BY COMFORT OGBONNA
Robinhood Markets has launched a new premium credit card aimed at high-income customers, marking its latest attempt to expand beyond trading services and challenge long-established players in the financial industry.
The company announced Wednesday that its new Platinum credit card will carry an annual fee of $695. In return, cardholders will receive cashback rewards and travel-style benefits valued at about $3,000 per year, according to the company.
With the move, Robinhood is entering a competitive segment long dominated by major financial institutions such as American Express and JPMorgan Chase. Premium credit cards in this category typically target affluent customers with high spending power by offering travel benefits, exclusive experiences and generous reward programs.
For comparison, the American Express Platinum Card charges an annual fee of $895 and advertises perks worth roughly $3,500, while Chase Sapphire Reserve from JPMorgan carries a yearly fee of $795 with benefits valued at around $2,700, according to information listed on their respective websites.
Robinhood executives say the new card is part of a broader strategy to reshape the company’s image and expand its offerings beyond stock trading. The platform first gained popularity among retail investors during the surge in speculative trading in recent years, but it is now seeking to present itself as a more comprehensive financial services provider.
“We want to go after the legacy players’ customers,” said Deepak Rao, vice president and general manager of Robinhood Money. He noted that American Express serves as a clear benchmark in the premium card market.
Beyond competing directly with established credit card brands, the company sees the new product as a way to attract wealthier clients who may eventually use other Robinhood services, including investing and financial management tools.
Robinhood has also introduced additional products aimed at reflecting the changing needs of its customer base. The Menlo Park, California-based company recently launched custodial investment accounts that allow parents or guardians to invest money on behalf of a child.
These accounts allow users to set up recurring investments and invite family members or friends to contribute funds. When the child reaches adulthood, the account’s assets are automatically transferred to them.
According to Abhishek Fatehpuria, Robinhood’s vice president of product, the company’s users are growing older and their financial needs are becoming more complex.
“Many of our customers were first-time investors when they joined us,” Fatehpuria said. “Now their median age is in the mid-30s, and we want Robinhood to be the place where we can continue serving them as their financial lives evolve.”
The launch of the premium card highlights Robinhood’s broader effort to transform from a trading app into a full-scale financial platform offering banking, investing and wealth-building services for a more mature and affluent client base.