apps can add up to meaningful savings over the course of a year without changing your spending habits.
Types of Cashback Apps
Not all cashback apps work the same way. There are three main categories:
- Receipt-scanning apps (e.g., Ibotta, Fetch Rewards): You scan your grocery or retail receipts after shopping to claim offers.
- Browser extension apps (e.g., Rakuten, Honey): These activate automatically when you shop online, applying codes or earning cashback through the browser.
- Credit card cashback programs: Your card earns a percentage back on all purchases — some cards offer higher rates for specific categories like groceries or gas.
Top Cashback Apps Worth Using
Rakuten (formerly Ebates)
Rakuten is one of the most established cashback services. It works as a browser extension and a standalone app, offering cashback at hundreds of online retailers. Simply activate Rakuten before shopping online and the cashback is credited automatically. Payouts come quarterly via PayPal or check.
Ibotta
Ibotta focuses primarily on groceries and household items. Before shopping, you browse available offers and "add" them to your account. After shopping, you scan your receipt or link your loyalty card to claim the cashback. It works at most major grocery chains and many big-box retailers.
Fetch Rewards
Fetch Rewards takes a simpler approach — just scan any grocery receipt and earn points regardless of what you bought, with bonus points for featured brands. Points can be redeemed for gift cards from popular retailers.
Honey (PayPal)
Honey is a browser extension that automatically searches for and applies coupon codes at checkout when shopping online. It also has a cashback feature called "Honey Gold" that earns points at select retailers, redeemable for gift cards.
Capital One Shopping
Similar to Honey, Capital One Shopping automatically finds and applies promo codes at checkout. It also alerts you to price drops and tracks price history — useful for knowing when a "deal" is genuinely lower than usual.
How to Get the Most From Cashback Apps
- Stack cashback apps with store coupons. Using Rakuten or Ibotta on top of a store sale multiplies your savings.
- Always activate offers before purchasing. Most apps don't allow retroactive cashback claims.
- Use multiple apps strategically. Some apps work better for groceries, others for online shopping. Using the right tool for each purchase maximizes returns.
- Link loyalty cards where possible. Apps like Ibotta link directly to store loyalty accounts, making redemption automatic without receipt scanning.
- Redeem regularly. Don't let cashback or points sit unused — some programs have expiration policies on inactive accounts.
What to Realistically Expect
Cashback apps are a supplement to good money habits, not a replacement. A consistent user who runs all grocery receipts through Ibotta, shops online through Rakuten, and uses a rewards credit card could realistically earn back a few hundred dollars annually — effectively for free. The key word is consistent: occasional use yields occasional rewards, but building it into your routine compounds over time.
Start with one or two apps that match your most common spending categories, get comfortable with the workflow, then layer in additional tools gradually. Small habits, practiced consistently, add up to real savings.