Robinhood’s new credit card follows Apple Card with the ability to invest cash back perks

Eight months later Get started credit card x1 For $95 million, Robinhood today announced the launch of its new Gold Card, with a list of features that could make Apple Card users envy.

Robinhood, best known for its brokerage app aimed at the everyday investor, is touting all kinds of benefits with its new card in an attempt to attract users. The card does not carry any annual or foreign transaction fees. However, it will only be available to Robinhood Gold members, which costs $5 per month, or $50 per year. (gold It is a program that offers other benefits such as 5% APY on cash brokerage funds not invested in the account.)

Gold Card users can earn 3% cash back on all categories, including restaurants and groceries, and 5% cash back when booking travel on Robinhood’s new travel portal. The company says this cash can be transferred to brokerage accounts, which can go toward making investments such as purchasing stocks. The ability to invest using cashback isThis is a major innovation that X1 developed before its acquisition.

Another interesting feature of the Gold Card includes the ability to provide cards to family members. This is the first time Robinhood has offered a family-oriented financial product, Robinhood Money General Manager Deepak Rao said TechCrunch. Rao was the founder and CEO of X1 before joining Robinhood in the acquisition.

Users will have the ability to add up to five family members as cardholders to their accounts with each cardholder receiving their own card. Additional cardholders can be of any age, giving parents a way to help teens build credit and monitor spending. The ability to provide cards to family members will extend even to visitors from other countries.

“The user can offer the cards to parents, children or caregivers and put in place the right kind of controls and protections, while also helping them build their credit,” Rao said. “They don’t have to provide any information other than their name, date of birth, and Social Security number if they have one. If you’re concerned about spending limits, you can set a dollar amount limit and also a safe mode for kids.

The card also allows users to create and delete virtual cards for one-time purchases and will have an APR of 20.24%-29.99%, which Robinhood said will vary by market based on the base rate.

Robinhood is also making its physical cards numberless, so if they are lost or stolen, users won’t have to swap out all of their card information. Rao said the company will also launch a new app in line with the new Gold Card that will be completely separate from its investment app.

Overall, a Gold Account offers up to $2.25 million FDIC insurance from a network of partner banks.

Cash back

Robinhood’s entry into the credit card market is clearly taking inspiration from the likes of Apple, which has seen great success with its own card (despite its missteps). Partnership with Goldman Sachs). By waiving hidden fees like annual or late fees, and through our daily cash back app, Apple Card It has more than 12 million users As of January.

Many cards offer cash back but they are often limited to certain categories. This card is generous in its cash back offer. Apple, for example, offers 3% cash back on all purchases made at Apple, and on purchases made at select merchants when you use Apple Card with Apple Pay. Generally, purchases made on Apple Card using Apple Pay earn users 2% back. But Apple also offers Family Sharing, and a high-yield savings account that offers 4.5% interest.

Robinhood will obviously earn interchange revenue from credit cards, and the standard transaction fees that merchants pay. It has earned interchange revenue from its debit cards, which It was launched in 2018. Coastal Community Bank is Robinhood’s banking partner on the new Gold Card.

The new credit card is part of Robinhood’s evolving business model and offerings over the years. In December 2022, the company announced Robinhood retired, which he described as his “first and only” individual retirement account (IRA) with a 1% return on every eligible dollar contributed. Gold Membership, a requirement for a Gold Card, increases the qualifying match rate to up to 3%.

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