Robinhood launched a credit card as it continues expanding into financial services.
“At Robinhood, we recognize the need for change,” the company, known largely for its trading platform, wrote in a blog post Tuesday (March 26). “Over 80% of U.S. adults have at least one credit card, but people still find everything from rewards, credit card terms, fees and interest rates overwhelming. The Robinhood Gold Card reimagines the credit card experience, making it easy for people to keep track of how they spend their money.”
The card is open exclusively to members of the company’s Robinhood Gold program, a subscription that provides premium services for a fee, the post said. The card offers 3% cash back on all purchases. The company is allowing people to sign up for a waitlist now, with wider availability expected later this year.
“Our goal is to enter this market in a big way,” CEO Vlad Tenev told Bloomberg. “We don’t want to just roll out a credit card that our customers will adopt. We want to roll out a product that can lead the industry and move it forward.”
While Robinhood made a name for itself as a stock trading and investment app, it has begun to broaden its horizons.
The company launched a retirement account in 2023. Last month, it expanded the offering to include gig workers via partnerships with three gig economy companies: Grubhub, Gopuff and Taskrabbit.
Robinhood has been looking to capture new markets and introduce new products in a bid for growth. It added bitcoin exchange-traded funds after they were approved by the Securities and Exchange Commission. It also began offering brokerage services in the United Kingdom and cryptocurrency in the European Union.
“What we’re hearing from customers is that they want more of the full Robinhood product suite, so we’re working to build that for them,” Tenev said during an earnings call in February. “We’re also pursuing opportunities to expand into more jurisdictions.”
Meanwhile, PYMNTS Intelligence found that while consumers are generally fans of credit card rewards programs, there are aspects of these programs with which they are unhappy.
“The Credit Economy: The Role of Reward Programs in Consumer Credit Usage” found that 72% of cardholders who used their cards in the three months before being surveyed encountered some sort of friction. Nearly a third of card users said friction happens when trying to redeem their rewards.
