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The acquisition of X1 gets Robinhood into the credit card business with the interchange fee revenue that comes with it. Robinhood currently earns interchange fees from its debit card, but has seen declines in its core trading business overall recently (in addition to crypto trading), most likely prompting that desire to diversify its business.
On the other hand, Robinhood noted in its announcement that this move is “an important step in our journey toward broadening our product offerings and deepening our relationship with existing customers.” Not only has crypto trading slowed down, but its core trading business overall saw declines in May, most likely prompting that desire to diversify its business.
https://techcrunch.com/2023/06/22/robinhood-acquires-credit-card-startup-x1-for-95m/
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