The luxury credit card market just got a new challenger. But does cheaper actually mean better?
Robinhood rolled out its Platinum Card on Wednesday at its 'Take Flight' event, pricing it at $695 (£521) annually. That's $200 less than theAmerican Express Platinum, which recently increased its fee to $895 (£671). Both cards promise thousands in annual value. The real question is which one actually delivers.
On paper, Robinhood wins the cash back battle. The card offers 10% back on hotels and rental cars, 5% on flights and dining. However, it drops to just 1% on everything else, which is a surprising step down from the 3% flat rate offered on Robinhood's standard Gold card.
Meanwhile, Amex Platinum gives 5x points on flights and prepaid hotels, and just 1x on other spending.
But here's where it gets complicated.
Robinhood's top rates only apply when you book through its Banking app. Book directly with an airline or hotel? You drop to 1%. Amex lets you book directly with airlines and still earn 5x points, plus its transfer partnerships with Delta, Marriott, and others can stretch point values further.
'We want to go after the legacy players' customers,' Deepak Rao, VP and General Manager of Robinhood Money, told Reuters. He called Amex 'obviously the benchmark'.
Both cards offer Priority Pass lounge access. Robinhood covers 1,800+ lounges worldwide. Amex matches that and adds its own Centurion Lounges, which are generally less crowded and better stocked.
Travel credits differ significantly in how they actually hit your statement. Robinhood bundles a $300 (£225) flexible travel credit with a $500 (£375) hotel credit, totaling $800 (£600) in potential annual savings.
American Express counters with a $200 (£150) airline fee credit and a $200 (£150) hotel statement credit (plus an estimated $400 (£300) in on-property perks like free breakfast and late checkout).
Source: International Business Times UK
