Cashback Apps Market

Cashback Apps Market Outlook

The global Cashback Apps market was valued at USD 3,373.2 Million in 2022 and is projected to reach USD 6,141.0 Million by 2031, expanding at a CAGR of 6.9 % during the forecast period. Cashback apps are becoming increasingly popular in online shopping and digitalized payment modes.

Users receive reward points or cashback when paid using specific cashback apps. These cashback apps can be used in various sectors such as retail & e-commerce, travel & hospitality, and dining & food delivery. Cashback apps offer opportunities to earn cash or reward points that can be redeemed later for coupons. The cashback apps can be used for in-store purchases as well as online purchases.

Macro-Economic Factors

Government Regulations

Government regulations are significant in the cashback app market. For example, the Reserve Bank of India (RBI) is the regulatory authority in India that governs the fintech sector in the country, including cashback apps. The RBI has established a specialized fintech department to promote innovation, identify issues & opportunities, and organize inter-regulatory & worldwide fintech cooperation. The RBI has also imposed controls on prepaid payment instruments (PPIs), which include gift cards, e-wallets, and vouchers. These regulations aim to ensure the safety and security of transactions conducted using these instruments.

In the US, cashback apps fall under the category of e-money and digital payment services, which are regulated by the Bank for International Settlements' Financial Stability Institute (FSI).

High Disposable Income

High disposable income is a macroeconomic factor that affects the cashback apps market positively. Disposable income is the amount of money that individuals or families have left over after paying taxes and other mandatory costs. This is the portion of income that can be freely spent on optional things or activities such as saving, enjoying leisure time, investing, and living costs that aren't always imposed, nevertheless are necessary to survive.

For instance, in the US, the average disposable income per capita is USD 59,262 for May 2023, which indicates that people in the US have high disposable income to spend on discretionary items.

Technological Advancement

The advancement in technology is a major factor influencing the cashback apps market. The incorporation of technologies such as Machine Learning (ML), Artificial Intelligence (AI), and the Internet of Things (IoTs) into cashback apps is creating new market opportunities.

These technologies allow for the automatic analysis of consumer purchasing behavior and the addition of payback or rewards points, which is anticipated to expand the reach of cashback apps in the coming years.

GDP

Gross domestic product (GDP) is an important factor affecting the cashback apps market. GDP has an impact on the purchasing power of consumers and represents the overall economic health of a nation. The global GDP in 2020 was estimated at USD 85.24 trillion, which was reduced by USD 2.0 trillion from the previous year.

The cashback apps market is part of the large financial technology (fintech) industry, which has been growing rapidly in recent years. The growth of the cashback apps market is influenced by several macroeconomic factors, including GDP.

A growing economy, as indicated by the rising GDP, can lead to increased consumer spending and confidence. This can result in an increasing number of people using cashback apps to save money on their purchases, leading to growth in the cashback apps.

Cashback Apps Market Dynamics

Market Driver- Rising Usage of Mobile Wallet Apps

Rising use of mobile wallet applications for online and offline payments is a vital factor drives the demand of cashback app market. Payment methods are being rapidly revolutionized by the use of wallets including GPay, Amazon Pay, Paytm, Apple Pay, PayPal, and Samsung Wallet. The rising use of mobile wallets is largely supported by the user-friendly app interface and voice assistance.

Companies that offer wallets and cashback are collaborating to develop innovative methods that encourage clients to purchase from companies that have the best cashback and discount offers. Another factor propelling the cashback app market is the increasing emphasis on rewarding customer loyalty points.

The mobile wallet apps add points or cashbacks to users' electronic wallets (e-wallets) with every transaction, which can be redeemed or utilized for the users' subsequent purchases. Real-time addition of points, gifts, or prizes after each purchase, which helps companies retain existing clients and attract new customers to their platforms.

Market Restraint- Lack of Flexibility and Clarity

Lack of clarity and flexibility on cashback apps is a key restraining factor hampering the market growth. Cashback apps have a wide range of products and services available for buying, hence it does not necessarily include brands or products that customers want to buy from.

Additionally, customers are able to gain limited cashback upon a certain amount of spending, which can divert customers to choose exclusive or instant lucrative offers available on other direct buying apps. Moreover, many applications provide cashback through complicated point systems or limited merchant agreements, which makes it challenging for consumers to understand the actual value of their rewards. This lack of transparency hampers engagement and diminishes the trust of users.

Customers have fewer options due to the limited flexibility of cashback apps. Majorly, rewards and cashback are restricted to particular goods, services, or shops, giving users limited options for customization. This rigid framework falls short of meeting the different interests and needs of consumers. These limitations prevent user adoption and retention, which restrains the market.

Market Opportunity- Increasing number of smartphone users and high internet penetration

The increasing number of smartphone users and growing penetration of the internet are projected to propel the market. In 2022, there were 4.4 billion users of mobile internet worldwide. A majority of new subscribers are young people and people who live in urban areas. Smartphone adoption is expected to increase rapidly in emerging economies including Latin America, Asia Pacific, and Sub-Saharan Africa due to its affordability in these regions.

Decreasing average selling prices of smartphones and initiatives are driving the adoption across the globe. Moreover, a majority of new phone users are digital natives who use their smartphones for over just voice conversations and text messages. This factor is expected to fuel the demand for smartphones across the regions.

Market Opportunity- Technological Advancements

The integration of modern technology tools for personalized offers is anticipated to drive the market in near future. Technological advancements in applications such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoTs) are expected to create a significant opportunities for the market.

Automatic analysis of customers’ buying activity and adding cashback and reward points are likely to expand the scope of cashback apps in the coming years. For instance, Rakuten analyzes the shopping habits of the users and provides tailored cashback offers from retailers and brands.

Furthermore, several cashback apps are providing real-time tracking and cashback automation for the users. The real-time tracking features allow users to motor the earned cashback immediately. These advancements in the application are not only providing attractive offers to consumers but also helping them to save money while shopping, which is expected to drive the demand for cashback apps.

Scope of Cashback Apps Market Report

The report on the global Cashback Apps market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes	Details
Report Title	Global Cashback Apps Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
Base Year	2022
Historic Data	2016-2021
Forecast Period	2023–2031
Segmentation	by Cashback Model (Direct Cashback, Point-based Rewards, Partner Programs), by Operating System (Android-based, IOS-based), by End-User (Retail & E-commerce, Travel & Hospitality, Dining & Food Delivery, Utilities, Others)
Regional Scope	Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Report Coverage	Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered	Capital One (Capital One Shopping), Rakuten Group, Inc. (Rakuten Rewards), PayPal (Honey Science LLC), Ibotta, Inc., Prodege, LLC, Ziff Davis, LLC, Upside Services, Inc, Checkout 51, Cashrewards, Dreamplug Technologies Pvt Ltd.,   Dosh Holdings LLC., Coin Out, Inc. (CoinOut), Fetch

Cashback Apps Market Segmental Outlook

The global Cashback Apps market is segmented on the basis of by Cashback Model, Operating System, and End-User.

Based on Cashback Model, the global Cashback Apps market is divided into Direct Cashback, Point-based Rewards, Partner Programs. The Direct Cashback segment have significant share in 2022 and is projected to expand at a significant CAGR during the forecast period. This is due to the growing desire of consumers to save money on their everyday purchases.

The segment is owing to the rising preferences of consumers in saving on their regular shopping. This scheme is also highly beneficial for businesses to attract new customers based on the digital as well as word-of-mouth-based promotion strategy.

Based on Operating System the global Cashback Apps market is fragmented into Android-based and IOS-based. The Android-based segment accounted for significant share in 2022 and is projected to during the forecast period, owing to the wide availability of Android devices. Android devices are cost-friendly; hence their penetration is high in every region.

Thus, increasing smartphone penetration and rising demand for cashback and reward apps in Android mobiles by the young generation are expected to boost the market. Downloads of cashback and reward apps are significantly high on Android phones, owing to easy availability and increasing digital promotion strategies from the market key players.

By End-User, the Cashback Apps market is segmented into Retail & E-commerce, Travel & Hospitality, Dining & Food Delivery, Utilities, and Others. The retail and e-commerce segment held at significant market share in 2022 and is projected to expand during the forecast period due to the benefits offered by e-commerce platforms such as discounts and cashback schemes.

Rising awareness about these benefits is increasing the number of users signing up for cash-back applications to receive instant rewards each time they make a purchase on an e-commerce platform.

Regional Outlook

The market in North America is projected to expand at a significant share during the forecast period. Rising smartphone and internet penetration and the growing trend of online shopping in North America are driving the cashback apps market in North America.

The market in Asia Pacific is to expand at a significant CAGR during the forecast period. The exponential growth of the e-commerce sector, internet penetration, and rapid urbanization in the region are contributing to the growing popularity of cashback apps, thus boosting the market.

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Cashback Apps Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Cashback Apps Market

Segments

By Cashback Model

• Direct Cashback
• Point-based Rewards
• Partner Programs

 By Operating System

• Android-based
• IOS-based

By End-User

• Retail & E-commerce
• Travel & Hospitality
• Dining & Food Delivery
• Utilities
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

By Key Player

• Capital One (Capital One Shopping)
• Rakuten Group, Inc. (Rakuten Rewards)
• PayPal (Honey Science LLC),
• Ibotta, Inc
• Prodege, LLC
• Ziff Davis, LLC
• Upside Services, Inc
• Checkout 51
• Cashrewards
• Dreamplug Technologies Pvt Ltd
• Dosh Holdings LLC
• Coin Out, Inc. (CoinOut)

Competitive Landscape

• Top players in the market include Capital One (Capital One Shopping), Rakuten Group, Inc. (Rakuten Rewards), PayPal (Honey Science LLC), Ibotta, Inc., Prodege, LLC, Ziff Davis, LLC, Upside Services, Inc, Checkout 51, Cashrewards, Dreamplug Technologies Pvt Ltd.,   Dosh Holdings LLC., Coin Out, Inc. (CoinOut), Fetch.

• The players are adopting key strategies such as acquisition, collaborations, and geographical expansion where potential opportunities for the Cashback Apps market.