How Does Ibotta Work, And Does It Really Save You Money?
If you're looking to cut expenses while shopping online or at the grocery store, you might have discovered free cashback apps that offer cash rewards when shopping with large retailers. Ibotta is one of many apps that lets you scan receipts and get your money back. You can claim cashback from many of its trusted brands, including Amazon, Target, and Costco. But does it actually work? And what do users have to say?
Ibotta promises a simple process for its users to save on weekly shopping. Before heading out, you can select any offers that interest you from the Ibotta app. Next, after keeping proof of purchase, you can head back to the app to upload your receipt. Once uploaded, you'll receive cashback instantly displayed on your account. This relatively straightforward principle has attracted buyers in need of a bargain and has generated a user base of millions.
Ibotta has a lot to promise, including instant cashback, bonus rewards, and a range of great offers, making it one of the best money-saving apps for Android and iOS. But is there a catch? Let's delve into how Ibotta works, how it makes its money, and whether it can save you money in the long run.
What is Ibotta?
Ibotta is available as a free app or web extension to earn cashback when shopping with retailers. While most of the rewards are for grocery shopping, you can also receive cashback for electronics and clothes. The company has partnered with major retailers including Walmart and Home Depot and has provided American consumers with over $1.6 billion of incentives since it was founded in 2011, according to its official website.
The company uses the Ibotta Performance Network (IPN) to distribute incentives to consumers. The network uses pay-per-sale advertising to help brands influence consumers' buying choices. Every day, the IPN delivers over 900 new digital offers across a broad range of retailers. You can explore a full list of partnered retailers on Ibotta's official website.
Founded in 2011, by 2017 the company had become the third most-used cashback app in the U.S., with 22 million total downloads. The Ibotta Performance Network claims to have made over $2,500 of daily savings for its partnered retailers and paid out $860 million for consumers in cashback rewards. These numbers look impressive on paper, but how easy is it to get started?
How does Ibotta work?
There are two ways to use Ibotta to save on your general shopping. You can download the Ibotta app (available on Google Play and the App Store), or you can install the Ibotta Chrome extension. As a new customer, you can take advantage of the app's $20 sign-up bonus. You'll find plenty of additional bonuses that appear over time in the "Earn More" tab in the app.
After a simple sign-up process, you're guided to select your favorite retailers so you can receive personalized offers from the app. Now, you can explore the wide range of offers from Ibotta's homepage. The homepage is split into the sections "What's Hot", "Best Value", and "Buy It Again" for extra convenience. There's also a search bar, so you can explore any offers for specific items you need to buy. Redeeming offers is as simple as uploading receipts from your grocery shop. You can also redeem offers without a receipt by creating a loyalty account.
Unlike some finance apps that have a $50 minimum cash-out, you can deposit money to your bank account once your balance reaches $20. This means you don't have to use the app for long to start reaping the benefits. Ibotta also lets you combine coupons (which is rarely seen in competing apps), so you can maximize your savings.
Can Ibtotta save you money?
At first glance, Ibotta offers a tempting range of offers to save a great deal of cash when shopping. But what do its users have to say? Ibotta has mixed reviews on Trustpilot, with a rating of 3/5 stars. Some users claim that some offers are not always as they seem. That being said, Ibotta isn't a scam website — it's trusted by hundreds of retailers through the Ibotta Performance Network.
With a sea of cashback offers for consumers, you may be wondering how Ibotta makes its money. In addition to affiliate commissioning, Ibotta makes money by selling transactional data to other brands. This data then helps companies look at what people are buying to plan future marketing campaigns. While this data is non-personal and anonymous, it's worth keeping in mind if you're uncomfortable with companies selling your data.
Another way to make money in Ibotta is by referring a friend. Using a unique referral code, you'll receive a cash reward after a friend redeems an offer for the first time. Whether you're claiming bonuses, snatching recent offers, or getting instant cashback with a loyalty card, Ibotta offers a smart way to save on your weekly shopping.