Challenge American Express Company (AXP.US)! Robinhood (HOOD.US) launches a $695 "true platinum card" to aggressively enter the high-end credit card market.

Robinhood Markets Inc. (HOOD.US) is attempting to challenge American Express Company (AXP.US) with a credit card claiming to be the "real platinum card". The company is actively expanding its business beyond its well-known retail trading platform. This Robinhood credit card has an annual fee of $695 and is made with real platinum material. Its features include 5% cash back on dining expenses, $250 annual DoorDash Inc. (DASH.US) credit, 10% cash back on hotel and rental car expenses, and a $250 annual credit for autonomous travel. The launch of the platinum card comes two years after Robinhood released its fee-free gold card. According to Robinhood Money's GM and VP Deepak Rao, customers have been requesting a higher-end card after reaching the spending limits of the gold card. "Some even tried to use our card to buy a satellite," Rao said in an interview, noting that many Robinhood customers are in the "high spending group". "If we're going to do a platinum card, it needs to be legit." Currently, the credit card industry is facing intense competition with institutions vying for high-net-worth individuals willing to pay high annual fees in exchange for luxury benefits like airport lounge access and premium event tickets. American Express Company recently upgraded its platinum card, raising the annual fee to $895 and updating various classic travel and hotel perks; J.P. Morgan (JPM.US) is also revamping its popular Chase Sapphire Reserve card by 2025. Robinhood has observed that as customers age, their lifestyles are changing. As a result, the company has launched a new "family investing experience" feature that allows other brokerage accounts to be integrated into the Robinhood app at different permission levels, enabling customers to better understand their overall financial situation. For example, married couples can view all brokerage accounts on one platform and set different permissions from viewing only to full trading control. Family users can also set up custodial accounts and trust accounts for minor children, reflecting a shift in Robinhood customers' needs from simple stock trading to comprehensive financial services. As Robinhood introduces custodial accounts, reports suggest that the US federal government is considering involving the company in overseeing the new "Trump accounts". Abhishek Fatehpuria, VP of product management for Robinhood's brokerage business, stated that there is no information available to share regarding the selection process.