In brief
- A new "Cash Card" will replace Robinhood's existing debit card and offer rewards.
- The card will let users "round up" to invest in crypto and other investments.
Robinhood announced on Tuesday that it's replacing its current debit card offering with a "Cash Card" that will come with a variety of new investing and rewards features, including the ability to acquire crypto.
The new card is tailored to the sentiments of Gen Z, who have an aversion to credit cards compared to earlier generations, according to a bank survey cited by Robinhood.
To that end, the Cash Card aims to offer credit card-style rewards with a debit card that comes with no interest or fees.
One notable feature of the card is that Robinhood users will be able "round up" their purchases to the nearest dollar, with the surplus change going into investments in stocks or crypto. Those who choose to do this will receive a weekly "bonus" from Robinhood worth up to $10.
Users of the new card will also be able to arrange for their paychecks to be deposited into separate accounts at the country, including one for crypto. The card also offers a Robinhood dedicated spending account for the first time—the company's existing debit card offers only a single account that blends cash and brokerage services.
Robinhood's crypto push
In discussing the crypto aspects of the new Cash Card, Robinhood's CPO Aparna Chennapragada told Decrypt that they are part of the company's strategy of creating “embedded crypto products."
The idea is to turn non-crypto natives onto Bitcoin and other tokens by building them into activities with which they are already familiar, and by offering familiar interfaces.
All of this comes at a time when Robinhood says it intends to be "crypto first" in a push to expand into new markets around the world.
Recently, however, the company has stumbled as it has failed to capitalize on a flood of Dogecoin users who signed up last year, and has been slow to roll out a crypto wallet it has long been touting.
The new Cash Card, which will be offered first to those on a waiting list, could help the company regain its earlier momentum if it catches on, and could indirectly spur an uptick in crypto activity.