Robinhood takes on Amex with $695-a-year platinum credit card

Robinhood, which began life as a stock trading app, claims more than 700,000 gold card users, with over $10 billion in annualised spending.

Now the firm is targeting the high-income market dominated by Amex and JPMorgan Chase with the launch of the invite-only platinum card, which promises credit limits up to five times higher than its gold counterpart.

The platinum card may come with an annual fee of $695 but Robinhood says it will offer over $3000 in value a year, with five per cent cash back on dining, a variety o health and wellness perks, an 10% cash back on hotels and rental cars and another five per cent on flights booked through its app.

“We built the Gold Card to be the best card for everyday spending, and customer demand showed us there was room to push the boundaries even further,” says Deepak Rao, GM and VP, Robinhood Money. “The Platinum Card offers higher limits, elite rewards and luxury benefits, and raises the bar for what customers should expect from a premium credit card."

Elsewhere, the firm is introducing custodial accounts, which will allow parents and guardians to invest on behalf of a minor, with assets legally owned by the child and automatically transferred when they reach the age of majority.

“We’re reimagining what wealth-building will look like for the next generation of families as we prepare for the Great Wealth Transfer,” says Abhishek Fatehpuria, VP of product, Robinhood.