On Tuesday, Robinhood Markets Inc introduced a Cash Card to make easier investments in trading and digital assets. The firm is known for pioneering commission-free trades of stocks, exchange-traded funds and cryptocurrencies.
The card will be offered by Robinhood Money LLC, which will provide “the same benefits and rewards” that apply to credit cardholders.
“We’ve seen a new generation change their relationship with money, moving away from credit card debt, cash and making more digital transactions,” the company said.
The company referred to a survey that says just 17% of Gen Z thinks that credit is the more preferable payment method, in comparison to 46% of millennials and 47% of baby boomers.
The new cash card will possibly replace Robinhood’s Cash Management product, where their customers are investing and spending their fiat on the brokerage account. The new launch will allow customers to sign-up and watch separate accounts for investing and spending.
Furthermore, the company stated that it is going to end sign-up for Cash Management operations and open a waitlist for the card. However, some existing Cash Management customers will be able to access cash cards at the beginning of the week.
To entice more consumers, the cash card will deliver a bonus of 10 to 100% on the weekly round-up. As customers spend, they can round up their change to their nearest dollar and invest in whatever asset they choose.
Also, the company will provide discounts to their customers through cash card during their shopping at H&M, Chevron, and Chipotle. In the upcoming time, many new businesses are expected to join.
The company stated that the card allows customers to access their paycheck up to two days early and “split their paycheck to automatically invest in assets in their brokerage and crypto accounts.”
Robinhood is continuously rolling up crypto space with new projects. Recently, the company introduced a Beta program enabling users to withdraw crypto from their wallets.