The emblem of Robinhood Markets, Inc. is seen at a pop-up occasion on Wall Road after the corporate’s IPO in New York Metropolis, U.S., July 29, 2021. REUTERS/Andrew Kelly
March 22 (Reuters) – Robinhood Markets Inc (HOOD.O) on Tuesday launched a brand new debit card that will permit spare change investing because it appears 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 might select to spherical up their change to the closest greenback and make investments it in belongings of their selection, Robinhood mentioned.
The corporate, referred to as a pioneer of commission-free buying and selling, would additionally reward customers of this function with a weekly bonus, it mentioned. The cardboard is being supplied by Robinhood Cash, a brand new subsidiary of the net brokerage.
Different client finance apps like Chime and Acorns Develop Inc additionally permit spare change investing, a function that lets customers make investments small quantities of cash and is especially interesting to youthful shoppers.
“The youthful era is debit card-primary, so that could be a main focus,” mentioned Robinhood’s Chief Product Officer Aparna Chennapragada, including that the corporate was making an attempt to capitalize on the buyer shift in the direction of debit playing cards and digital spending.
The money card will let clients maintain 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 also give clients the choice to obtain paychecks as much as two days upfront, by way of direct deposit, a function additionally supplied by digital funds large PayPal Holdings Ltd.
Customers might additionally select to routinely make investments a portion of their paychecks, Robinhood mentioned. The corporate additionally mentioned these new options could be freed from cost.
Reporting by Niket Nishant in Bengaluru; Enhancing by Shailesh Kuber
: .
