Robinhood adjusts $695 platinum card after complaints over perks

Robinhood is revising its platinum card after some customers objected to the structure of its rewards, according to a Wednesday report by the Wall Street Journal. The card carries a $695 annual fee, and the reported changes include raising the annual travel credit to $1,000 from $800 while easing limits on selected lifestyle credits.

The changes matter for Robinhood’s push into higher-income financial services customers, a segment also being pursued by large card issuers with premium products. For cardholders, the value of a premium card depends less on the headline amount of benefits than on whether credits can be used without narrow timing rules, spending thresholds or redemption limits.

Deepak Rao, vice president and general manager of Robinhood Money, told the WSJ that the company had seen the customer response. He said Robinhood wanted to address concerns that the card resembled a “coupon book,” where benefits required minimum spending to unlock.

Robinhood has started sending sign-up offers to its highest-spending Gold cardholders, the WSJ reported. More invitations are expected in coming months, and Rao told the newspaper that more than 50,000 people requested the card during the week after its first announcement.

Perks shift toward easier redemption

According to the WSJ, Robinhood will retain most of the benefits it had already announced for the platinum card. The most visible change is the travel credit, which is being increased by $200 to $1,000 a year.

The company also removed limits tied to DoorDash and fitness wearable credits, the WSJ reported. The DoorDash benefit had drawn particular criticism from cardholders, according to the report.

Under the earlier structure, the DoorDash credit totaled $250 a year, but customers could use it only in $10 increments and only on orders of at least $50, according to the WSJ. The revised version lowers the annual DoorDash credit to $120, but allows cardholders to use $10 each month without the earlier spending condition, the report said.

Credit-card perks often work by offsetting part of the annual fee through statement credits, discounts or partner benefits. Their practical value depends on usage: a larger credit can be less valuable if it is difficult to redeem, while a smaller benefit may be more useful if it applies automatically or with fewer restrictions.

Premium card competition intensifies

The WSJ described the rollout as part of Robinhood’s effort to broaden beyond trading and become a wider financial services provider, particularly for customers willing to pay for premium products. The report noted that American Express and Chase have also raised fees on premium cards as issuers compete for affluent consumers.

Separate PYMNTS Intelligence research cited by PYMNTS found that traditional reward programs face a “relevance problem” among credit card issuers. According to that research, less than half of surveyed issuers said their current incentives support loyalty or retention.

The same research found that 47% of issuers said rewards prompt cardholders to switch to their cards, while 40% said rewards affect the timing of spending. PYMNTS said smart basket technology could address those gaps by applying eligible savings at checkout, rather than requiring consumers to activate offers in advance or wait for credits after a purchase.

For Robinhood, the reported card changes indicate a shift from headline perk totals toward benefits that customers may find easier to use. The company’s ability to convert interest from Gold cardholders into paid card adoption will depend in part on whether the revised rewards structure is viewed as sufficient compensation for the $695 annual cost.

This story draws on original reporting from PYMNTS.