Finance

Robinhood ups fintech competition with new debit card launch

The brand of Robinhood Markets, Inc. is seen at a pop-up occasion on Wall Avenue after the corporate’s IPO in New York Metropolis, U.S., July 29, 2021. REUTERS/Andrew Kelly

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March 22 (Reuters) – Robinhood Markets Inc (HOOD.O) on Tuesday launched a brand new debit card that may enable spare change investing because it seems to broaden past buying and selling and into extra client finance verticals, heating up competitors with fintech giants Chime and PayPal (PYPL.O).

With the brand new money card, customers may select to spherical up their change to the closest greenback and make investments it in property of their selection, Robinhood mentioned.

The corporate, often called a pioneer of commission-free buying and selling, would additionally reward customers of this characteristic with a weekly bonus, it mentioned. The cardboard is being supplied by Robinhood Cash, a brand new subsidiary of the net brokerage.

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Different client finance apps like Chime and Acorns Develop Inc additionally enable spare change investing, a characteristic that lets customers make investments small quantities of cash and is especially interesting to youthful customers.

“The youthful technology is debit card-primary, so that may be a main focus,” mentioned Robinhood’s Chief Product Officer Aparna Chennapragada, including that the corporate was making an attempt to capitalize on the patron shift in the direction of debit playing cards and digital spending.

The money card will let clients hold separate accounts for investing and spending, Robinhood mentioned. It should substitute the corporate’s present money administration product, the place investing and spending money have been all of their brokerage account.

The Menlo Park, California-based firm may even give clients the choice to obtain paychecks as much as two days prematurely, by way of direct deposit, a characteristic additionally supplied by digital funds large PayPal Holdings Ltd.

Customers may additionally select to mechanically make investments a portion of their paychecks, Robinhood mentioned. The corporate additionally mentioned these new options could be freed from cost.

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Reporting by Niket Nishant in Bengaluru; Modifying by Shailesh Kuber

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