Robinhood, a popular stock trading app, has struck a deal to acquire X1, an innovative credit card startup, for a significant $95m cash settlement.
Robinhood is a leading platform enabling commission-free investing in stocks, ETFs, options, and cryptocurrencies. X1, on the other hand, is an impressive startup founded by ex-Twitter executive, noted for its stainless steel X1 Card that employs cutting-edge technology to offer unique financial solutions.
The acquisition arises from Robinhood’s ambition to expand beyond its initial concentration on stock trading, providing a comprehensive suite of financial services. The value of this strategic move is an impressive $95m, manifesting Robinhood’s dedication to broadening its financial product range.
Robinhood’s primary offering is an application that makes investing in the stock market more accessible and affordable. It allows users to invest in a wide array of financial instruments without any trading fees. X1, however, has a different focus. Their innovative X1 Card uses current and future income, instead of traditional credit scores, to set intelligent credit limits. The technology also enables cardholders to cancel subscription payments with a single click, terminate free trials automatically with auto-expiring virtual credit cards, get instant refund notifications, attach receipts to purchases, and generate virtual cards for one-off purchases.
The acquisition will see the X1 team joining Robinhood, with co-founders Deepak Rao and Siddharth Batra supervising the new business division. Rao will assume the role of GM of credit cards. This new acquisition complements Robinhood’s existing product suite, which includes a debit card.
Robinhood CEO Vlad Tenev said, “This acquisition will bring us closer towards our goal of serving the entirety of our customers’ critical financial needs. Together with X1, Robinhood will now be able to offer our customers access to credit.”
Keep up with all the latest FinTech news here
Copyright © 2023 FinTech Global