(Bloomberg) -- Robinhood Markets Inc. unveiled a new debit card, with features that could prompt users to invest in small increments while making everyday purchases.
The Robinhood cash card will allow customers to round up their change to the nearest dollar, investing the difference in assets of their choice, the company said Tuesday. As an enticement to use the feature, Robinhood will offer a bonus of between 10% and 100% on these weekly round-ups, capped at $10.
“The next big step in investing is really tackling spending,” said Aparna Chennapragada, Robinhood’s chief product officer, in an interview on Bloomberg TV. “We think that this is expanding the definition of investing. You don’t have to wait until you accumulate wealth to be able to then invest to grow it.”
Information in a beta version of Robinhood’s iPhone app previously indicated the company was close to releasing a cash card. Chief Executive Officer Vlad Tenev also hinted on an earnings call that Robinhood had a day-to-day spending product in progress.
Robinhood shares rose 1.3% to $13.20 at 9:40 a.m. in New York trading. The stock has declined 27% this year.
--With assistance from Emily Chang.