Adam Lowe, Ph.D.’s Post

I hear a lot of sh*t taking about the Robinhood card but maybe, just maybe, they are brilliant. Let's be straight, Robinhood's super power is marketing. Remember their first campaign? They got a 1M users signed up pre-product launch with just a video. For their credit card, I think Robinhood knew they nobody would give a damn about another 2% cash back card. They needed a story worth telling. A limited edition solid gold card + 3% on everything + 5% on travel gets you there. Now let's switch gears to all the unit economics people who have a solid point... YES, 3% is crazy with a caveat. That you are assuming they got the standard 2% interchange... But consider this... I'm sure Visa and Mastercard were both itching for this deal. Therefore, isn't it entirely possible Robinhood negotiated a 3% concession for the first X years from the winner? (Disclaimer, this is full speculation but not insane). I'm sure that in the user terms, they are allowed to change rewards down the line but for at least a few years, they have the most insane rewards in the market by a 50% margin. For a company valued on growth, it's crazy but potentially genius.

#Robinhood's powerhouse push into credit cards is a strategic move to transform into an everyday #Finance platform. Beyond the allure of 3% cash back and zero foreign transaction fees, its aiding loved ones in building their credit profiles. The card also helps #consumers invest that #cash directly through #Robinhood's #brokerage account, seamlessly integrating #spending and #investing. And for the select few who crave luxury, Robinhood is offering solid 10-karat #gold versions of the new card as an exclusive perk for the first 5,000 customers who rally their #friends to join the Gold membership club. Robinhood's #creditcard move is a strategic play fueled by the acquisition of credit card startup #X1 for $95 million. Taking a page from #Apple's playbook, Robinhood aims to disrupt the credit card market by eliminating hidden #fees and applying #cashback daily, just like the #Apple Card. But the real test lies ahead. In a fiercely competitive market, Robinhood faces an uphill battle to carve out its share. Is the Robinhood card a game-changer for consumers? Only time will unveil the answer! #fintech #banking #financialservices #lending #credit #millennials #genzs #money #data #AI #payments #digitalpayments #mobilewallets #wealthmanagement #trading

Robinhood’s launch of its new Gold Card, featuring direct investment of cash-back rewards, sets a new standard and opens up exciting opportunities. This innovative move, merging spending and investing, invites us to enhance the value we deliver to our customers. For card issuers, it's an inspiring opportunity: How can we integrate more value-added services into our products? Robinhood's strategy of using rewards as investment tools inspires us. It’s time for us to lead in innovation, enhance customer engagement, and be at the forefront of the revolution in the credit card industry. Let's discuss how we can excel in this evolving landscape. #Creditcards #Paymentsinnovations https://lnkd.in/dA2XkB_K

🚨 𝘽𝙍𝙀𝘼𝙆𝙄𝙉𝙂: Late last Friday afternoon, Robinhood secured an additional line of credit from JP Morgan, allowing them to secure up to $3.375B if needed. 𝗔𝗿𝗲 𝘁𝗵𝗲𝘆 𝗹𝗮𝘂𝗻𝗰𝗵𝗶𝗻𝗴 𝗮 𝗰𝗿𝗲𝗱𝗶𝘁𝗰𝗮𝗿𝗱 𝗼𝗻 𝗧𝘂𝗲𝘀𝗱𝗮𝘆? Robinhood bought a company called X1 for $100M back in July. X1 is a platform that offers a no-fee credit card with rewards on each purchase. Robinhood noted in its announcement of the acquisition that this move is “an important step in our journey toward broadening our product offerings and deepening our relationship with existing customers.” Indeed, the acquisition of X1 gets Robinhood into the credit card business with the interchange fee revenue that comes with it. Robinhood currently earns interchange fees from its debit card. Amit Kukreja explained on Twitter: “Robinhood has $5B of cash on their books. They also are launching their new credit card offering next week, so this $3B in credit should help them facilitate the offerings and be in a solid position to fund user's credit needs if many people take advantage of that new card.” Read more about the credit line: https://lnkd.in/egkYiV9m Recently, Robinhood teased on social (see video below) that they’ll be making a big PR announcement on Tuesday March 26, and stated “The New Gold Standard is coming”. My guess is the launch of a branded creditcard. Now over to you: Do you think this big announcement is going to be the credit card launch? Or do you know/think something else? #robinhood #fintech #creditcard #financialtechnology #digitalbanking #bankingapp #fintechindustry #fintechnews 

#Robinhood's Latest #Game-Changer: #Invest Your #Cash Back! How Its #New #CreditCard Takes on #AppleCard Robinhood's Gold Card #launch marks a significant expansion beyond its brokerage roots. Building on the #X1 acquisition, the card offers compelling benefits like 3% cash back on all categories and 5% on #travel #bookings through Robinhood's portal, all without #annual or #foreign #transaction #fees. #Exclusive to Robinhood #Gold members, the card's $5 #monthly #fee #unlocks a suite of #features, including the #ability to #transfer #cash back to #brokerage #accounts for investments. One standout feature is the #family-oriented offering, allowing users to add up to #five family members as #cardholders, each with their own card and spending #controls, making it a useful tool for #parents looking to #teach financial responsibility or for assisting visitors from other countries. The card's #numberless design enhances #security, and with an #APR of 20.24% – 29.99%, varying with the market based on the #Prime #Rate, it aims to compete with #established players like #Apple #Card. The #Gold Card launch is part of Robinhood's strategic evolution, following previous #moves such as the #introduction of Robinhood Retirement, the #first individual retirement account (IRA) with a 1% match on eligible contributions. Gold Membership, a prerequisite for the Gold Card, #increases the match potential to up to 3%. These initiatives align with Robinhood's mission to #democratize #finance and offer inclusive financial solutions. The company's #CEO, #Vlad #Tenev, emphasized the goal of providing everyone with better access to the financial system, highlighting the card's role in bringing more people into the fold. With its innovative features and competitive offerings, Robinhood's Gold Card sets a new standard in the credit card market, catering to a wide range of consumers seeking flexible and rewarding financial products. #Robinhood #GoldCard #provelopers #X1 #Cashback #Familyorientedfeatures #Investments #FDICinsurance #Financialinclusion #Creditcardmarket

💳🔥 #FinTech Alert 🚨: Robinhood's Game-Changing #Cashback #Card! 💸 ICYMI: Robinhood's new Gold card offers a whopping 3% cashback on everything—aimed straight at #Apple Card and #ChaseSapphire. But can it keep up? 🤔 Here's the scoop: 🚀 The Gold card, priced at $5/month or $50/year, targets #Robinhood's 1.24m Gold members. With perks like 3% cashback, 5% on Robinhood portal travel, no foreign transaction fees, and up to 5 authorized users, it's a powerhouse built on last year's X1 Card acquisition. 💳✨ 👉 But is it too good to be true? 3% cashback might exceed revenue, but it's a lure for affluent customers hungry for perks. It's a direct jab at Chase Sapphire and Apple Card segments. 💥 👉 The key? Cross-selling into the wider Robinhood ecosystem. While the Visa Signature card offers a 2.2% interchange revenue, it pales in comparison to the cashback. 🔄 👉 However, using a separate app could break the cross-sell flow. Can they bridge the gap between transactional and card experiences? 🤔 👉 Robinhood's move into affluent segments poses a big threat to big banks. But can they turn those customers profitable? If so, that 3% might not last. 💼 👉 How will the cashback be redeemed? And with #Visa & #Mastercard settlements with merchants looming, what's the impact? 🤔 Exciting times ahead in the world of #FinTech and #CashbackCards! 💥🌟

Robinhood announced the launch of its new Gold Card, which aims to compete with the Apple Card by offering the ability to invest cash-back rewards. 𝗟𝗲𝘁’𝘀 𝗱𝗶𝘃𝗲 𝗶𝗻𝘁𝗼 𝘁𝗵𝗲 𝗹𝗶𝘀𝘁 𝗼𝗳 𝗻𝗲𝘄 𝗳𝗲𝗮𝘁𝘂𝗿𝗲𝘀: ► The Gold Card is available exclusively to Robinhood Gold members, requiring a subscription of $5 per month or $50 annually. Gold membership includes benefits like a 5% APY on uninvested brokerage cash. ► Cardholders earn 3% cash back on all categories, including dining and groceries, and 5% cash back on travel booked through Robinhood's new travel portal. The cash back can be transferred to brokerage accounts for investment purposes. ► A unique feature of the Gold Card is the ability to issue cards to up to five family members, allowing them to build credit and monitor spending. It offers flexibility in adding cardholders without the need for extensive information beyond name, date of birth, and Social Security number. ► The card introduces family-oriented financial products, marking Robinhood's first foray into this area, and includes features like spending limits and a child-safe mode. ► Users can create and delete virtual cards for one-time use. The APR for the card ranges from 20.24% to 29.99%, varying with the Prime Rate. ► The physical Gold Cards are numberless for security reasons, minimizing the hassle in case of loss or theft. Robinhood is also launching a separate app specifically for the Gold Card. ► The Gold account comes with up to $2.25 million FDIC insurance via partner banks. ► Robinhood aims to compete with Apple by offering a no-hidden-fees card that provides daily cash back, contrasting with Apple Card's rewards structure and fees. ► The new credit card reflects Robinhood's evolving business model, including generating interchange revenue from card transactions and expanding its service offerings, like the Robinhood Retirement IRA with up to a 3% match for Gold members. Checkout yesterdays presentation of the Gold Card by Vlad Tenev for more info in the video below👇 Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]  #robinhood #banking #fintech #bankingapp #investing #digitalbanking #creditcard #fintech #fintechindustry #financialtechnology #neobank #fintechnews 

2.2% cash back is no April Fools joke. Despite the April 1 timing of the announcement on its blog and via X 👇 SoFi really did launch a NEW 10% boost on cash back rewards for SoFi Unlimited 2% Credit Card members who set up direct deposit with SoFi Checking and Savings. That = 2.2% cash back on all purchases and 3.3% cash back on purchases on SoFi Travel. 💡Cashbackflation? Is this the start of a new phase in the escalation of cash back as a flat 2% becomes less of a differentiator? Robinhood launched 3% cash back for its Gold members a couple of weeks ago (although Gold members pay a $5 per month fee) and now SoFi has raised the stakes to 2.2% for its no-fee SoFi Unlimited 2% Credit Card (although it requires a banking relationship). Despite the minimal additional dollars earned the marketing opportunity to stand out as the best cash-back offer on the market is clear. 💡💡 All in one. 81% of Gen Z/Millennials would prefer to have all of their financial services in the same mobile app and SoFi is going all in on this strategy by providing meaningful rewards in exchange for a deeper relationship. #cashbackflation #flationmania #advertising #marketing #socialmediamarketing #cashback #creditcards #fintech

App Update: v2.2.1 This week, we're excited to announce that Candle now includes Robinhood debit card transactions in the Activity screen. This means you can now see all your transactions and orders in one place, making it easier to track your money. What's new: • Activity Screen: Now view and search transactions, access details, and find similar ones more easily. • Automation Builder: Open for waitlist sign-ups. • Performance: Various improvements and bug fixes for a smoother experience. Link in bio to download!

הבהלה לפלסטיק? מדוע חברות הטק רצות אחרי שוק כרטיסי האשראי? Eight months after acquiring credit card startup X1 for $95 million, Robinhood announced today the launch of its new Gold Card, with a list of features that could even give Apple Card users envy. Robinhood, better known for its brokerage app aimed at the everyday investor, is touting all sorts of benefits with its new card in an attempt to attract users. The card has no annual or foreign transaction fees. However, it will only be available for Robinhood Gold members, which costs $5 a month, or $50 annually. (Gold is a program that offers other benefits like 5% APY on an account’s uninvested brokerage cash.)