Robinhood has begun the process of acquiring X1 Inc., a fintech company that offers smart credit cards, for $95 million in cash. The acquisition, which is expected to close in the third quarter, would allow the financial services company to offer its customers access to credit.
On top of that, Robinhood said it will be onboarding the X1 team. X1 co-founders Deepak Rao and Siddharth Batra will oversee the new venture, the company said in a statement shared with finance tycoons today (Thursday). Rao will also serve as general manager of credit cards and will report to Vlad Tenev, CEO and co-founder of Robinhood.
“This acquisition will bring us closer to our goal of fully meeting the critical financial needs of our customers,” commented Tenev. “With X1, Robinhood will now be able to offer our customers access to credit.”
The California-based company said it was looking to expand its product offering and strengthen relationships with existing customers. X1’s credit cards have no annual fees, late fees or foreign transaction fees, according to the release.
“When we founded X1, we set out to create a different type of credit card with an unparalleled customer experience, similar to Robinhood’s mission to make our financial markets more accessible to everyone,” Rao said, welcoming the deal. . “We share the same philosophy and by partnering with Robinhood we will be able to offer an enhanced credit card experience.”
Drop in user demand
Robinhood’s acquisition of X1 comes at a time when the broker is seeing a decline in monthly active users (MAUs) due to a slowdown in the equity market and rising interest rates. The company’s MAU fell from 11.5 million to 10.6 million in May. Compared to the same period last year, the figure fell further, down 28% from 14.6 million.
Additionally, Robinhood announced earlier this month that it was removing commonly traded cryptocurrencies native to the Cardano, Solana, and Polygon blockchains. This was after the digital assets were identified as securities by the United States Securities and Exchange Commission (SEC) in its lawsuits against Coinbase and Binance.
Cautious about enhanced enforcement actions from the SEC, particularly against digital asset platforms, Robinhood earlier told Congress that it was reviewing its listed digital assets. The financial services platform is known for offering commission-free stock trading services and more than a dozen cryptocurrencies.
New trade on TradingView; HKEX in New York; read today’s news nuggets.
Robinhood has begun the process of acquiring X1 Inc., a fintech company that offers smart credit cards, for $95 million in cash. The acquisition, which is expected to close in the third quarter, would allow the financial services company to offer its customers access to credit.
On top of that, Robinhood said it will be onboarding the X1 team. X1 co-founders Deepak Rao and Siddharth Batra will oversee the new venture, the company said in a statement shared with finance tycoons today (Thursday). Rao will also serve as general manager of credit cards and will report to Vlad Tenev, CEO and co-founder of Robinhood.
“This acquisition will bring us closer to our goal of fully meeting the critical financial needs of our customers,” commented Tenev. “With X1, Robinhood will now be able to offer our customers access to credit.”
The California-based company said it was looking to expand its product offering and strengthen relationships with existing customers. X1’s credit cards have no annual fees, late fees or foreign transaction fees, according to the statement.
“When we founded X1, we set out to create a different type of credit card with an unparalleled customer experience, similar to Robinhood’s mission to make our financial markets more accessible to everyone,” Rao said, welcoming the deal. . “We share the same philosophy and by partnering with Robinhood we will be able to offer an enhanced credit card experience.”
Drop in user demand
Robinhood’s acquisition of X1 comes at a time when the broker is seeing a decline in monthly active users (MAUs) due to a slowdown in the equity market and rising interest rates. The company’s MAU fell from 11.5 million to 10.6 million in May. Compared to the same period last year, the figure fell further, down 28% from 14.6 million.
Additionally, Robinhood announced earlier this month that it was removing commonly traded cryptocurrencies native to the Cardano, Solana, and Polygon blockchains. This was after the digital assets were identified as securities by the United States Securities and Exchange Commission (SEC) in its lawsuits against Coinbase and Binance.
Cautious about enhanced enforcement actions from the SEC, particularly against digital asset platforms, Robinhood earlier told Congress that it was reviewing its listed digital assets. The financial services platform is known for offering commission-free stock trading services and more than a dozen cryptocurrencies.
New trade on TradingView; HKEX in New York; read today’s news nuggets.
