In today’s digital age, we are all looking for ways to save money while shopping online. Whether you’re purchasing groceries, clothes, gadgets, or booking travel, cashback and rewards programs are becoming increasingly popular.
One such platform that has made a significant mark in this area is Rakuten, an e-commerce giant that originated in Japan but has gained widespread use in countries like the U.S.
The Rakuten app promises cashback rewards for everyday online shopping, but does it live up to the hype?
In this review, we’ll take a deep dive into the Rakuten app, how it works, its saving potential, cash-out methods, pros and cons, and ultimately, whether it’s worth using.
What is Rakuten?
Rakuten is an online shopping and cashback service that connects consumers with a vast network of partner retailers.
Founded in Japan in 1997, Rakuten has expanded globally, with a particularly strong presence in the U.S. The app allows users to earn cashback and rewards for making purchases at hundreds of popular online stores.
In essence, Rakuten works as a middleman between consumers and retailers. When users shop through Rakuten’s platform, they get a percentage of their purchase price back as cashback.
It’s a straightforward and simple way to save money while shopping for the things you need or want.
Rakuten also offers discounts, promo codes, and limited-time offers on various brands, making it a go-to app for savvy shoppers looking to maximize savings.
How Does Rakuten Work?
Using Rakuten is simple and intuitive, making it easy for users to start earning cashback. Here’s how it works step-by-step:
1. Download the Rakuten App:
The first step is to download the Rakuten app on your smartphone or visit their website on your desktop computer. The app is free to use, and signing up only takes a few minutes. You can sign up using your email address, Facebook, or Google account.
2. Browse the Store List:
Once you’ve logged in, you’ll see a list of thousands of online stores that partner with Rakuten. Some of the most popular stores include Walmart, Target, Macy’s, Best Buy, Home Depot, and Amazon. You can browse by categories like fashion, electronics, groceries, and travel to find the best cashback deals.
3. Shop Through Rakuten:
To earn cashback, you must make your purchase through the Rakuten app or website. When you find a store you want to shop from, you simply click on the link, which redirects you to the retailer’s page. From there, you can proceed with your purchase as you normally would. Rakuten tracks your purchase and credits your account with the cashback amount.
4. Earn Cashback:
After completing your purchase, Rakuten will credit your account with a certain percentage of your total order amount. The cashback percentage can range from 1% to 40%, depending on the retailer and the current promotion. Some retailers offer higher cashback rates during special sales events, such as Black Friday or holiday shopping seasons.
5. Cash Out:
Once your cashback accumulates in your Rakuten account, you can cash it out through PayPal or a physical check.
Overall Savings Potential
One of the most attractive features of Rakuten is the potential to earn significant savings on everyday purchases.
While the exact amount of cashback you earn will depend on the retailer and the ongoing promotions, Rakuten offers a wide range of stores, so you can accumulate cashback across many categories.
Here’s a look at the saving potential:
- Retail Partners: Rakuten partners with over 2,500 retailers across various categories, including fashion, electronics, home goods, beauty, health, travel, and more. This vast selection means that you can earn cashback on almost everything you buy online.
- High Cashback Rates: While cashback rates vary, Rakuten often offers 5-10% cashback for popular stores, with some retailers offering even higher rates. For example, you might see 10% cashback on a fashion retailer, or 4% on electronics. During special promotions or seasonal sales, these rates can spike, providing even more opportunities to save.
- Special Deals: Rakuten frequently offers additional deals, such as double cashback or limited-time promo codes, allowing users to maximize savings on specific products or categories.
- Travel Savings: Rakuten also provides cashback for bookings made through travel partners like Expedia, Hotels.com, and Priceline. This feature can be especially valuable for those planning vacations or business trips.
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5 Tips to Maximize Savings
While Rakuten is relatively easy to use, there are a few strategies you can implement to maximize your savings:
- Activate Cashback Before Every Purchase: Always check Rakuten before making a purchase. Even if you are buying from a retailer you visit frequently, logging into Rakuten can help you ensure you’re getting cashback on the purchase.
- Look for Special Promotions: Keep an eye on Rakuten’s special promotions, including holiday sales and double cashback events. These limited-time offers can significantly increase the cashback you receive.
- Stack Promo Codes: Rakuten frequently offers promo codes alongside cashback. Be sure to check for any available codes for the retailer you’re purchasing from and apply them during checkout to save even more.
- Use Rakuten’s Browser Extension: Rakuten offers a browser extension that notifies you when a cashback deal is available for a site you’re shopping on. This can help you earn cashback automatically without needing to remember to visit the Rakuten site first.
- Refer Friends: Rakuten offers a referral program where you can earn additional cashback by inviting friends to join. For each friend who signs up and makes their first purchase, you’ll earn a bonus.
Cash Out Methods and Minimum Thresholds
One of the most important aspects of any cashback app is how you can cash out your rewards. Rakuten offers two primary methods of cashing out your earnings:
- PayPal: This is the most popular option for users who prefer fast, digital payments. When you choose PayPal, Rakuten transfers your cashback directly to your PayPal account, which you can then withdraw to your bank account or use for future online purchases.
- Check: Rakuten also gives users the option to receive a physical check in the mail. This method can take a bit longer, but it’s an option for those who prefer not to use PayPal.
As for the minimum threshold, you must accumulate at least $5 in cashback before you can cash out.
If you don’t reach the $5 threshold by the end of the quarter, your cashback will roll over to the next quarter.
Rakuten issues cashback payments every three months (quarterly), so if you don’t cash out right away, you’ll need to wait until the next payout period.
Does Rakuten Pay Users?
Yes, Rakuten does pay users. However, it’s important to note that your cashback may take some time to process.
Once you make a purchase through Rakuten, your cashback will be “pending” for a few days or weeks while Rakuten confirms the transaction with the retailer.
After confirmation, the cashback will be credited to your account and available for payout.
Most users report that Rakuten reliably pays out cashback, though delays can occasionally happen, especially during peak shopping seasons like Black Friday or Christmas. Be patient and check your account regularly to ensure you don’t miss any cashback opportunities.
Pros:
- Wide Range of Retail Partners: With over 2,500 retailers, Rakuten offers a broad selection of stores across multiple categories, including fashion, electronics, travel, and more.
- High Cashback Rates: You can earn significant cashback, especially during special sales events and promotions.
- Simple to Use: The app is user-friendly, and earning cashback is a seamless process.
- Referral Program: Rakuten’s referral program is a great way to earn bonus cashback by inviting friends to join.
- Reliable Payments: Cashback is paid quarterly, and Rakuten offers multiple cash-out options, including PayPal and check.
Cons:
- Delayed Payments: Cashback is not always instantaneous, and it can take a few weeks before it’s available for cash-out.
- Not All Purchases Qualify: Some purchases may not qualify for cashback, such as certain exclusions or purchases made through third-party sellers.
- Limited Availability in Certain Countries: While Rakuten is widely available in the U.S. and Japan, it might not have as broad a reach in other regions.
Is Rakuten Worth Using?
If you regularly shop online and are looking for an easy way to save money, Rakuten is definitely worth using.
The app provides a simple, reliable way to earn cashback on your purchases, and with the vast number of retailer partnerships, you can maximize your savings across a variety of categories. Whether you’re buying everyday products or planning a big trip, Rakuten offers a valuable way to stretch your budget.
The biggest downsides—such as delayed payments and a minimum cashback threshold—are relatively minor when you consider the overall benefits. If you take advantage of Rakuten’s special promotions, referral program, and cashback opportunities, you can easily turn your everyday shopping into a rewarding experience.
In conclusion, Rakuten is a solid choice for cashback seekers, and if you haven’t already tried it, it’s worth checking out. The savings potential combined with the simplicity of use makes Rakuten one of the top cashback platforms on the market.