How to Launch a Cashback App in India or USA: Legal, Affiliate & Technical Checklist

Want to launch your own cashback app like CashKaro, Rakuten and Honey in India or the USA? That’s a smart move. People love saving money and cashback platforms are booming, thanks to the rise of eCommerce, affiliate marketing and reward-driven shopping.

But building a successful cashback app is more than just putting affiliate links inside an app. There are legal requirements, technical integrations and affiliate partnerships you must get right especially if you're targeting competitive markets like India or the United States.

This guide gives you a clear step-by-step checklist to launch your cashback app the right way tailored to the legal, affiliate and technical needs of both India and the USA.

What is a Cashback App?

A cashback app partners with online retailers (like Amazon, Flipkart, Walmart or Myntra) and earns commissions when users shop via the app’s affiliate links. The twist? You share a portion of that commission back with the user as a cash reward.

So, the more people shop through your app, the more both you and your users earn. It's a win-win model.

Popular examples:

• Rakuten (USA)

• CashKaro (India)

Honey (Global browser extension, now owned by PayPal)

Why You Should Launch a Cashback App in 2025

• Affiliate marketing is booming – Estimated to reach $15B globally by 2025.

• E-Commerce penetration is high in India and the USA.

• High retention rates – Users return to earn more cashback.

Loyalty meets utility – Cashback is addictive and functional.

Step-by-Step Checklist to Launch Your Cashback App

Let’s break this into three parts:

1. Legal Requirements

2. Affiliate Network Setup

3. Technical Development Checklist

1. Legal Checklist (India vs USA)

India

• Register a Private Limited Company or LLP under MCA.

• Get GST registration – even if your revenue is low initially.

• Draft a Privacy Policy, Terms & Conditions, and Refund Policy to comply with the IT Act 2000 and upcoming DPDP Bill 2023 (Digital Personal Data Protection).

• Comply with affiliate program policies (Amazon India, Flipkart, etc.).

Tip: You don’t need RBI approval unless you’re holding or transferring money on behalf of users (like wallet-style apps). Instead, use UPI or direct bank transfers via APIs like RazorpayX or Cashfree Payouts.

USA

• Register your business (LLC or Corporation).

• Apply for an EIN (Employer Identification Number) for tax purposes.

• Make sure you comply with FTC guidelines on affiliate disclosures.

• Privacy laws: Follow CCPA (for California) and GDPR if you expect international users.

• Clearly disclose cashback tracking terms and conditions.

Bonus Tip: Use affiliate disclaimer text like:
"We may earn a small commission when you make a purchase through links in our app. This helps us keep the cashback running for you!"

2. Affiliate & Cashback Setup

Key Affiliate Networks to Join

India

• **Amazon Associates India

  **

• **Flipkart Affiliate Program

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• Cuelinks – Great for accessing multiple affiliate programs via one platform

• **Admitad India

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• **vCommission

  **

USA

• **Rakuten Advertising

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• **Amazon US Associates

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• **Commission Junction (CJ)

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• **ShareASale

  **

• Impact.com

Pro tip: Use intermediate affiliate platforms like Cuelinks or Admitad to avoid applying individually to each brand.

How Cashback Tracking Works

When users click an affiliate link from your app, a unique tracking ID is generated and stored in a cookie. When a purchase is completed:

• The retailer tracks it back to your affiliate account.

• You earn a commission.

• You pass part of that commission back to the user as cashback.

Handling Cashback Payouts

Options:

• Bank transfers via payout APIs (RazorpayX, Cashfree, Payoneer).

• UPI payments (India only).

• PayPal (international).

• In-app wallet with redemption limits.

Must-Have Rules:

• Minimum withdrawal amount (e.g., ₹250 or $10).

• Cashback release only after the return period ends.

• Real-time status tracking: Pending → Confirmed → Paid.

3. Technical Checklist for Your Cashback App

Must-Have Features

• User login/signup (Google, phone, email)

• Product search with category filters

• Affiliate links integration (with auto-tracking IDs)

• Cashback tracking dashboard for users

• **Order history and cashback status

  **

• **Referral system

  **

• **Push notifications

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• **Customer support (chatbot or form)

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• **Payout request system

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Backend Considerations

• Secure user data (encryption, 2FA)

• API integrations with affiliate platforms

• Track clicks → purchases → cashback

• Admin panel to manage offers, users, and payments

  Recommended Tech Stack

  Layer	India & USA-Friendly Tools
  Frontend	Flutter or React Native
  Backend	Node.js + MongoDB or Laravel + MySQL
  Tracking	Postback URL + Affiliate SDK/API
  Payments	RazorpayX / Cashfree / Payoneer / Stripe
  Notifications	Firebase Cloud Messaging

Regional Customization: India vs USA

India-Specific Additions

• Support Hindi & regional languages

• Offer UPI & Paytm Wallet for payouts

• Add local brands (Myntra, Tata Cliq, Ajio)

USA-Specific Additions

• Integrate with PayPal or Venmo

• Include stores like Walmart, Best Buy, Target

• Follow FTC disclosure guidelines strictly

How to Grow & Monetize Your Cashback App

Promotion Strategies

• Partner with influencers for cashback reviews

• Run Facebook/Instagram ads with referral rewards

• Start a blog with “best cashback deals” posts for SEO

• Use referral bonuses (₹100 or $5 per friend)

Monetization Options

• Commission from affiliate sales (main revenue)

• Premium membership with faster cashback release

• Featured deals (brands pay to promote inside app)

• Google AdMob (secondary)

Final Thoughts

Building a cashback app like CashKaro or Rakuten is totally possible in 2025 — but only if you build it right.

• Choose the right affiliate platforms

• Follow legal rules of your region

• Build a smooth, trust-based user experience

• Stay consistent with cashback payments and support

The cashback game is all about trust and timing. If you get those right, people will keep shopping through your app and keep coming back for more.

**Want expert help building your cashback app?

**

Let’s talk. Our team has built reward platforms for both Indian and global markets including UPI, RazorpayX, and Amazon integrations.

👉 Contact Us Now to get started.