They're Not Really Competing at the Same Thing
Honey and Rakuten both sit in your browser and promise to save you money. But they work differently, and understanding that difference determines which one you'll actually get value from.
Honey's main thing is coupon codes. It automatically tries codes at checkout and applies the best one. It also has a cashback program called Honey Gold, but the rates are low and the redemption process is clunky. PayPal bought Honey in 2020 for $4 billion, and since then, it's become more integrated with PayPal's ecosystem.
Rakuten is cashback first. You activate a deal through the Rakuten extension or site, shop at a partner retailer, and get a percentage back in cash. The rates are often genuinely good -- 5-15% at a lot of major retailers, sometimes higher with stacked promotions.
Cashback Rates Compared
On Amazon specifically, Honey Gold gives you "Gold" points that convert to PayPal cash at roughly 1,000 points = $10. So you need to rack up points to see real money. Rakuten doesn't offer cashback on Amazon at all -- Amazon doesn't participate in cashback programs.
Where Rakuten shines is everywhere else. At checkout, I regularly see:
- Nike.com: 5-8% back
- Macy's: 6-10% back
- Walmart.com: 1-3% back
- Best Buy: 1-2% back (during promotions, sometimes 5%+)
- Chewy: 3-5% back
- Hotels.com: 4-6% back
Honey's Gold rates on those same sites are lower across the board. I've seen Honey offer 1% Gold where Rakuten was offering 8% real cash. That's not a close comparison.
Coupon Code Success Rates
This is where Honey is supposed to be strong, and it is -- sometimes. The extension tests codes automatically and applies the best one, which saves you from manually searching for codes. It works maybe 60-70% of the time at major retailers. At smaller sites, it either finds nothing or finds expired codes.
Rakuten doesn't really compete here. Some Rakuten deals include coupon codes, but that's secondary to the cashback.
If you shop at places where coupons matter (clothing retailers, specialty stores), Honey adds genuine value. If your shopping is mostly Amazon and big box stores, coupon codes are rarely a thing and Honey's advantage evaporates.
Privacy -- This Part Matters
Both extensions track your shopping behavior. That's the deal. Honey tracks every retailer you visit and every purchase you make. PayPal owns that data now.
Rakuten also tracks purchases at partner retailers. Slightly more limited, since it only activates when you click through a deal, but still -- your purchase data is going to a third party.
There have been reports that Honey was hijacking affiliate commissions from creators by replacing their affiliate cookies with Honey's own. If you care about supporting creators who recommend products, that's worth knowing. Rakuten doesn't have the same allegation.
Can You Use Both at Once?
Yes, and I do. They don't technically conflict, but there can be cookie-stuffing issues where one extension's affiliate tracking overwrites the other's. The safe approach: decide which one you want to get credit for a given purchase and make sure it's the active one at checkout.
My workflow: Rakuten for cashback at non-Amazon retailers (it's almost always better). Honey as a backup for coupon codes when I'm buying somewhere that doesn't have Rakuten cashback.
Payout Schedules
Rakuten pays quarterly -- February, May, August, and November. You get a physical check or PayPal deposit. Minimums apply ($5.01 threshold). You'll wait up to three months to see your cashback, which is annoying but predictable.
Honey Gold accrues faster in theory, but you need 1,000 points ($10 equivalent) to redeem, and points expire if your account is inactive. The PayPal integration means redemption is smooth once you hit the threshold, but actually earning meaningful Gold takes a while unless you're shopping constantly.
Real talk: I've earned over $200 in Rakuten cashback in a year of normal shopping without doing anything special. My Honey Gold balance is perpetually stuck around 400 points. Rakuten is the serious tool here.