8 months later Acquisition of credit card startup X1 Robinhood announced today that it is launching a new Gold Card, priced at $95 million and featuring a list of features that Apple Card users would envy.
Robinhood, better known as a brokerage app targeting general investors, is touting all sorts of benefits with its new card to attract users. This card has no annual fees or foreign transaction fees. However, it is only available to Robinhood Gold members, which costs $5 per month or $50 per year. (gold This is a program that provides 5% APY and other benefits for uninvested brokerage cash in the account.)
Gold Card users can earn 3% cash back on all categories, including restaurants and grocery stores, and can earn 5% cash bank when they book travel on Robinhood’s new travel portal. That cashback can be transferred to a brokerage account and used for investments, such as buying stocks, the company says. The ability to invest using cashback isBig innovations developed before X1 was acquired.
Another interesting feature of the Gold Card is that you can give the card to a family member. This is the first time Robinhood has launched a family-oriented financial product, the Robinhood Money General Manager. Deepak Rao said. Tech Crunch. Rao was the founder and CEO of X1 before joining Robinhood for acquisitions.
Users can add up to five family members as cardholders to their account, along with every cardholder who receives their card. Additional cardholders are available at any age, so parents can help their teens build credit and monitor spending. The ability to provide cards to family members also extends to people visiting from other countries.
“Users can give the card to a parent, child or guardian and set up the right kind of control and protection, while also helping build credit,” Rao said. “If you have your name, date of birth and Social Security number, you do not need to provide any other information. If you’re worried about spending limits, you can set dollar limits and even set up a child-safe mode for your kids.”
The card also allows users to create and delete virtual cards for one-time purchases, and the APR ranges from 20.24% to 29.99%, which Robinhood said will vary depending on the market based on the preferred rate.
Robinhood also de-numbers physical cards so users don’t have to exchange all of their card information if the card is lost or stolen. The company will also launch a new app to be used with the new Gold Card, which will be completely separate from the investment app, Rao said.
Gold accounts typically offer up to $2.25 million in FDIC insurance from a network of partner banks.
cashback
Robinhood’s foray into the credit card market is clearly taking its cue from examples like Apple, which has found great success with its own cards. Partnership with Goldman Sachs). By ditching hidden fees such as annual fees and late fees and applying cashback every day, Apple Card Number of users exceeds 12 million As of January.
Many cards offer cash back, but it’s often limited to certain categories. This card offers generous cashback benefits. For example, Apple offers 3% cash back on all purchases made at Apple, and it also offers 3% cash back on purchases made at select merchants when you use the Apple Card with Apple Pay. Typically, users are given a 2% rebate when making purchases with their Apple Card using Apple Pay. However, Apple also offers Family Sharing features and a high-yield savings account that offers 4.5% interest.
Obviously, Robinhood earns exchange revenue from credit cards, which are standard transaction fees paid by sellers. Exchange revenue was earned through debit card. Released in 2018. Coastal Community Bank is a banking partner of Robinhood with a new Gold Card.
The new credit cards are part of Robinhood’s business model and services evolving over the years. The company announced in December 2022. Robinhood Retirement, which is described as the “first and only” individual retirement account (IRA) with a 1% match on every eligible dollar earned. Gold membership, a requirement to receive a Gold Card, increases your eligible match by up to 3%.
“There have always been special privileges and opportunities that make the rich richer. This is why we started Robinhood… ” Robinhood co-founder and CEO Vlad Tenev said in a written statement. “Today’s announcement brings us one step closer to our goal of making the financial system more accessible to everyone.”
Robinhood Gold Card Description:
What are the requirements to apply for the Robinhood Gold Card?
you are robinhood gold Card member.
You must first meet the following: credentials To apply for a card:
- You must have a Robinhood Gold account.
- You must be 18 years or older.
- You must have a valid Social Security number (not a Taxpayer Identification Number).
- Must have a legal U.S. residence address within the 50 states (exceptions may apply for active-duty U.S. military personnel stationed overseas).
- You must be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa.
Are there monthly fees associated with the Robinhood Gold Card?
You must be a Robinhood Gold member to apply for the card. Robinhood Gold membership costs $5 per month or $50 per year.
Are there any foreign transaction fees associated with the Robinhood Gold Card?
No, there are no foreign transaction fees.
Will my credit be canceled if I apply for the Robinhood Gold Card?
Robinhood strictly won’t debit your credit until you accept the card offer.
What are the cashback benefits and benefits of this card?
- Users can get 3% cashback on all categories. That cashback can be transferred to your brokerage account and used for investments, such as buying stocks.
- Users can add up to five family members as cardholders to their account, along with every cardholder who receives their card.
- Cardholders can create and delete virtual cards for one-time purchases.
- The physical card does not have a number, so users do not need to replace all card information if it is lost or stolen.
Is Robinhood Gold FDIC Insured?
Robinhood offers up to $2.25 million in FDIC insurance through its network of partner banks.
Below you can find the full archive of Robinhood events announcing the Gold Card.
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This post was originally published on March 26 at 4 PM PT and has been updated to include Robinhood’s stream and additional remarks.