By Niket Nishant
(Reuters) – Online trading app Robinhood (NASDAQ:) Markets launched a new credit card on Tuesday, as it seeks to expand its position in the personal finance market and boost subscriptions to its premium tier.
The credit card, available exclusively to Robinhood Gold customers, comes two years after it launched a debit card to enable investments in reserve coins, with the Menlo Park, California-based company looking to broaden its product offering.
Robinhood bought Max Levchin-backed fintech startup X1 Inc for about $95 million last year, capitalizing on the popularity of fintech firms due to the growth of digital banking in its bid to become a one-stop shop for financial services.
Expanding beyond its core trading business could also help protect Robinhood from bouts of market turbulence, as when a series of interest rate hikes by the U.S. Federal Reserve in 2022 spooked retail investors.
The Robinhood Gold Card would have no annual fees, no foreign transaction fees, and offers 3% cash back, in the form of reward points, on spending. Bookings made through Robinhood’s travel portal would earn a 5% cash back, the company said.
Reservations for a spot on the waiting list for the card began Tuesday. The company plans to launch the product on a large scale later this year.
In its latest quarter, Robinhood posted a surprise profit, driven by a rise in interest income and a pick-up in trading. Fintech shares are up about 50% this year.