Rakuten vs. Honey: A Comprehensive Comparison of Popular Cash Back and Coupon Platforms

Introduction

In today’s digital age, saving money while shopping online has become increasingly accessible thanks to various cash back and coupon platforms. Two of the most popular services in this space are Rakuten and Honey. Both platforms promise to help users save money, but they do so in slightly different ways. This article will provide an in-depth comparison of Rakuten and Honey, highlighting their features, advantages, and disadvantages to help you decide which service is best suited for your shopping habits.

Overview of Rakuten

Rakuten, previously known as Ebates, is a cash back and shopping rewards platform that allows users to earn cash back on purchases made through their affiliate links. Founded in 1998, Rakuten partners with thousands of retailers across various categories, including fashion, electronics, travel, and more. Here’s a closer look at its key features:

Key Features of Rakuten

1. Cash Back Rewards: Users earn a percentage of their purchase amount as cash back when shopping through Rakuten’s links.
2. Wide Range of Retailers: Rakuten partners with over 2,500 retailers, including popular names like Amazon, Walmart, and Macy’s.
3. Browser Extension: Rakuten offers a browser extension that alerts users to available cash back opportunities and applies coupon codes automatically at checkout.
4. In-Store Cash Back: Users can also earn cash back when shopping in physical stores by linking their credit or debit card to their Rakuten account.
5. Referral Program: Users can earn additional cash back by referring friends to Rakuten.
6. Payment Options: Cash back payments are made quarterly via check or PayPal.

Overview of Honey

Honey is primarily known as a coupon and deal-finding tool that helps users save money by automatically applying the best available coupon codes at checkout. Founded in 2012, Honey also offers a cash back program called Honey Gold. Here’s an overview of its main features:

Key Features of Honey

1. Coupon Finder: Honey’s browser extension automatically searches for and applies the best coupon codes available for your online purchase.
2. Honey Gold: Users earn Honey Gold points on eligible purchases, which can be redeemed for gift cards at popular retailers.
3. Droplist: This feature allows users to add items to a watchlist and get notified when the price drops.
4. Price History: Honey provides historical price data for products, helping users make informed purchasing decisions.
5. Wide Range of Retailers: Honey works with thousands of online stores, including major retailers like Amazon, Target, and Best Buy.
6. Referral Program: Users can earn Honey Gold by referring friends to Honey.

Comparing Rakuten and Honey

Cash Back and Rewards

• Rakuten: Offers straightforward cash back on purchases, with earnings paid out quarterly via check or PayPal. The cash back percentages can vary greatly depending on the retailer and any ongoing promotions.
• Honey: Provides Honey Gold points on eligible purchases, which can be redeemed for gift cards. The points system can be less transparent than Rakuten’s cash back percentages, and it may take longer to accumulate enough points for a meaningful reward.

Coupon Codes

• Rakuten: While Rakuten does offer some coupon codes, its primary focus is on cash back. The browser extension can automatically apply available coupons, but this feature is not as robust as Honey’s.
• Honey: Excels at finding and applying the best coupon codes automatically, often resulting in immediate savings at checkout.

Browser Extension and User Experience

• Rakuten: The browser extension is user-friendly and efficiently alerts users to cash back opportunities and available coupons. However, it requires users to shop through Rakuten’s links to earn rewards.
• Honey: Honey’s browser extension is highly effective at finding coupon codes and also provides additional features like Droplist and price history. It integrates seamlessly into the shopping experience without the need for users to follow specific links.

Additional Features

• Rakuten: Offers in-store cash back, which is a valuable feature for those who prefer shopping in physical stores. The referral program also provides substantial cash bonuses.
• Honey: The Droplist and price history features are unique to Honey and add significant value for deal-hunters. The referral program rewards users with Honey Gold, which can be redeemed for gift cards.

Conclusion

Both Rakuten and Honey offer valuable tools for saving money while shopping online, but they cater to slightly different needs:

• Rakuten is ideal for users who prefer earning cash back on their purchases and are comfortable shopping through specific links. Its in-store cash back feature is also a significant advantage for those who shop offline.
• Honey is perfect for users who want a seamless, automated coupon-finding experience and appreciate additional tools like price tracking and historical data.

Ultimately, the best choice depends on your shopping habits and preferences. For the maximum savings, many savvy shoppers use both platforms in tandem to ensure they never miss out on cash back or coupon opportunities.