Robinhood Markets, Inc. Launched a new premium credit card Wednesday, directly challenging American Express and JPMorgan Chase in the high-complete rewards market. The Platinum card, featuring an annual fee of $695, aims to attract affluent consumers with a rewards package the company values at $3,000 annually.
The move represents a significant expansion for Robinhood, traditionally known as a commission-free trading platform, as it seeks to establish itself as a broader financial services provider. The card’s annual fee undercuts the $895 charged by American Express for its Platinum card and the $795 fee for the Chase Sapphire Reserve, according to the company.
“We want to go after the legacy players’ customers,” said Deepak Rao, vice president and general manager of Robinhood Money, identifying American Express as the primary benchmark. Rao indicated the card is intended to draw in higher-income clients who may then utilize other Robinhood financial products. The company anticipates rewards will include 10% cash back on hotels and rental cars, 5% back on dining and flights, and unlimited Priority Pass airport lounge access.
The launch coincides with the introduction of custodial investment accounts designed for parents and guardians to manage investments for minors. These accounts allow for automatic recurring investments and contributions from family and friends, with ownership transferring to the child upon reaching adulthood. Abhishek Fatehpuria, Robinhood’s vice president of product, explained the move as a response to the evolving needs of its customer base.
“Our customers are maturing and starting to have more complex financial needs,” Fatehpuria stated. “Many of our customers were first-time investors with us. And now their median age is in the mid-30s. We want to make Robinhood the place where People can serve them.”
Bank of America analyst Mihir Bhatia described Robinhood’s entry into the super-premium credit card market as “an incremental negative” for American Express, according to a note released Thursday. Bhatia highlighted American Express’s increasing focus on younger demographics, noting that 75% of new U.S. Platinum and Gold card customers now come from younger age groups, with average ages of 33 and 29 respectively.
The Robinhood Platinum card’s rewards are partially tied to the Robinhood ecosystem, including its brokerage account and a proprietary travel portal, designed to encourage deeper customer engagement with the platform. Credit limits on the Platinum Card are five times higher than those offered on Robinhood’s Gold Card, targeting the same high-spending customers pursued by American Express and Chase.
