Rakuten vs. Honey: Differences and Similarities Explained
In today’s world of online shopping, finding a way to save money while making purchases is almost as satisfying as getting the product itself. Two popular tools that help you do just that are Rakuten and Honey. Both services offer ways to save, but they do so in different ways and have unique features that cater to different types of shoppers. In this blog post, we’re diving into the similarities and differences between Rakuten and Honey to help you decide which one (or maybe both) is right for you.What is Rakuten?
Rakuten, formerly known as Ebates, is a cashback service that partners with thousands of online retailers. It gives you a percentage of your purchase back in the form of cash rebates. Rakuten has both a website and a browser extension, making it easy to activate cashback offers when shopping online. You can also get cashback on in-store purchases by linking your credit card to the Rakuten app.The process with Rakuten is straightforward: you start your shopping through the Rakuten website or app, click on the retailer you want to shop at, and Rakuten will track your purchase to give you cashback later. It’s a great way to passively earn some money back on purchases you were already planning to make.
What is Honey?
Honey is a coupon-finding tool that works through a browser extension. Honey automatically searches for and applies coupon codes during checkout at thousands of online stores. This saves you time and money without having to hunt down discount codes yourself. Honey also has a feature called "Honey Gold," which is similar to Rakuten's cashback system. Honey Gold lets you earn points, which can then be redeemed for gift cards.Honey focuses more on finding instant discounts and deals for shoppers, while cashback rewards through Honey Gold are a secondary feature. It is popular among people who want the immediate satisfaction of seeing their total drop before they pay.
Differences Between Rakuten and Honey
1. How You Save Money
-Rakuten: Cashback on purchases. You get a percentage of the purchase price back, usually paid out via PayPal or check every few months.-Honey Primarily through coupon codes. Honey automatically applies available discount codes during checkout, and you can also earn "Honey Gold" points, which can be redeemed later.
2. Payout Method
-With Rakuten you receive your cashback through PayPal or by check, typically on a quarterly basis. You need to reach a minimum payout threshold (usually around $5) before receiving a payment.-Honey does not pay you directly with cash unless you consider the gift cards from Honey Gold rewards. The savings come in the form of discounted purchases via coupon codes.
3. Shopping Process
-Rakuten requires you to start shopping through its portal or activate cashback via the browser extension before making a purchase.-Honey automatically kicks in when you're at checkout and starts searching for discount codes, making it a more integrated part of the shopping experience without needing any extra steps beforehand.
4. Partner Retailers
-Rakuten has a vast network of partner stores and covers a wide range of categories, including travel bookings, where you can earn cashback.-Honey works with a different, though still extensive, set of retailers but doesn't always guarantee the presence of discount codes or cashback options for every store.
Similarities Between Rakuten and Honey
1. Browser Extensions
Both Rakuten and Honey offer browser extensions that make the savings process easier and more seamless. You can install these extensions on browsers like Chrome, Firefox, and Safari to get notifications when you’re on a site with potential savings.2. Savings on Online Shopping
The main similarity between these two services is that they both help you save money on online shopping. Whether it’s cashback or discount codes, Rakuten and Honey allow you to save more on purchases you already plan to make.3. Free to Use
Rakuten and Honey are both completely free to use, meaning you don’t need to pay anything upfront to start saving money. You simply sign up for an account and can start using the tools immediately.4. Mobile Accessibility
Both platforms are available on mobile. Rakuten has an app that makes it easy to activate cashback deals while shopping on your phone, and Honey has a mobile version of its browser extension that can apply coupons to your mobile purchases.Which One Should You Use?
It really comes down to personal preference and shopping habits. If you’re someone who likes to plan ahead and doesn’t mind waiting a bit for your savings, Rakuten is a great choice. Its cashback can be pretty generous, especially for bigger purchases like travel bookings.
On the other hand, if you’re a bargain hunter who enjoys the instant thrill of watching your cart total go down, Honey will be more up your alley. The automatic coupon search is a handy tool that saves you time and effort.
And there’s no rule saying you have to pick just one! Since Rakuten focuses on cashback and Honey finds coupon codes, you could even use both together. For example, you could activate Rakuten cashback before shopping and let Honey find any applicable coupon codes during checkout. This way, you get the best of both worlds—cashback plus instant discounts.
Conclusion
Rakuten and Honey are both excellent tools for saving money while shopping online, but they do it in different ways. Rakuten is all about earning cashback on your purchases, while Honey focuses on applying coupon codes for immediate savings. Both are free, easy to use, and accessible across different devices, so why not give them both a try? With a little bit of extra effort, you could maximize your savings and make online shopping that much sweeter.