Robinhood Brings ‘Cash On Delivery’ For Retail Traders

• Robinhood’s new service allows traders to have physical cash delivered to their homes.
• The feature is powered by Coastal Community Bank and delivery partner Gopuff.
• According to The Wall Street Journal, the service is currently available in New York, with other major U.S. cities to follow.

Robinhood (HOOD) announced on Thursday that it will now offer its traders to have cash delivered to their doorsteps.

In partnership with Coastal Community Bank, a Member FDIC institution, and delivery service Gopuff, Robinhood’s new feature is designed to simplify access to funds for its retail traders.

HOOD’s stock fell more than 7% in midday trade amid broader weakness in the equity market. Retail sentiment on Stocktwits around the exchange dipped to ‘bullish’ from ‘extremely bullish’ over the past day, as chatter dipped to ‘normal’ from ‘extremely high’ levels.

Robinhood Expands Financial Services Beyond Trading

The cash delivery program builds on Robinhood’s plan, first hinted at by CEO Vlad Tenev in March, to broaden the company’s financial services offerings. This included attempting to incorporate more traditional and unconventional banking features in way that still works for their new-age target audience.

While Robinhood itself is not a bank, the collaboration with Coastal Community Bank ensures that the cash withdrawal service is backed by FDIC protections, the company said.

Rolling Out Nationwide

According to a report by The Wall Street Journal, customers can request cash deliveries for a $6.99 fee, or $2.99 if they hold over $100,000 in assets across their Robinhood accounts. Funds are delivered in sealed paper bags directly to the customer’s home, bypassing the need for ATMs or branch visits.

The report added that the service is already live in New York and will expand to San Francisco, Philadelphia, Washington, D.C., and other major U.S. cities in the coming months. Customers must be Robinhood Gold subscribers, paying $5 per month, and maintain at least $1,000 in monthly direct deposits to qualify.

Robinhood reportedly said it worked closely with Gopuff to address security concerns surrounding cash deliveries. Customers will be required to present a verification code and collect the delivery in person. 

Read also: Circle Stock Gains Pre-Market After JPMorgan Turns Bullish, Cathie Wood’s Ark Invest Buys The Dip

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