Robinhood Seeks To Enter The Payments Market Using Its All New Cash Management Tool
- Robinhood had previously launched a similar banking tool that had to be nipped due to its non-adherence to certain US federal rules and regulations.
- Experts believe that Robinhood’s latest financial offering has the potential to replace traditional banking accounts.
According to an all new article published by Fortune earlier today, Robinhood — one of the world’s most used stock market and crypto trading apps — is looking to relaunch a cash management feature that it had discontinued last December.
For those of our readers who may not remember this episode, Robinhood had launched a ‘fee-free checking-and-savings account’ that offered a 3 percent yield to its users during the latter half of 2018. The point of this entire exercise was to allow casual crypto enthusiasts to deal with Bitcoin in a streamlined manner. However, since the firm did not comply with some of the US’ existing federal laws at the time, the feature had to be abandoned. With that being said, this time around, Robinhood has come with the backing of a legacy investment banking establishment.
Robinhood plans relaunch of high yield cash account https://t.co/SxJagEnOzZ
— FORTUNE (@FortuneMagazine) July 17, 2019
As we all know, the crypto industry has disrupted the traditional banking sector in a big way — primarily by making the domain of payments more transparent and decentralized. Not only that, with the launch of FBs much hyped Libra coin, we may get to see a shift in how the global economic engine works.
Robinhood’s new offering is being advertised as a ‘cash management tool’ that will be embedded within the company’s brokerage accounts.
The new service, in its core essence, has the ability to replace a conventional bank account.
As per Grethchen Howard — the COO of Robinhood — the firm is currently looking to not only expand its brokerage services, but has also applied for a ‘federal bank charter’.
The company’s long term goal is to totally disrupt the banking sector and make payments easier for everyone.