A new debit card from Robinhood Markets Inc HOOD will round up the “spare change” from daily purchases and invest it in cryptocurrency.
What Happened: In a blog post on Tuesday, Robinhood announced the launch of the new card dubbed “the Robinhood cash card.”
The card’s main feature will be an option to automatically invest spare change in stocks or cryptocurrencies like Bitcoin BTC/USD, Ethereum ETH/USD, and Dogecoin DOGE/USD.
To do this, the card will link the user’s brokerage account to a separate spending account. Once they make a purchase, Robinhood will round up transactions to the nearest dollar and use the extra cash to invest in a stock or cryptocurrency of the customer’s choice.
The new card will replace the existing Cash Management product.
“The Cash Card builds on our mission to democratize finance for all by giving debit card customers the same benefits and rewards that were once reserved for credit-card holders,” said Robinhood.
As a bonus, Robinhood plans to give customers up to $10 of their weekly round-up money per week. Users will also be entitled to savings at certain retail stores like H & M Hennes & Mauritz AB HNNMY, Chevron Corporation CVX, and Chipotle Mexican Grill, Inc. CMG.
“This is spending the Robinhood way — no monthly fees, no subscription fee, no in-network ATM fees, no overdraft fees, and no account minimum fees that cut into our customers’ investments,” the retail trading platform said.
Price Action: Robinhood shares closed 2.84% higher on Tuesday at $13.42.
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