Online broker Robinhood announced the replacement of debit cards with new Cash Cards with the possibility of receiving cashback in digital assets. The Verge writes about this.
The proposal is focused on the needs of generation Z, which, according to research company, does not favor many banking products.
There are no commissions or interest on Cash Card. When buying goods and services, spending is rounded to the nearest dollar. Robinhood diverts “surplus” to buy stocks or cryptocurrencies, depending on the client’s preferences. As part of this option, a weekly bonus up to $10.
Users of the new card will also be able to organize the transfer of salaries to separate accounts, including for converting to cryptocurrencies.
Cash Card offers a dedicated Robinhood spending account – the company’s existing debit card offers only one account that combines cash and brokerage services.
The company called the new card an element of the strategy for creating “embedded crypto products”. Her idea is to expand the audience to those who are not associated with digital assets, offering them familiar interfaces.
In July CEO Robinhood Vlad Tenev called cryptocurrencies the basis for the future development of Robinhood.
In the 2022 year, the company plans to add products designed to support long-term investments, expenses and savings. Some of these include instant deposits and withdrawals to and from debit cards.
During a recent conference with CFO analysts, Jason Warnick revealed that Robinhood will introduce tax-advantaged retirement accounts by summer, and later — issuance of loans.
In January, the online broker presented a disappointing forecast for the first quarter. Robinhood shares have fallen to a new all-time low.
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