Social network and investment platform eToro is reportedly developing a debit card that’s set to be launched in 2020.
A recent Business Insider report revealed that eToro’s 12 million users will have the power to use their earnings using a debit card, which is planned for a second quarter release. The multi-asset investment platform’s new service will allegedly be rolled out in the United Kingdom first.
News Leaked to Press Last Week
News about the proposed debit card was leaked to the press late last week. An anonymous insider emailed several news sites and exposed how the card would look and work. However, the company is keeping other details about the impending debit card and its launch under wraps.
The card’s release date was confirmed by Amy Butler, eToro’s Global Head of PR & Communications, but she declined to provide additional details.
Katie Evans, eToro’s PR Manager, added that while they can’t provide additional information about the card, the UK-based company is known for constantly evolving its product line up so it will meet the demands of its millions of users across more than a hundred countries.
While eToro officials are keeping mum about the details, the emails leaked to the media outlets showed how the company will let clients spend their eToro revenue on recurring payments. The project is also described as the company’s latest endeavor to provide its users with more diverse services.
EToro’s is said to be looking into ways to diversify its revenue, although at the moment, the firm is concentrating on the trading sector.
The move could also be its ways to move away from the already crowded commission-free trading niche. One report stated that eToro became commission-free on ETF trading and stocks back in May. Commission-free trading platforms have been increasing in popularity, with Robinhood and Freetrade enjoying robust business.
Robinhood might even have placed additional pressure on eToro. The upstart firm debuted in England in November and has already been valued at $7.6 billion. It’s also planning on rolling out its own debit card as part of its Cash Management program. The card allows users to spend direct from their brokerage account and even offers them a 2.05% yearly percentage yield. Users essentially earn interest on the money they’re not investing on Robinhood.
Partnership with UFC
Another way eToro is distancing itself from similar platforms is through its collaborations and acquisitions. The company’s acquisition of Delta, a crypto portfolio tracking app, could be a way for it to bolster its product suite. eToro also recently signed a partnership deal with the Ultimate Fighting Championship (UFC).