Trading app for online In an attempt to increase subscriptions to its premium tier and establish a stronger presence in the personal finance industry, Robinhood Markets introduced a new credit card on Tuesday.

With the intention of expanding its product line, the Menlo Park, California-based startup launched a debit card two years prior that allowed spare change investing. The credit card is now only available to Robinhood Gold clients.

In an effort to become a one-stop shop for financial services, Robinhood purchased Max Levchin-backed fintech startup X1 Inc. for roughly $95 million last year. The company capitalised on the popularity of fintech companies as a result of the expansion of digital banking.

By diversifying its operations outside trading, Robinhood may be able to withstand periods of market volatility, like the one that occurred in 2022 when the US Federal Reserve hiked interest rates repeatedly, frightening off individual investors.

The Robinhood Gold Card gives 3% cash back on purchases in the form of reward points and has no annual or foreign transaction fees. According to the company, reservations made through Robinhood’s travel platform will receive 5% cash back.

On Tuesday, reservations for a place on the card’s waitlist opened. Later this year, the business plans to launch the device widely.

Robinhood reported an unexpected profit in its most recent quarter, driven by increased interest income and a pickup in trading. The fintech’s stock has increased by almost 50% so far this year.

(Adapted from MarketScreener.com)