The new Robinhood credit card is the successor to the Apple Card with the possibility of investing in the form of cash back

Eight months later launching a credit card X1 $95 million company Robinhood today announced the launch of its new Gold Card, with an inventory of features that even Apple Card users would envy.

Robinhood, higher known for its brokerage app aimed toward on a regular basis investors, is touting all sorts of advantages associated with its new card in an attempt to attract users. The card has no annual fees or foreign transaction fees. However, it can only be available to Robinhood Gold members and costs $5 per thirty days or $50 per 12 months. (Gold is a program that gives other advantages, corresponding to 5% APY on uninvested brokerage funds in the account.)

Gold Card users can earn 3% cash back across all categories, including restaurants and groceries, and 5% cash back when booking travel on the new travel site Robinhood. The cashback could be transferred to brokerage accounts that could be used for investments corresponding to purchasing stocks, the company says. The possibility of investing using cashback is the so-calledAn incredible innovation that X1 had developed before acquiring it.

Another interesting feature of the Gold Card is the ability to provide cards to members of the family. This is the first time Robinhood has introduced a family-oriented financial product, Robinhood Money General Manager Deepak Rao said TechCrunch. Rao was the founder and CEO of X1 before joining Robinhood during the acquisition.

Users will give you the chance to add up to five members of the family to their account as cardholders, and every cardholder will receive their very own card. Additional cardholders could be of any age, so parents can assist teens construct credit and monitor spending. The possibility of issuing cards to members of the family will even apply to people coming from other countries.

“The user can share the cards with parents, children or guardians and set up the right type of control and protection while helping them build credit,” Rao said. “They haven’t got to provide any information apart from their name, date of birth and Social Security number, in the event that they have one. If you are concerned about spending limits, you may set a dollar amount limit in addition to a child-safe mode.

The card also allows users to create and delete virtual cards for one-time purchases, and the APR shall be 20.24% – 29.99%, which Robinhood says will vary by market based on the Prime rate.

Robinhood also makes its physical cards uncountable, so in the event that they are lost or stolen, users won’t have to replace all of their card information. Rao said the company is also launching a new app for the new gold card, which shall be completely separate from the investment app.

Generally, the Gold account offers up to $2.25 million in FDIC insurance through a network of partner banks.

Cash back

Robinhood’s entry into the credit card market clearly follows the example of corporations like Apple, which has seen huge success with its own card (despite problems with its cooperation with Goldman Sachs). By waiving hidden fees like annual fees or late fees and applying cash back on daily basis, Apple Card exceeded over 12 million users from January.

Many cards offer cash back, but often limit it to certain categories. This card is generous in its cash back offer. For example, Apple offers 3% cash back on all purchases made at Apple and on purchases made at select merchants using Apple Card with Apple Pay. Generally, purchases made with Apple Card using Apple Pay earn users 2% back. But Apple also offers Family Sharing and a high-yield savings account with an rate of interest of 4.5%.

Of course, Robinhood will earn revenue from credit cards, that are standard transaction fees paid by merchants. He earned exchange income from his debit cards, which launched in 2018. Coastal Community Bank is a banking partner for Robinhood under the new Gold Card.

The new credit card is part of Robinhood’s business model and offerings which have evolved over the years. In December 2022, the company announced Robinhood retirement, which it billed as the “first and only” individual retirement account (IRA) with a 1% contribution on every qualifying dollar. Gold Membership, required to receive the Gold Card, increases your qualifying match to a maximum of 3%.

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