(Bloomberg) — Robinhood Markets Inc. unveiled a new debit card with features that could prompt users to invest in small increments when making everyday purchases.
The Robinhood Cash Card will allow customers to round up their conversion to the nearest dollar, investing the difference in an asset of their choice, the company said on Tuesday. As a temptation to use the feature, Robinhood will offer bonuses ranging between 10% and 100% on these weekly round-ups, with a maximum limit of $10.
“The next big step in investing is actually tackling the expense,” Robinhood Chief Product Officer Aparna Chennapragada said in an interview on Bloomberg TV. “We think this is expanding the definition of investing. You don’t have to wait until you accumulate wealth and then invest to grow it.”
Information in a beta version of Robinhood’s iPhone app had previously indicated that the company was close to releasing a cash card. Chief Executive Officer Vlad Tenev also indicated on an earnings call that Robinhood had a day-to-day spending product in progress.
Read more: Robinhood plans to spend account service with new Cash Card
Robinhood shares were up 1.3% to $13.20 in New York trading at 9:40 a.m. The stock is down 27 percent this year.
– With assistance from Emily Chang.