Robinhood launches new debit card to up its game in fintech sector

• Cash Card will give option to receive paychecks up to two days in advance

• Online brokerage formed new subsidiary Robinhood Money and discontinued existing cash management product

Robinhood Markets Inc (NASDAQ: HOOD) on Tuesday launched a new debit card that would allow users to invest their spare change as the company is looking to expand beyond trading and into more consumer finance verticals.

With the Cash Card, users can round up their spending to the nearest dollar and invest the change in assets of their choice, Robinhood said in a blog post.

The cards will be offered by Robinhood Money, a new subsidiary of the online brokerage.

The company, which pioneered commission-free trading, would also reward users of Robinhood Money with a weekly bonus of 10% to 100%, which is capped at $10.

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Robinhood said that the cash card would let customers keep separate accounts for investing and spending. It will replace the company's existing cash management product, where investing and spending cash were all in their brokerage account.

The Menlo Park, California-based company, will also give customers the option to receive paychecks up to two days in advance via direct deposit.

Users could also choose to invest a portion of their paychecks automatically, Robinhood said.