Robinhood launches debit card with cryptocurrency cashback

The online broker Robinhood announced replacement of its debit cards with new Cash Card offering cashback in digital assets. The Verge reports.

The offering is aimed at Generation Z, which, according to the company’s research, does not favour many banking products.

There are no fees or interest on Cash Card. When purchasing goods and services, expenditures are rounded up to the next dollar. Robinhood channels the ‘excess’ toward purchasing stocks or cryptocurrencies, according to the customer’s preferences. Under this option, a weekly bonus of up to $10 is offered.

Users of the new card will also be able to arrange payroll deposits to separate accounts, including for conversion into cryptocurrencies.

Cash Card offers a dedicated spend account for Robinhood — the company’s existing debit card offers only a single account that combines cash and brokerage services.

In a statement, the company called the new card a component of a strategy to build ’embedded crypto products’. The idea is to broaden the audience to include those not connected to digital assets, offering familiar interfaces.

In 2021, Robinhood CEO Vlad Tenev called cryptocurrencies the foundation of Robinhood’s future development.

In 2022 the company plans to add products designed to support long-term investing, spending and saving. Some of them include instant top-ups and withdrawals from debit cards.

During the latest analyst conference, CFO Jason Warnick said that by summer Robinhood would roll out tax-advantaged retirement accounts, and later — the issuance of loans.

Earlier in January, online broker presented a disappointing forecast for the first quarter. Robinhood’s shares tumbled to a new all-time low.

Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news, infographics and opinions