- Robinhood has experienced a decline in monthly active users.
- Revenue from its crypto trading business has also fallen following the recent drop in cryptocurrency prices.
- The acquisition of X1 will help Robinhood diversify and expand its product lineup to attract a broader market.
The well-known cryptocurrency and stock trading app Robinhood is expanding its product offerings by acquiring credit card startup X1 in a deal worth $95 million. This acquisition adds a new revenue stream and strengthens Robinhood’s relationship with its existing customer base.
By integrating X1’s income-based credit card and features such as rewards programs, trial cards, and single-use virtual cards, Robinhood aims to enhance its financial services ecosystem and deliver more value and flexibility to users.
Robinhood’s progress diversifying its business
Robinhood has been steadily diversifying beyond its core trading platform, and the purchase of fintech credit card provider X1 represents a notable step in that strategy. The company has previously acquired several firms—such as MarketSnacks, Cove Markets, Binc, Say, and Ziglu—with the goal of building a more comprehensive suite of financial products.
Entering the credit card market is intended to boost revenue and deepen engagement with Robinhood’s sizable user base. The move comes amid falling monthly active users and declining revenue from its crypto trading operations. Expanding product offerings and appealing to a wider audience are central to Robinhood’s plan for sustained growth and resilience.
About credit card startup X1
X1 has attracted significant attention within the fintech community. In 2022, the startup reported a waiting list of roughly 500,000 people interested in its credit card, underscoring strong market demand for innovative card products and highlighting X1’s growth potential.
X1’s income-based credit card assesses credit eligibility relative to a user’s income, enabling access to credit for a broader spectrum of customers. The company distinguishes itself with features like rewards, risk-free trial cards, and single-use virtual cards—capabilities designed to increase convenience, security, and overall user satisfaction.
Investors have shown confidence in X1’s vision: the startup raised about $62 million in recent funding rounds from venture firms including Craft Ventures, Soma Capital, and FPV. The fact that investor Wesley Chan is involved with both X1 and Robinhood further underscores complementary interests and a shared focus on innovation within financial services.