Robinhood’s announced that they are working on replacing its debit card offering with a “Cash Card.” The new card will come with multiple investing and rewards features, including the ability to buy crypto. The new cash card is adapting to the sentiments of Gen Z, who have an aversion to credit cards compared to earlier generations.
The Cash Card aims to offer credit card-style rewards with a debit card with no interest or fees. Robinhood’s users will be able to round up their purchases to the nearest dollar, with the surplus change going into investments in stocks or crypto. Those who choose to do this will receive a weekly “bonus” from worth $10.
Robinhood’s Chief Product Officer Aparna Chennapragada said that the younger generation is the debit card-primary focus. American Finance company is also trying to capitalize on the consumer shift towards debit cards and digital spending. The new launch will allow people to use different accounts for financing and expenditure. American Financial Service Company has also decided to replace the company’s existing cash management product, where investing and spending cash was a single brokerage account.