Niket Nishant
(Reuters) – Online trading app Robinhood (NASDAQ:) Markets launched a new credit card on Tuesday as it seeks to expand its position in the personal finance market and boost premium subscriptions.
The credit card, available exclusively to Robinhood Gold customers, comes two years after the launch of a debit card that lets you invest spare change, as the Menlo Park, California-based company seeks to expand its product offerings.
Last year, Robinhood bought Max Levchin-backed fintech startup X1 Inc for about $95 million, riding on the popularity of fintech companies due to the rise of digital banking in an attempt to become a one-stop shop for financial services.
Moving beyond its core trading business could also help protect Robinhood from bouts of market turbulence, such as when a series of interest rate hikes by the U.S. Federal Reserve in 2022 spooked retail investors.
The Robinhood Gold Card will have no annual fee, no foreign transaction fees, and offers 3% cash back in bonus points on spending. Bookings made through travel portal Robinhood will earn 5% cash back, the company said.
Reservations for spots on the card’s waiting list began Tuesday. The company plans to widely distribute the product later this year.
Robinhood reported a surprise profit in its latest quarter, driven by rising interest income and a rebound in trading. Fintech stocks are up about 50% this year.