The investment platform Robinhood has unveiled “Cash Card”, its new debit card allowing to invest in stocks and cryptocurrencies in a fully automated way. A strategic choice aimed at attracting a younger audience more familiar with this means of payment, but also to simplify access to investing in both stocks and cryptocurrencies.
Robinhood rolls out new debit card
US-based trading platform Robinhood has unveiled a new scalable debit card, including the ability to invest in cryptocurrencies.
This new “Cash Card” will offer a very special option to its holders by allowing them to round up the amount of their transaction to the next unit and invest the difference automatically. For example, on a purchase of $15.20, the amount will be automatically rounded up to $16 and the 80 cents difference will be invested automatically.
In the same vein, Robinhood will also offer its clients the possibility to invest part of their salary directly and automatically. There will be multiple investment options, including stocks, but also in cryptocurrencies. Those taking advantage of this option will also receive a “bonus” of up to $10 on a weekly basis.
This debit card will be provided and distributed by Robinhood Money, a subsidiary developed specifically for this purpose. It will join the existing ones such as Robinhood Crypto and Robinhood Financial.
Note that this new service could be a great option for trading and investment enthusiasts, as the card will be usable anywhere in the world where the Mastercard network is also supported. In addition, the card will be offered in virtual form to be compatible with many payment services like Google Pay, Apple Pay or even Samsung Pay.
The strategic choice of cryptocurrencies for Robinhood
The release of Robinhood’s new card had been expected for a few months since the project had already been publicly announced by the company. But overall, the company’s interest in cryptocurrencies is not new.
We mentioned it back in August, half of Robinhood’s revenue in Q2 2021 was already coming from cryptocurrency trading through its app, including largely through Dogeccoin (DOGE).
More recently, early last month, the company had announced that it wanted to expand globally, saying that it wanted to put cryptocurrency at the forefront to achieve this. According to her, it is this sector that will allow her to open the way to international.
A strategy also confirmed by the public release in the very near future of its wallet, which is currently in the beta testing phase. The company has also indicated that it is working on an increased listing of crypto-currencies on its platform, as it currently offers only 7, including Bitcoin (BTC), Ether (ETH), Dogecoin or Litecoin (LTC).
Finally, according to Robinhood, the deployment of this new card aims both to attract a younger audience more inclined to use payment cards than older generations, but also to simplify access to investment for the greatest number.