The popular cryptocurrency and stock trading app Robinhood intends to broaden its product offering by acquiring bank card company X1. The $95 million purchase will provide Robinhood a fresh source of revenue and improve its relationships with current users.
Robinhood aims to improve the ecosystem of its financial services with the aid of the income-based bank card from X1 and special options like rewards, a risk-free trial, and one-time use playing cards.
Robinhood has been successful in diversified its business portfolio.
As part of its continued efforts to expand outside of its primary trading platform, Robinhood has made significant headway in broadening its business portfolio, and the acquisition of bank card fintech X1 is a significant move in that direction.
Along with MarketSnacks, Cove Markets, Binc, Say, and Ziglu, X1 is the latest business that Robinhood has bought. The acquisitions are designed to help Robinhood realize its goal of offering a broad range of economic services.
Robinhood intends to increase its revenue and fortify its ties to its enormous customer base by entering the bank card industry. The company is aware of the value of diversification to maintain long-term growth in light of the drop-in monthly active clients and income decline in its crypto trading business. With this acquisition, the company is continuing its strategy of diversifying its product offerings and luring a larger market.
X1 starting credit card information.
The financial technology community is quite interested in the bank card fintech X1 that Robinhood is purchasing. The business touted a sizable waiting list of 500,000 people eager to receive their bank card in 2022. This demand demonstrates the market’s appetite for cutting-edge bank card solutions and contributes to the growing potential of X1.
With the help of the income-based credit card that X1 offers, a variety of customers can access credit based on their levels of income. Additionally, X1 distinguishes itself with features like awards, free trial cards, and single-use bank cards. These specific benefits give cardholders more comfort and freedom, which enhances their overall financial experience.
In recent fundraising rounds, X1 received $62 million from well-known VC firms including Craft Ventures, Soma Capital, and FPV, demonstrating that investors have a lot of faith in the startup’s objective and chances for success. Additionally, the involvement of Wesley Chan, an investor in both X1 and Robinhood, highlights the parallels and shared commitment to innovation between the two businesses in the financial services industry.