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Robinhood launches new debit card emphasizing spare change investment, featuring scheduled trades, direct deposit, and trading rewards.

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Robinhood launches new debit card emphasizing spare change investment, featuring scheduled trades, direct deposit, and trading rewards.

The zero-commission brokerage platform Robinhood has launched a new cash card to replace its old checking account product, featuring cryptocurrency rewards, direct deposit of salaries, and other functions.

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According to an official announcement from Robinhood, its cash card is issued by Mastercard and offers new features including:

  1. Round-ups: Providing users with the service of rounding up custom amounts to the nearest dollar for recurring trade orders.
  2. Providing the ability for account deposits to receive paychecks early and engage in regular investments.
  3. Daily rewards are coming soon, with users executing regular investments eligible for up to $10 in rewards per week.
  4. Cashback feature will be launched soon.

The new debit card is issued by the subsidiary Robinhood Money, showing that fintech giants like PayPal and Robinhood are actively expanding their business scope.

PayPal has been continuously expanding into the cryptocurrency trading market over the past two years, introducing features such as small-scale coin purchases, early paycheck deposits, bill deductions, and high-yield savings accounts. The new features launched on Robinhood also have significant overlap with PayPal, as both are trying to gain market share from each other.

Boosted by the positive news, Robinhood's stock price rose by 2.84% in the past 24 hours, reaching $13.42 at the time of writing. Robinhood went public at the end of July last year and hit a historical high of $55.01 on 8/6 before steadily declining.

Robinhood's Product Lead Aparna Chennapragada mentioned in an interview that this update involves the strategy of embedding cryptocurrency products. They aim to provide non-native tokens within a familiar interface to users and then further convert rewards into Bitcoin or other tokens.

The Robinhood cash card is currently open for a waitlist, and there is no further information on the previously mentioned and tested cryptocurrency wallet.