Rakuten vs Honey – Which Is Better for Online Shopping in 2026?

If you shop online regularly, Rakuten and PayPal Honey can both help you save money — but they work differently.

Rakuten is primarily a cashback shopping platform, while PayPal Honey is best known for automatically searching for coupon codes and also provides eligible shopping rewards.

Quick answer: Rakuten is generally the better fit if your main goal is earning cash back from eligible online purchases. PayPal Honey may be more useful if your priority is automatically searching for coupon codes at checkout. The better choice depends on the retailer and offer available when you shop.

Rakuten vs Honey at a Glance

Feature Rakuten PayPal Honey
Main Purpose Cash back Coupon finding & shopping rewards
Automatic Coupon Search Not its primary feature Yes
Cashback / Rewards Cash back at participating stores PayPal Rewards on eligible offers
Browser Extension Yes Yes
Best For Cashback shoppers Finding coupon codes

What Is Rakuten?

Rakuten is an online cashback shopping platform. Shoppers start with Rakuten or activate an eligible cashback offer before completing a purchase at a participating retailer.

When an eligible transaction tracks and is confirmed, the shopper earns cash back based on the offer available at the time of purchase.

See Rakuten Cashback & Sign-Up Offer Details →

Rakuten Pros

  • Cash back at participating retailers
  • Large selection of online stores
  • Browser extension available
  • Special increased cashback promotions may be available
  • Useful for purchases you were already planning to make

Rakuten Cons

  • Cashback percentages vary by retailer
  • Not every purchase or product qualifies
  • Cash back must successfully track and be confirmed
  • Payments follow Rakuten's payment schedule rather than arriving immediately after each purchase

What Is PayPal Honey?

PayPal Honey is a shopping browser extension best known for searching for available coupon codes while you shop online.

At participating stores, Honey can test available coupon codes during checkout. Eligible shopping offers may also provide PayPal Rewards.

View PayPal Honey Savings & Reward Details →

PayPal Honey Pros

  • Automatically searches for available coupon codes
  • Can test multiple codes at checkout
  • Browser extension makes it easy to use while shopping
  • PayPal Rewards may be available on eligible purchases
  • Useful for shoppers who frequently search for promo codes

PayPal Honey Cons

  • A working coupon is not guaranteed
  • Available codes vary by retailer
  • Rewards are not available on every purchase
  • The best available code may sometimes already be offered directly by the retailer

Which Is Better for Cashback: Rakuten or Honey?

If earning cashback is your main priority, Rakuten is the more cashback-focused platform.

Rakuten is built around activating cashback offers from participating retailers before shopping. PayPal Honey can provide rewards on eligible purchases, but coupon discovery remains one of its primary shopping features.

Cashback and reward rates change, so compare the offers available for the specific retailer before completing a purchase.

Which Is Better for Coupon Codes?

PayPal Honey has the advantage for automatic coupon searching.

Instead of manually searching the internet for promo codes, Honey can test available codes during checkout at supported retailers.

That does not mean Honey will always find a working discount. Coupon availability depends on the store and promotions available at that time.

Can You Use Rakuten and Honey Together?

You can have accounts with both services and compare them when you shop.

However, be careful about activating multiple shopping or rewards extensions during the same transaction. Cashback tracking often depends on which shopping service generated or received credit for the purchase.

A safer strategy is to compare the available savings first and then use the service you want credited for that particular transaction.

Rakuten vs Honey: Which Should You Choose?

Consider Rakuten if:

  • Your main goal is earning cash back.
  • You frequently shop at participating online retailers.
  • You are willing to activate cashback before buying.
  • You don't need your reward immediately.

Consider PayPal Honey if:

  • You frequently search for coupon codes.
  • You want codes automatically tested at checkout.
  • You like browser-based shopping tools.
  • You want access to eligible PayPal Rewards offers too.

Consider having both if:

  • You want to compare the available savings before each purchase.
  • You understand that you should be careful about competing tracking during the same transaction.

How to Save More When Shopping Online

  1. Check the retailer's current sale price first.
  2. Compare available cashback and rewards offers.
  3. Look for an eligible coupon or promo code.
  4. Read exclusions before making a large purchase.
  5. Choose which cashback or rewards service you want to use before checkout.
  6. Keep your order confirmation until rewards have tracked correctly.

Other Cashback & Shopping Apps to Compare

Rakuten and Honey aren't the only options. Depending on where you shop, another cashback or shopping service may have a better offer.

Compare the Best Cashback Apps for Online Shopping →

Rakuten vs Honey FAQ

Is Rakuten better than Honey?

It depends on what you want. Rakuten is more focused on cashback shopping, while PayPal Honey is particularly useful for automatically searching for coupon codes.

Does Honey still have Honey Gold?

Honey Gold was renamed PayPal Rewards. Older articles may still refer to the program as Honey Gold.

Does Rakuten automatically find coupon codes?

Rakuten may display coupons and promotions, but its main attraction is cashback at participating retailers. PayPal Honey is more specifically designed around automatically testing coupon codes.

Can I have both Rakuten and Honey installed?

Yes. You can have both shopping tools, but activating competing rewards services during the same purchase can affect tracking. Compare your options before checkout and choose the service you want to use for that transaction.

Which one saves the most money?

There is no universal winner because cashback percentages, rewards and coupon codes change by retailer and purchase. Comparing the current offers before buying is the best approach.

More Cashback & Shopping Guides

Disclosure: This page may contain referral links. I may receive a referral reward when an eligible user joins or completes a qualifying purchase through one of my links, at no additional cost to you. Cashback rates, coupons, rewards and eligibility requirements can change.

Last updated: August 2026.