LOS ANGELES: Robinhood Markets Inc is seeking to challenge American Express Co (Amex) with a credit card it’s calling the “actual” platinum card as the company pushes beyond the retail-trading platform it’s best known for.
Robinhood’s credit card, which has a US$695 annual fee and will be plated with real platinum, features 5% cash back on dining, a US$250 annual DoorDash Inc credit, 10% cash back on hotels and rental cars, and a US$250 annual credit on autonomous-vehicle rides, among other perks.
The introduction of the Platinum card comes two years after Robinhood unveiled a Gold card, which has no annual fee.
Customers demanded a higher-end card after hitting the Gold card’s spending limits, according to Deepak Rao, general manager and vice president of Robinhood’s Money business.
“People have tried to buy satellites on the cards,” Rao said in an interview, calling many of Robinhood’s customers “high spenders.”
“We wanted to go all the way in and give you a platinum card if we’re calling it a platinum card.”
Robinhood is joining the crowded field of credit-card companies vying for affluent consumers willing to pay hefty annual fees for airport-lounge access, in-demand concert tickets and other luxury perks.
Amex revamped its own platinum card late last year, upping its fee to US$895 and refreshing some of its well-known travel and hospitality rewards.
Menlo Park, California-based Robinhood is aware many of its customers’ lifestyles are changing as they age, offering them a new “family investing experience,” which pulls other brokerage accounts into the Robinhood app with various permission levels, giving clients a better view of their overall finances.
Families also will be able to establish custodial accounts for minors as well as trust accounts – new features for Robinhood customers as they move from straightforward equities trading to demanding a full suite of financial services. — Bloomberg
