Robinhood announced it’s launching a new debit card, the Robinhood Cash Card, “to help a new generation start their investing journey — and get rewarded — while spending on the things they need and love.” The Cash Card will give debit card customers the same benefits and rewards that were once reserved for credit card holders, according to a blog post. It will also enable them to automatically invest in stocks or cryptos.
Robinhood Chief Product Officer Aparna Chennapragada told GOBankingRates that the Robinhood Cash Card expands the definition of investing.
“We’re growing with a new generation of debit-first customers for whom investing still feels out of reach,” Chennapragada said. “Spending is a fact of life, and we want to help this generation turn everyday spending into opportunities that will help build good habits for the future. Start early, and every little bit matters.”
Asked what prompted the launch, Chennapragada said that Robinhood heard from customers who wanted to have more control over their cash flows.
Chennapragada explained that the new Cash Card is a separate spending account and debit card that helps them track their spending budget from their investment budget.
“This is what the future of spending looks like for a new generation that’s mobile-first and who expects more from the institutions they bank with,” Chennapragada added.
Customers will get a weekly bonus on round-ups, of 10-100% (capped at $10) and they can choose to round up their change to the nearest dollar and invest it in their choice of assets, stocks or cryptos.
A feature that will come this summer will enable customers to “beat inflation,” by giving them savings when they shop at some of their favorite spots like H&M, Chevron and Chipotle, with many more coming soon.
In addition, customers can set up their direct deposit and apply to get access to their paycheck up to two days early. They can also use our split your paycheck feature to automatically invest in assets in their brokerage and crypto accounts.
The card carries no monthly fees, no subscription fee, no in-network ATM fees, no overdraft fees and no-account minimum fees that cut into our customers’ investments.
“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 in a blog post, adding that a recent survey found that only 17% of Gen Z say a credit card is their preferred payment method, compared with 46% of millennials and 47% of baby boomers.