Robinhood’s stock has been battered by weakness in cryptocurrencies, and the firm is expanding into other operations, such as credit cards, to attract new customers.
- On Wednesday, in an event called “Take Flight,” Robinhood launched its platinum credit card with an annual fee of $695.
- Robinhood is offering $3,000 in annual value, a $500 DoorDash and restaurant credit, and 5% back on flights and 10% back on hotels.
- American Express’ Platinum card has an annual fee of $895 and offers $3,500 in value, including 5x points on flights & hotels and $200 Uber Cash.
Robinhood Markets, Inc. is targeting affluent consumers as it moves beyond its traditional brokerage and cryptocurrency roots, unveiling a platinum credit card aimed at competing with American Express and JPMorgan Chase & Co. The move sent Robinhood shares about 2% higher in after-hours trading on Wednesday.
At its “Take Flight” event on Wednesday, the company introduced the $695-a-year platinum card, which includes travel perks and 5% cash back on dining, among other benefits.
Robinhood’s stock is on pace for a second consecutive daily gain if momentum holds, after closing 8% higher on Wednesday. Even so, shares remain down more than 27% this year, pressured by weakness in its crypto business amid a retreat in Bitcoin prices.
The company has been expanding into new verticals, including prediction markets and options trading, to diversify its revenue streams and move beyond its image as a crypto-linked platform.
How Does Robinhood Platinum Card Fare Versus Rivals?
Robinhood’s platinum charges are lower than JPMorgan Chase’s Sapphire Reserve credit card, which has an annual fee of $795 and offers $2,700 in annual value through travel and lifestyle benefits. The Sapphire Reserve credit card offers customers 4x points on flights and hotels directly booked through it.
Citigroup, which last year launched the Strata Elite credit card, charges an annual membership fee of $595 and offers nearly $1,500 in value if customers take advantage of its benefits. The Strata Elite card offers a $300 discount on a hotel booking and a $200 annual splurge credit, redeemable at select partners, including Best Buy and Live Nation.
On the other hand, American Express’ Platinum card has an annual fee of $895 and offers $3,500 in value, including 5x points on flights & hotels and $200 Uber Cash.
| Card | Company | Annual Fee | Estimated Annual Value | Key Rewards | Notable Perks |
| Robinhood Platinum | Robinhood Markets, Inc. | $695 | ~$3,000 | 5% back on flights, 10% back on hotels, 5% cash back on dining | $500 DoorDash & restaurant credit; ~$800 annual travel & hotel credit; unlimited lounge access; Global Entry credit; 99.9% pure platinum physical card |
| Sapphire Reserve | JPMorgan Chase & Co. | $795 | ~$2,700 | 4x points on flights & hotels booked directly | Travel & lifestyle benefits bundle |
| Strata Elite | Citigroup | $595 | ~$1,500 | Hotel & partner redemption benefits | $300 hotel discount; $200 annual “splurge” credit (Best Buy, Live Nation partners) |
| Platinum Card | American Express | $895 | ~$3,500 | 5x points on flights & hotels | $200 Uber Cash; premium travel perks |
What Robinhood’s Platinum Card Also Offers
Robinhood is offering $3,000 in annual value, a $500 DoorDash and restaurant credit, and 5% back on flights and 10% back on hotels. “We want you to travel in style, so with the platinum card, you will get unlimited lounge access, and you will also get easy free global entry, and you get about $800 to annual travel and hotel credit,” Robinhood’s Vice President and General Manager of Robinhood Money, Deepak Rao, said.
“Unlike our competitors, we’re not going to give you a platinum card with no platinum inside it. This one is going to be the first actual platinum card with 99.9% pure platinum, and the rest, 0.1%, is my blood, sweat, and tears,” Rao said during the Take Flight event.
Robinhood already offers a gold credit card, available exclusively for Gold members, with no annual fee and 3% cash back across all categories.
What Is Retail Thinking?
Retail sentiment on Robinhood jumped to ‘bullish’ from ‘bearish’ territory a day ago, with message volumes at ‘low’ levels, according to data from Stocktwits.
“Hood and SoFi gives a better APY than traditional banks. Smarting up. Traditional banks take dumb dumb money, invest and give back peanuts, but charge high interest on car loans, mortgages, and credit cards. Traditional banks are the real scammers. Knowledge is power,” a user on Stocktwits said.
Shares of Robinhood have gained more than 83% in the last 12 months.
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