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Great deal or buyer beware? Smartphone apps that save or pay you money(Canadian Press DataFile Via Acquire Media NewsEdge) TORONTO - Each week before Kerry Taylor and her husband head to the grocery store, they open an app on their smartphones to see what's on sale. The Toronto couple uses the free app Flipp, which aggregates store flyers, to browse deals from various retailers such as Loblaws (TSX:L), Hudson's Bay (TSX:HBC), Costco and Walmart. The app lets them virtually "clip" the deals into a digital shopping list or show them in-store for price matching. Flipp also allows users to search for specific items from all available flyers out that week. Taylor estimates the app saves her family at least $15 a week on their grocery bills. "I absolutely love it. I'm saving on toiletries, diapers, kids' clothing, food," said Taylor, who runs the personal finance blog Squawkfox. The popularity of smartphone and tablet apps that save or, in some cases, pay consumers, fall under a number of categories, including ones that promote store flyers and coupons, those that offer rewards for visiting a retail store and ones that allow you to compare prices by scanning product barcodes. They're convenient to use but Taylor cautions that also makes it easier for consumers to overspend. "If you're using these apps and all of a sudden, you're shopping more often — that's not a good plan. If you're buying food you don't really need, that isn't good for you — then it's not a good app," she said. "If you're using the app to reduce your expenses on a real grocery haul, then yeah, it's a great app." Users should also be aware of what they may be trading in for the big discounts. Consumer technology expert Marc Saltzman suggests that customers stick to apps owned by reputable companies if they have concerns about their personal information being collected and shared. Retailers like these types of apps because it gives them a window into customer preferences and purchases. But the apps also put more knowledge into the hands of the customer on where to spend their dollars. "Retailers feel it's a blessing and a curse," he said. "We have a more educated society when it comes to pricing and quality, a customer who can pull up a review of a product just by taking a picture of it, Google it and see what other customers say about it. On the other hand, it lets retailers better connect with their users and make the shopping experience more personalized and rewarding." John Fanous, vice-president of marketing at Mediative, and bargain hunting website RedFlagDeals.com, said these apps depend on information to get customers the discounts. "For example, if an app is serving you up the best possible deals around where your physical location is, it's doing that because it knows where your physical location is. If it's serving you up the most relevant offers based on what you bought prior or shown to be interested in prior, it's because it knows what you were buying or showing an interest in buying prior," he said. "What makes them so usable is also sometimes what causes some privacy concerns." OTHER APPS AND WEBSITES THAT CAN SAVE OR PAY USERS MONEY Ebates.com Users sign up for an account through Ebates.com and can browse for products through the website's partners, including big name retailers like Sears (TSX:SCC), Roots, and Apple. Once they purchase an item, a percentage of the sale is credited back to the customer. Each quarter, the website sends the member a cheque or transfers the funds to a PayPal account. The cash back can range anywhere from 1.5 per cent to six per cent of the total purchase. RedLaser Shoppers can scan product barcodes while in a store, and compare prices from competing local and online retailers. Pact Users tell the app their diet and exercise goals for the week, and how much they're willing to pay if they don't meet these goals. The app uses GPS and photos as evidence that the goals were met. Users who are successful can earn cash rewards from money collected from those who aren't successful. Foap Smartphone users can upload their personal photos to the app. After five people rate the photo with an average of 2.6, it will be listed for sale on the Foap Market. Once someone buys the photo, the user gets $5. Follow @LindaNguyenTO on Twitter. © 2014 The Canadian Press. All rights reserved. |