Robinhood Introduces Recurring Payments For Small Investments in Crypto
Aiswarya Gopan • 1 min read
Leading fintech app Robinhood has announced a new feature which will allow its users to make recurring payments towards investing in cryptocurrencies, starting at as low at $1 per month. Customers will be able to undertake recurring purchases on a daily, weekly and even monthly basis, giving them the power to start investing with limited capital as they attempt to get in on the cryptocurrency trend.
COO at Robinhood Crypto Christine Brown feels that this approach will not only allow customers to safeguard against the highly volatile nature of the crypto market but also take a long term interest in investing in digital currencies. The feature is an important addition in encouraging new and hesitant customers to try out crypto investments but fear the frequent market crashes which could cause them to lose significant capital if they invested all their money in one go.
The app will allow customers to use the recurring payments feature with no added fees or commission, a significant advantage over other players that offer similar services but charge up to 4% as transaction fees. some platforms charge higher transaction fees for recurring payments than when customers make one-off investments, but Robinhood’s offering would offer a higher value proposition for its customers if they opt for this structure for investing in cryptocurrencies.
Cryptocurrencies have been one of the key contributors to Robinhood’s stellar performance through 2021, with the majority of its customers using the platform to purchase cryptocurrencies instead of stocks during Q2 of 2021. The company has plans to expand its offerings in this space by expanding the number of cryptocurrencies available on its platform, addition of a standalone crypto wallet as well as add more services to entice more customers to invest in digital assets.