In yet another effort to provide all the tools necessary for Americans to liquidate any and all of their income into the stock market, Robinhood (NASDAQ: HOOD) is currently working on a new feature allowing users to have their paychecks directly deposited into their Robinhood accounts up to two days in advance.
According to Bloomberg, a software developer discovered the new feature in a beta version of a new update on Robinhood’s iPhone app. The new option, which is called Early Direct Deposit, will be part of the app’s existing direct-deposit feature, but will allow the user to have their paycheck deposited from their employer into their Robinhood account up to two days early. “Now you can get paid up to two days early,” the message in the beta version read. “Because eligibility depends on your employer, we’ll let you know if you can get paid early on your next pay cycle.”
Robinhood’s latest feature is similar to that being offered by rival PayPal Wealthfront, and Chime, as well as other traditional banks. The discount brokerage previously unveiled a cash management service back in 2019, allowing its customers to transfer funds into an interest-bearing account. If the new feature does become fully functioning, it will help accelerate Robinhood’s broader plans to make its app a place for all financial needs.
“We want to be the single place that our customers go to for all things money,” said Robinhood’s CFO Jason Warnick during the company’s second quarter earnings call. The latest feature joins a list of other recently-unveiled functionalities, such as a feature that will allow retail traders to invest their “spare change” into stocks.
Information for this briefing was found via Robinhood and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.