Robinhood unveils credit card with 3% cashback; some users to get actual gold card
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Robinhood Markets (NASDAQ:HOOD) has launched it first-ever credit card, which will offer 3% cashback on all categories, as the financial services company forays into the highly competitive market.
The announcement comes less than a year after the company acquired no-fee credit card firm X1 for $95M to expand its product line and increase engagement with existing customers.
Robinhood Gold Card, which will have no annual fee and no foreign transaction fees, will be available exclusively for Robinhood Gold members. The card will be issued by Coastal Community Bank.
Robinhood Gold is a $50/year subscription plan that adds several features to brokerage accounts, including higher interest on uninvested cash, higher instant deposit limits and a 3% match on IRA contributions.
“I predict we’ll see a significant number of customers that join for the credit card and then become investors,” Robinhood (HOOD) CEO Vlad Tenev told Axios.
The company is also offering a 10 karat solid gold credit card to the first 5,000 customers who refer 10 people to sign up for Robinhood Gold.
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