The new payment feature will allow Robinhood to compete with other companies like PayPal, Wealthfront, Chime, and traditional banks.
September 2, 2021, | AtoZ Markets – Robinhood is working on a new feature that allows users to receive bank payments for up to two days. Bloomberg writes about this with reference to the beta version of the update for the iPhone.
The new feature will potentially put a fintech broker on a par with companies like PayPal, Wealthfront, Chime and others.
“Since eligibility depends on your employer, we will let you know if you can get paid earlier in the next billing cycle,” the attachment says.
There is no commission for using the new functionality, but the details are still unknown. At the time of this writing, Robinhood has not commented on the introduction of the new feature.
The innovation will complement the money management service that Robinhood launched back in 2019. The site allows users to transfer part of their money to an interest account. Also, users noticed a certain function that “protects against cryptocurrency volatility.” However, how exactly it works remains unclear.
Rumors of new features come after the US Securities and Exchange Commission (SEC) threatened to ban Robinhood’s core business model. Recall that the US stock exchange regulator hinted at a complete ban on payment for the flow of orders. According to the SEC, this practice has an “inherent conflict of interest.”
However, Robinhood disagrees with the regulator’s position. According to the broker, the current business model is a “better solution” for clients compared to the old structure of commission costs.
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