Last updated on August 22nd, 2022
Investment app Robinhood has a new debit card. Dubbed the Robinhood Cash Card, the new debit card lets users choose to round up their change to the nearest dollar and invest it in assets of their choice.
Robinhood Launches New Investment Debit Card
Robinhood Markets has launched a new debit card that allows spare change investing as it looks to expand beyond trading and into more consumer finance verticals, taking on leading fintech giants Chime and PayPal. The card is being offered by Robinhood Money, a brokerage subsidiary of the fintech.
About the Robinhood Cash Card
The biggest feature of the Robinhood Cash Card is the option to automatically invest in assets like stocks and crypto when making purchases. Robinhood rounds up transactions made with the card to the nearest dollar. Users can then use those extra funds to buy crypto assets or stocks through the Robinhood platform.
Robinhood has also stated that Robinhood Cash Cardholders can keep separate accounts for investing and spending. This new debit card product will replace the company’s existing cash management product, which keeps all funds in a dedicated brokerage account.
“The younger generation is debit card-primary, so that is a primary focus,” said Robinhood’s Chief Product Officer Aparna Chennapragada. He added that Robinhood was trying to capitalize on a consumer shift towards debit cards and digital/online spending.
Rewards Debit Cards Continue to Enjoy Popularity
The new Robinhood Cash Card isn’t the only debit card that lets users. Other apps, like Chime and Acorns Grow, also allow spare change investing. The M1 Spend Visa debit card synch seamlessly with an existing investment account to allow spending of dividends and investment sales. Other reward debit card options include the popular Extra Mastercard, the Fold Visa prepaid card, and the Aspiration Debit Card.
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