Robinhood Markets Inc (NASDAQ:HOOD), the once trendy US share dealing service, is introducing a cash card “to help a new generation start their investing journey”.
According to the company’s blog, the introduction of a cash card builds on its mission to democratise finance for all customers by giving debit card customers the same benefits and rewards that were once reserved for credit card holders.
The new Cash Card will replace Robinhood’s existing Cash Management product, where customers’ investing and spending cash were all in their brokerage account. With the new card, customers can have separate accounts for investing and spending.
Robinhood claims that Generation Z – generally taken to mean those born a few years either side of the turn of the century – is far less than earlier generations of Americans on credit cards, citing a recent survey that indicated only 17% of Gen Z respondents listed credit cards as their preferred payment method, compared to 46% of millennials (roughly those born between 1981 and the mid-nineties) and 47% of baby boomers.