• The Cash Card will give users the option to receive paychecks up to two days in advance
• Robinhood formed the new subsidiary Robinhood Money and discontinued its existing cash management product
On Tuesday, Robinhood Markets Inc. (NASDAQ: HOOD) launched a new debit card that will allow users to invest their spare change. This comes as the company is looking to expand beyond trading and into more consumer finance verticals.
With the Cash Card, users can round up their spending to the nearest dollar and invest the change in assets of their choice, Robinhood said in a blog post.
The cards will be offered by Robinhood Money, a new online brokerage subsidiary.
The company, which pioneered commission-free trading, would also reward users of Robinhood Money with a weekly bonus of 10% to 100%, which is capped at $10.
Robinhood said that the cash card would let customers keep separate accounts for investing and spending. It will replace the company's existing cash management product, where investing and spending cash were all in their brokerage account.
The California-based company will also give customers the option to receive paychecks up to two days in advance via direct deposit.
Robinhood said that users could also automatically invest a portion of their paychecks.