From spa treatments to cereal, coupons are vouchers shoppers can redeem for discounts on specific products or services as part of sales promotions distributed by mail or online. While the typical US household could save up to $1,465 per year by using coupons, businesses also benefit: Psychologically speaking, the perception of saving money often encourages customers to spend more overall than they otherwise would.
The first widely documented coupons are credited to Asa Candler, an early owner of the Coca-Cola Company, who in 1887 offered free glasses of his then-unknown soda. However, coupons weren’t necessarily commonplace in American life until the economic challenges many faced during the Great Depression accelerated their adoption.
93% of Americans have used a coupon in the past year. Digital coupon redemption overtook that of physical coupons for the first time in 2020. By 2024, 53.4% of redeemed coupons in the US were digital.
Hours of research by our editors, distilled into minutes of clarity.
The history of coupons starts in the US with the Coca-Cola coupon that was mailed to consumers, offering them a chance to come try the soda for free in a nearby pharmacy. A coupon created by cereal company Post is one of the earliest widely cited follow-ups—it offered a penny off a box of Grape Nuts in 1909.
Coupon use accelerated during the Great Depression, when the US unemployment rate reached nearly 25 percent. While coupons were invented in the late 1800s, they became more popular during the Depression as a way to stretch household budgets during the era’s economic hardships. Companies soon began distributing coupons via newspapers and women’s magazines.
That’s compared to 28% for physical coupons, representing the year the balance of power shifted in digital’s favor. The COVID-19 pandemic era’s lockdowns increased online shopping, which accelerated digital coupon adoption.
The psychology of coupon users can feel counterintuitive: Research suggests regular coupon users actually prioritize coupon availability over actual price comparisons.
The television show gave viewers an inside look at the lives of Americans who treated couponing like an extreme sport. These people would often stockpile hundreds of products they acquired via deals found on coupons in their homes.
The home goods store’s most fervent fans loved these coupons so much that some bought them in batches on eBay. The FBI even reportedly found one of these big blue coupons in famous mobster Whitey Bulger’s junk drawer. (Some users may experience a paywall.)
Investigators found fake coupons in “every crevice” of husband and wife duo Pacifico Talens Jr. and Lori Ann Talens’ home. The couple was sent to prison and are serving a combined 19 years.
With digital coupons overtaking physical ones as the most commonly redeemed coupons, customers flock to these sites and apps for coupons and discount codes, often checking multiple of them before making an online purchase.
This clip from the "Acquired" podcast shows an image of one of the original Coca-Cola coupons. The hosts argue that the coupons helped popularize Coca-Cola in its early days, making them a key component in the story of one of the world's most iconic brands.
Given the uptick in digital coupon adoption, sellers who offered coupon inserts or individual coupons for sale online have been closing up shop in recent years.
The United States is home to more than 33 million businesses, the vast majority of which are small businesses, with millions being created (and others closing shop) every year. These businesses often rely on loans, provide the goods and services that keep the economy flowing, and sometimes even grow large enough to enter public markets or provide private investment opportunities. Explore key topics central to business and finance, from the role of the Federal Reserve to how initial public offerings work, how millions of American students finance higher education, and more.