Ibotta is an established mobile application that works with various Retailers to offer a rewards program to clients. Recently, Ibotta added a new feature to its application allowing for rewards-based payments.

The New Feature

Before this most recent update, Ibotta mostly served to let users earn cash back as they shop. It originally acted similar to a digital coupon-clipping service, automatically offering savings for various products.

The latest version, however, adds in payment functionality for even more savings. This feature, called Pay with Ibotta, will automatically distribute rewards for your transaction among the 30 restaurants and retailers at the checkout.

Participating Retailers

At its launch, the first national chains that will participate in Pay with Ibotta include Sephora, Old Navy, Lowe’s, The Home Depot, Bath & Body Works, Ulta, Gap, and the Banana Republic. More restaurants and retailers will join in the following months.

A Large Market

Ibotta launched in 2012 and has 30 million downloads. As of the announcement, Ibotta users received over $525 million in cash rewards. The new Pay by Ibotta feature gives the company the ability to participate in the market for payments and couponing on mobile devices, which experiences rapid growth. Last year, the mobile payments market was worth $897.7 billion globally. Experts predict it will reach $3.7 trillion in 2024. Much of the push towards mobile payments comes from younger consumers.

The rise of mobile payments has a clear association with the increase in smartphone use. 34 percent of consumers in the United States compare prices via their smartphones while shopping in a physical store. Additionally, 28 percent use their smartphones to find coupons while shopping. A study even indicated that 67 percent of consumers are more likely to choose to shop at a store with mobile coupons.

Benefiting Retailers and Shoppers

The Pay by Ibotta feature should benefit both retailers and users. Users will have a new way to utilize their rewards and get discounts. Best of all, the rewards, couponing, and payments are all in a single app, offering convenience. Meanwhile, retailers will get to take advantage of the lack of credit card processing fees since the payment originates from the application.

Source:

https://www.retaildive.com/news/gap-chipotle-and-sephora-test-new-rewards-based-payment-tool/555443/

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