Robinhood, known for its popular investing app, has launched a new credit card exclusively for its Gold members. And while the Gold Card may only be available to select customers, it boasts a unique feature that’s making headlines – the ability to invest cash back bonuses directly into investments.
This exciting announcement comes just eight months after Robinhood’s acquisition of startup X1 for a whopping $95 million. Interesting to note, X1’s main feature was also the option to invest cash back benefits. Coincidence? We think not. It seems that Robinhood is hoping this enticing feature, along with other perks like the ability to add family members as cardholders (regardless of age or lack of Social Security number), will lure customers away from tech rival Apple and its credit card offering.
But why are tech companies suddenly venturing into the consumer credit game? Some may argue that Robinhood’s decision to add a credit card to its already diverse lineup of financial products is simply a natural expansion. However, it’s worth noting that Apple has also entered the credit game – a move that further solidifies the tech giant’s presence in the world of personal finance.
The trend of tech companies expanding their product offerings is nothing new – in fact, it was something I wrote about back in 2014. But in today’s world, it’s hard to ignore the fact that day-to-day consumer finance is becoming more and more intertwined with the ever-evolving world of technology. So, what’s next? Let’s dive into the details and discuss!
