Cash Back and Rewards App market size was valued at USD 3325.9 million in 2022 and is expected to expand at a CAGR of 6.99% during the forecast period, reaching USD 4989.69 million by 2028
The advancement in technology is a major factor influencing the rewards & cashback apps market. The incorporation of technologies such as Machine Learning (ML) and Artificial Intelligence (AI) creating new market opportunities.
These technologies allow for the automatic analysis of consumer purchasing behavior and the addition of rewards points, which is anticipated to expand the reach of reward based solutions in the coming years.
In terms of consumer response, the entire reward area may grow quickly when the business activity “rides” on an existing muscle. In this case there is already a developed muscle of Social consumer engagement which is reflected in social engagement such as — sharing, liking, inviting friends and writing recommendations.
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.Crypto / Digital currency that is exchangeable brings a clear value ( users can see it on the exchange ) and also bring a new , fresh promise to the market.
Main segments in the reward and cashback are — Retail & E-commerce, Travel & Hospitality, Dining & Food Delivery.
Rising awareness about the long tail users benefits is increasing the number of users signing up for cash-back and rewards applications to receive instant rewards for each micro-activity that the are doing .
Next segment in this area will be the Content & Media vertical — users will be rewarded for consuming content and specially for being engaged with the content — www.spreado.co is one of the most interesting player in this new vertical. They have developed a Crypto based engine that helps Publisher to distribute their content.
The market in North America will continue to lead this industry and will expand at a significant share during the forecast period.
The market in Asia Pacific is to expand at a significant CAGR during the forecast period.
The exponential growth of the e-commerce sector and rapid urbanization are contributing to the growing popularity of rewards and cashback solutions
There are few significant players who lead this industry :
- Capital One (Capital One Shopping)
- Rakuten Group, Inc. (Rakuten Rewards)
- PayPal (Honey Science LLC)
- Ibotta
- Prodege
- Ziff Davis
- Upside Services, Inc,
- Checkout 51
- Cash rewards
- Dreamplug Technologies
- Dosh Holdings
- Coin Out Inc. (CoinOut)
- Fetch