Robinhood has introduced a credit card tailored for
its premium customers. This move aims to solidify the firm’s presence
in the personal finance sector while onboarding more users to subscribe to its
premium services.
Dubbed Robinhood Gold Card, the new offering charges no annual or foreign
transaction fees to provide users with a cost-effective payment solution.
According to Robinhood’s website, cardholders can receive up to 3% cash back on
purchases, along with 5% cash back on bookings made through Robinhood’s travel
portal.
The launch of the Robinhood Gold Card marks a
significant step in the company’s endeavor to diversify its product range and
reduce reliance on market-sensitive trading revenue, Reuters reported. With the launch of the Robinhood Gold Card, the
online trading app based in California is broadening its range of financial products.
Forged in fire. Cast in solid gold. Limited edition.
Claim your spot on the waitlist for the Robinhood Gold Card. Terms and subscription fee apply. https://t.co/iQ03uMuWiH pic.twitter.com/axjKnhd1Xz— Robinhood (@RobinhoodApp) March 27, 2024
The introduction of the Robinhood Gold Card presents a
compelling proposition for the platform’s existing Gold members. With no annual
fee and lucrative cash-back rewards, the card aims to incentivize users to
maintain their premium membership.
Additionally, users gain access to perks, such
as the ability to create virtual cards, add family members, and track spending
through a dedicated app. By leveraging its extensive user base, Robinhood plans
to enhance loyalty programs in the financial services industry.
Strategic Acquisitions
Robinhood entered the credit
card market after acquiring the fintech startup firm X1 Inc. for $95 million
last year, Finance Magnates reported. As part of the acquisition deal, Robinhood welcomed the Co-Founders of X1, Deepak Rao and Siddharth Batra. The executives were tasked with overseeing Robinhood’s newly acquired credit card business.
Robinhood’s February 2024 report highlighted impressive milestones. The firm’s funded customers reached 23.6 million by the end of the month, representing a substantial increase of approximately 130,000 from the previous month.
Besides that, assets under custody experienced a remarkable upswing, soaring to nearly $119 billion. This marked a substantial upsurge of 59% from the previous year. In the fourth quarter of 2023, Robinhood posted a net revenue of $471 million, representing an increase of 24% year-over-year.