Online broker Robinhood has announced the replacement of debit cards with new Cash Cards with the possibility of receiving cashback in digital assets.
There are no commissions or interest on Cash Card. When buying goods and services, spending is rounded to the nearest dollar. Robinhood diverts “surplus” to buy stocks or cryptocurrencies, depending on the client’s preferences. As part of this option, a weekly bonus of up to $10 is due.
According to the company, the users of the new card will also be able to organize the transfer of salaries to separate accounts, including for converting into cryptocurrencies.
Cash Card offers a special account for Robinhood spending: the company’s existing debit card offers only one account that combines cash and brokerage services.
The company has said that the new card is an element of the strategy for creating “embedded crypto products.” The idea is to expand the audience to those who are not associated with digital assets, offering them familiar interfaces.