On Tuesday, Robinhood announced that it will replace its current debit card with a “Cash Card” that will include a slew of new investment and rewards features, including the option to buy cryptocurrency.
According to a Robinhood survey, Gen Z has an aversion to credit cards when compared to previous generations.
To that purpose, the Cash Card aims to provide credit card rewards through a debit card with no interest or fees.
The card’s most striking feature is that Robinhood customers will be able to “round up” their purchases to the next dollar, with the extra change flowing towards stock or cryptocurrency investments. Those who pick this option will receive a $10 weekly “bonus” from Robinhood.
Users of the new card will be able to direct their wages to other accounts throughout the country, including one for cryptocurrency. For the first time, the card includes a Robinhood dedicated spending account—the company’s current debit card only has a single account that combines cash and brokerage services.
The crypto push by Robinhood
Robinhood’s CPO Aparna Chennapragada said that the new Cash Card’s crypto features are part of the company’s objective of generating “embedded crypto products.”
The goal is to get non-crypto natives to use Bitcoin and other tokens by incorporating them into activities people are already familiar with and providing familiar interfaces.
All of this comes as Robinhood declares its intention to be “crypto first” as it seeks to grow into new regions around the world.
However, the company has recently struggled, failing to capitalize on a rush of Dogecoin users who signed up last year and being reluctant to push out a crypto wallet it has long promoted.
The new Cash Card, which will be provided first to people on a waiting list, has the potential to help the company regain its former momentum if it becomes popular, as well as encourage an increase in crypto activity indirectly.