Robinhood extends reach with new credit card offering

Robinhood aims to reduce reliance on volatile trading revenues.

Robinhood extends reach with new credit card offering
Robinhood HOOD

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.

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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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