Robinhood Markets (HOOD) has launched a new credit card in the U.S. as it expands beyond its core business of online stock trading.
Robinhood, which offers commission-free trading and caters to retail investors, is issuing the new credit card as it strives to become a financial-services company.
The “Robinhood Gold Card” is being offered exclusively to members of the company’s subscription-based trading program.
The credit card has no annual cost or foreign-transaction fees and offers 3% cash back on all purchases.
The credit card is the latest in a series of new products from Robinhood as it expands beyond brokerage services.
In 2023, the company introduced retirement investment accounts for its customers. About 500,000 Robinhood retirement accounts have since been opened and they collectively hold about $3 billion U.S., according to Robinhood.
Robinhood previously bought credit-card issuer X1 for $95 million U.S. and used the acquisition to help it launch its new Gold Card.
Customers can access their credit card through a new app that’s separate from the Robinhood trading app.
Consumers who use the Robinhood credit card can also create virtual cards with disposable numbers for privacy and add up to five family members to an account.
Through a referral program, some Robinhood customers may be eligible to get a credit card made from actual 10-karat gold, said the company in a news release.
The stock of Robinhood Markets is up 124% over the last 12 months at $19.28 U.S. per share.
