Robinhood Launches Credit Card to Compete with Apple and Future Rivals

Robinhood Unveils Gold Card with Unique Investment Feature

On Tuesday, Robinhood revealed its new credit card, the Gold Card, which is currently only available to Robinhood Gold members. The card boasts a standout feature that’s making headlines: the ability to invest cash-back bonuses into various investments.

X1 Acquisition Paves the Way

The announcement comes just eight months after Robinhood’s acquisition of the startup X1 for $95 million. Interestingly, one of X1’s most prominent features was the ability to invest cash-back benefits, which is now a key selling point of the Gold Card. It’s clear that Robinhood’s acquisition of X1 was a strategic move to incorporate this feature into their own credit card offering.

Additional Perks and Benefits

In addition to the cash-back investment feature, the Gold Card offers a range of other perks designed to attract customers away from competitors like the Apple Card. These include the ability to add family members as cardholders, even if they’re young or without a Social Security number.

Tech Companies Venturing into Consumer Credit

Robinhood’s decision to offer a credit card can be seen as an extension of its expanding portfolio of financial products. However, they’re not the only tech company venturing into the consumer credit space. Apple, for example, also has its own credit card and is increasingly delving into the realm of personal finance.

A Trend in the Making

The expansion of tech companies into new product areas is not a new phenomenon. In fact, this trend was discussed as far back as 2014. However, it’s noteworthy to see how everyday consumer finance is becoming increasingly intertwined with the technology sector.

As Robinhood and other tech giants continue to innovate and expand their offerings in the personal finance space, it will be interesting to see how traditional financial institutions respond and adapt to this changing landscape.