Honey vs. Rakuten: Which Cashback Service Is Better?
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When it comes to saving money while shopping online, cashback and coupon services like Honey and Rakuten have become household names. But which one offers better deals, more convenience, and greater savings? Let’s dive into a detailed comparison to help you decide which service to use for your next shopping spree.
Disclaimer
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Overview of Honey
Honey, a browser extension owned by PayPal, is primarily known for its ability to automatically apply coupon codes at checkout. It also offers a cashback feature called “Honey Gold,” which can be redeemed for gift cards.
Key Features of Honey:
- Automatic Coupon Finder: Honey scans the web for the best available promo codes and applies them at checkout.
- Honey Gold Cashback: Users earn Honey Gold points for purchases, which can be redeemed for gift cards.
- Price Tracking: Honey’s Droplist feature tracks price drops on selected items.
- User Experience: Easy to install and use on major browsers like Chrome, Firefox, and Edge.
Pros of Honey:
- Automatically applies coupon codes, saving time.
- Offers cashback in the form of redeemable points.
- Free to use with a seamless browser integration.
- Works on thousands of online stores.
Cons of Honey:
- Cashback is limited to gift cards rather than direct cash payouts.
- Coupons don’t always work, depending on the store.
- Smaller selection of cashback stores compared to Rakuten.
Overview of Rakuten
Rakuten, formerly known as Ebates, is a more traditional cashback service that offers direct cash payments for shopping at participating retailers. Users can shop through the Rakuten website or app to earn cashback on their purchases.
Key Features of Rakuten:
- Cashback Offers: Earn a percentage of your purchase amount as cashback when shopping through Rakuten.
- Direct Payments: Cashback is paid out via PayPal or check.
- Referral Program: Users can earn additional bonuses by referring friends.
- Wide Retailer Network: Rakuten partners with thousands of stores, including big names like Walmart, Macy’s, and Best Buy.
Pros of Rakuten:
- Offers direct cashback payouts via PayPal or check.
- Has a larger network of partner stores.
- Provides regular bonus cashback deals.
- Available as both a browser extension and mobile app.
Cons of Rakuten:
- Requires users to start their shopping journey through Rakuten’s portal.
- No automatic coupon application feature.
- Some cashback payouts can take time to process.
Comparing Honey and Rakuten
| Feature | Honey | Rakuten |
|---|---|---|
| Cashback Type | Gift cards | Direct cash payments |
| Coupon Finder | Yes | No |
| Price Tracking | Yes | No |
| Retailer Network | Thousands of stores | Larger network |
| Payout Method | Gift cards | PayPal or check |
| User Experience | Automatic at checkout | Requires shopping through portal |
Which One Should You Use?
The choice between Honey and Rakuten largely depends on your shopping habits and preferences:
-
Choose Honey if:
- You frequently look for coupon codes to save money.
- You prefer a more automated experience.
- You don’t mind receiving cashback in the form of gift cards.
-
Choose Rakuten if:
- You prefer direct cashback payouts via PayPal or check.
- You shop at major retailers that partner with Rakuten.
- You’re willing to start your shopping trips through a cashback portal.
Can You Use Both?
Yes! Many savvy shoppers use both services to maximize their savings. For example, you can use Rakuten to earn cashback and then use Honey to find additional coupon codes at checkout.
Final Verdict
Both Honey and Rakuten are excellent tools for saving money online. Honey excels at finding coupons and offering a seamless user experience, while Rakuten is better for those who want direct cashback payouts. Depending on your needs, you can choose one or use both to get the best of both worlds.