As consumers look for ways to stretch their budgets, approximately 160 million Americans turned to cashback apps last year, earning money on purchases made online and in-store.
These apps have gained significant traction as users seek out ways to maximize their savings while shopping. Among the most popular cashback apps are Rakuten, Ibotta, Fetch Rewards and Aisle.
Jackie Lam, a personal finance adviser and financial writer, highlights the advantages of cashback apps, explaining that users can earn cash back on expenses they would typically incur. Lam noted that the most downloaded apps include Rakuten and Ibotta, which can be beneficial if used wisely.
To utilize these apps, consumers download them on their phones, browse available offers and either shop online or snap a picture of their receipt for in-person purchases. Many apps also allow users to stack rewards, meaning they can apply coupons or other deals to further increase their savings.
While many consumers benefit from cashback opportunities, Lam cautions against catching “deal fever,” where excitement over deals leads people to make unnecessary purchases or spend beyond their budget. “So you might make a purchase that you don’t really need or it might be a little over your budget.”
In terms of potential earnings, Lam stated that Ibotta users can expect an average cash back return of about $250 a year, while Fetch users report earnings ranging from a few dollars to $100 a month. Users of Rakuten usually see annual earnings of approximately $300. Aisle users have indicated savings of about $50 a month in groceries, but it’s important to note that earnings will differ based on user habits and the specific app a consumer uses.
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