Niket Nishant

(Reuters) – Robinhood Markets Inc (NASDAQ 🙂 has launched a new debit-card that allows you to invest spare change. This is part of its expansion beyond trading, and will allow it to be more competitive with other fintech companies like PayPal (NASDAQ :).

Robinhood stated that users can now round up their money to the nearest dollar to invest in the assets they choose with the cash card.

It said that the company, which is known for pioneering commission-free trading and would reward those who use this feature with a weekly bonus. Robinhood Money, an online brokerage’s new subsidiary, is offering the card.

Acorns Grow Inc and Chime, two other consumer finance apps allow you to invest spare change. This feature is especially appealing for younger customers.

Robinhood Chief Product Officer Aparna Chhennapragada stated that “the younger generation is debit-primary so that’s where our primary focus is.” She also said that Robinhood was trying to capitalize on consumers shifting towards digital and debit cards.

Robinhood explained that the cash card allows customers to have separate accounts for investment and spending. This cash card will be replacing the existing cash management product of Robinhood, which allowed customers to invest and spend cash in separate brokerage accounts.

Customers will be able to get their paychecks via direct deposit up to 2 days before they are due, which is also offered by the digital payment giant PayPal Holdings Ltd.

Robinhood also stated that users could choose to have a percentage of their pay automatically invested. These new services will be offered at no cost to users, Robinhood stated.