Robinhood Expands Beyond Trading with Launch of New Credit Card, Reuters Reports

Robinhood Expands Beyond Trading with Launch of New Credit Card, Reuters Reports

By Niket Nishant

(Reuters) – Online trading app Robinhood (NASDAQ:) Markets launched a new credit card on Tuesday, aiming to expand its presence in the personal finance market and increase subscriptions to its premium tier .

The credit card, available exclusively to Robinhood Gold customers, comes two years after launching a debit card to allow small change investing as the Menlo Park, Calif.-based company seeks to expand its offerings of products.

Robinhood bought Max Levchin-backed fintech startup X1 Inc for about $95 million last year, taking advantage of the popularity of fintech companies due to the growth of digital banking, in its bid to become a one-stop shop for financial services.

Expanding beyond its core trading business could also help protect Robinhood against bouts of market turmoil, such as when a series of interest rate hikes by the U.S. Federal Reserve in 2022 spooked retail investors.

The Robinhood Gold card would have no annual fee, no foreign transaction fees and would offer 3% cash back, in the form of rewards points, on spending. Bookings made through Robinhood’s travel portal would earn 5% cash back, the company said.

Reservations for a place on the waiting list for the card began Tuesday. The company plans to roll out the product widely later this year.

In its most recent quarter, Robinhood posted a surprise profit thanks to higher interest income and a rebound in trading. The fintech’s shares have surged about 50% so far this year.

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