Robinhood launched the credit card as part of a continuing effort to expand the sphere of financial services.
Last Tuesday, March 26, a message was published on the mentioned company’s blog, which notes that the brand is aware of the need for change. This message also draws attention to the fact that more than 80% of adults in the United States own at least one credit card, but people continue to perceive reward systems, terms of use, interest rates, and fees as something amazing.
Robinhood said its card is rethinking the concept of using means of payment, giving consumers the ability to track how they spend money. It is worth noting that the company’s new product is available exclusively to participants of the Robinhood Gold program. In this case, it means a subscription that provides premium paid services.
The Robinhood card offers customers a 3% cashback on all purchases. The company has already formed a list of expectations for its new product. The card is expected to be more widely available later this year.
Robinhood CEO Vlad Tenev, during a conversation with media representatives, said that his company does not aim to simply issue a credit card that customers will use. He stated that the goal is a product that can become an industry leader and allow the firm to move forward.
Robinhood has become a popular brand as an app for trading stocks and investments. At the same time, the company intends to scale up its activities. In this case, it means not just an increase in the quantitative indicators of what already exists, but also the beginning of the history of presence in new operating directions. The company strives to open new horizons. This is an example of when the firm does not stay in the same position, moving forward and creating a multifunctional ecosystem of its business.
In 2023, Robinhood launched a retirement account. In February of the current year, the company expanded the mentioned offer to include gig workers. In this case, Robinhood cooperates with three gig economy firms, including Grubhub, Gopuff, and Taskrabbit.
The company, headed by Vlad Tenev, aims to capture new markets and expand its product line as part of its drive for growth.
The firm began offering bitcoin-traded funds to consumers after they were approved by the Securities and Exchange Commission. The company also provides brokerage services in the United Kingdom and cryptocurrency in the European Union.
Vlad Tenev, during a telephone conversation about the firm’s earnings in February, said that there was a request from customers to expand the Robinhood product line. According to him, the company is working in the appropriate direction. He also stated that the firm is exploring expansion opportunities in more jurisdictions.
A positive attitude towards credit card reward programs prevails in the consumer environment. At the same time, clients of financial service providers are dissatisfied with some aspects of such programs. Besides, in the United States, more than 70% of credit card holders reported difficulties in using payment means. Almost a third of them talk about problems when trying to redeem rewards.
As we have reported earlier, Alphabet Sells Off All of Its Shares in Trading App Robinhood.
