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Robinhood Markets, Inc. (HOOD - Free Report) has unveiled its first-ever credit card in an effort to expand its services beyond mainstream trading. The credit card, known as the Robinhood Gold Card, will be available exclusively to Robinhood Gold customers.
For Gold members who refer at least 10 other individuals to the subscription plan, the credit card will be made from real gold.
Deepak Rao, the general manager of Robinhood Money, stated, “I think it’s the heaviest credit card on the market. If you accidentally drop it on your table, everyone in the room will hear it.”
Reservations for a spot on the waitlist for the card have already begun. But HOOD will roll out the product broadly later in 2024.
While the credit card itself carries no annual fee, it would require a Robinhood Gold membership, which runs $5 per month or $50 annually.
The credit card will offer features like a 3% cash back in the form of reward points on spending and no foreign transaction fees.
Also, bookings made via Robinhood’s travel portal would give its users a 5% cash back.
The card will come with its own application that would make it relatively simple to create virtual and one-time cards and the ability to set up cards for up to five family members with spending limits.
Rao said that cardholders who lose their physical card would not have to update online subscriptions when their cards are replaced, since the card number used for online purchases will only be available through the app and not displayed on the physical card.
In order to become a one-stop solution for financial services, HOOD acquired credit card company X1 last year.
Rao was the co-founder and CEO of X1. He said that the offer of 3% cash back on all purchases is a first in the industry. Some other credit card issuers offer equal or higher rewards, which are limited to particular transactions or certain merchants.
As the company ventures further beyond trading with the launch of the credit card, it will help the online trading app protect itself from market turbulences.
Over the past six months, shares of HOOD have surged 99.2% compared with the industry’s 22.6% growth.
Image Source: Zacks Investment Research
Currently, Robinhood carries a Zacks Rank #3 (Hold).
Over the past 60 days, the Zacks Consensus Estimate for PIPR’s current-year earnings has been revised 9.1% upward. The stock has gained 32.5% over the past six months.
The Zacks Consensus Estimate for IBKR’s current-year earnings has been revised 1% higher over the past 60 days. Shares of IBKR have gained 25.5% over the past six months.
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Robinhood (HOOD) Unveils Credit Card, Expands Beyond Trading
Robinhood Markets, Inc. (HOOD - Free Report) has unveiled its first-ever credit card in an effort to expand its services beyond mainstream trading. The credit card, known as the Robinhood Gold Card, will be available exclusively to Robinhood Gold customers.
For Gold members who refer at least 10 other individuals to the subscription plan, the credit card will be made from real gold.
Deepak Rao, the general manager of Robinhood Money, stated, “I think it’s the heaviest credit card on the market. If you accidentally drop it on your table, everyone in the room will hear it.”
Reservations for a spot on the waitlist for the card have already begun. But HOOD will roll out the product broadly later in 2024.
While the credit card itself carries no annual fee, it would require a Robinhood Gold membership, which runs $5 per month or $50 annually.
The credit card will offer features like a 3% cash back in the form of reward points on spending and no foreign transaction fees.
Also, bookings made via Robinhood’s travel portal would give its users a 5% cash back.
The card will come with its own application that would make it relatively simple to create virtual and one-time cards and the ability to set up cards for up to five family members with spending limits.
Rao said that cardholders who lose their physical card would not have to update online subscriptions when their cards are replaced, since the card number used for online purchases will only be available through the app and not displayed on the physical card.
In order to become a one-stop solution for financial services, HOOD acquired credit card company X1 last year.
Rao was the co-founder and CEO of X1. He said that the offer of 3% cash back on all purchases is a first in the industry. Some other credit card issuers offer equal or higher rewards, which are limited to particular transactions or certain merchants.
As the company ventures further beyond trading with the launch of the credit card, it will help the online trading app protect itself from market turbulences.
Over the past six months, shares of HOOD have surged 99.2% compared with the industry’s 22.6% growth.
Image Source: Zacks Investment Research
Currently, Robinhood carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks from the same space are Piper Sandler Companies (PIPR - Free Report) and Interactive Brokers Group, Inc. (IBKR - Free Report) . PIPR sports a Zacks Rank #1 (Strong Buy), and IBKR carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, the Zacks Consensus Estimate for PIPR’s current-year earnings has been revised 9.1% upward. The stock has gained 32.5% over the past six months.
The Zacks Consensus Estimate for IBKR’s current-year earnings has been revised 1% higher over the past 60 days. Shares of IBKR have gained 25.5% over the past six months.