Robinhood extends reach with new credit card offering
Robinhood aims to reduce reliance on volatile trading revenues.
Fintech disruptor Robinhood Markets (NASDAQ: HOOD) saw its shares jump 4% on Wednesday, hitting their highest level since December 2021 after unveiling plans to launch a credit card.
The commission-free trading app, which recently expanded to the UK market, will offer a no-annual-fee credit card with 3% cashback rewards for its premium 'Gold' tier customers. By tying the card to its Gold program featuring options trading and margin accounts, Robinhood expects a boost to its profitable revenue streams.
Berto Tordecilla
The credit card rollout aligns with Robinhood's stated goal of driving profitable growth, following a surprise quarterly profit in February. The company has benefited from a retail trading renaissance amid bullish equity and crypto markets this year, with its stock surging over 50%.
After failed attempts, Robinhood finally launched its low-cost, no-forex-fees investing platform in the UK this month, eliminating commissions on over 6,000 US stocks while offering a 5% rate on uninvested cash balances. While facing stiff competition, the company's skyrocketing share price suggests confidence in its user-friendly approach resonating with British investors.
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