Trading App Robinhood Unveils Premium Credit Card to Compete with AmEx

Investment platform Robinhood introduced a high-end credit card Wednesday aimed at affluent customers. The $695 annual fee card offers $3,000 in benefits as the company seeks to challenge established players like American Express.

Investment platform Robinhood unveiled a premium credit card Wednesday as the company attempts to break into territory long controlled by financial giants like American Express and JPMorgan Chase.

The new Platinum card comes with a $695 yearly fee but provides users with rewards and perks valued at $3,000, according to the company’s announcement.

By comparison, American Express charges $895 annually for its Platinum offering while JPMorgan’s Chase Sapphire Reserve costs $795 per year. These competing cards provide premium benefits worth $3,500 and $2,700 respectively, based on information from their official websites.

This credit card launch represents part of Robinhood’s broader transformation as it works to move beyond its reputation as a platform primarily used for risky trading activities. With its user base aging, the company aims to rebrand itself as a comprehensive financial services provider.

“We want to go after the legacy players’ customers,” stated Deepak Rao, vice president and general manager of Robinhood Money, noting that AmEx was “obviously the benchmark.”

Rao explained that the card could serve as a gateway to attract affluent clients who might then utilize Robinhood’s additional financial products and services.

The California-based firm, headquartered in Menlo Park, simultaneously introduced custodial investment accounts designed for parents and guardians to manage investments for minors.

These accounts allow users to set up automatic recurring investments and permit family members and friends to make contributions. Once the child becomes an adult, ownership of the assets transfers automatically.

“Our customers are maturing and starting to have more complex financial needs,” explained Abhishek Fatehpuria, Robinhood’s vice president of product.

“Many of our customers were first-time investors with us. And now their median age is in the mid-30s. We want to make Robinhood the place where we can serve them.”