Member Exclusive, Payments

Payments Briefing: Consumers are increasingly turning to flexible payments to counter inflation

  • This week, we look at how American consumers plan to use more flexible payments to be able to afford gifts for themselves and others this holiday season.
  • We also discuss how businesses around the world are increasingly making digital payments, but are also facing growing instances of fraud.
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Payments Briefing: Consumers are increasingly turning to flexible payments to counter inflation

For much of this year, American consumers have been feeling the pinch of rising interest rates and the climbing cost of goods. People living paycheck to paycheck, or with nonprime or subprime credit, are especially vulnerable to the effects of inflation. For many of these consumers, the ability to split payments and pay over time allows them to get the items that they need but may not be able to otherwise afford.

New research from lease-to-own payments provider Katapult finds that more than three-quarters (78%) of consumers with nonprime credit scores or lower say they would use a flexible payment option – such as BNPL or LTO – to purchase gifts for themselves and others this holiday season, if offered by the online or physical stores where they shop.

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Robinhood is an online stock brokerage that offers its customers commission free trading and investing. Robinhood users can invest and trade in stocks, exchange traded funds, options, and cryptocurrency. Customers can invest in over 5,000 stocks with Robinhood, including most U.S. equities and ETFs listed on U.S. exchanges.

Robinhood Financial, LLC and Robinhood Crypto, LLC are wholly-owned subsidiaries of Robinhood Markets, Inc. All cryptocurrency holdings are held in Robinhood Crypto as opposed to Robinhood Financial.

The company was founded in 2013 by Stanford roommates Baiju Bhatt and Vladimir Tenev. It has its headquarters in Menlo Park California and offices in the U.S and the UK.

Account Types

Robinhood’s products are accessible through its three different accounts: Robinhood Instant, Robinhood Gold and Robinhood Cash.

Robinhood Instant

Robinhood Instant is the default Robinhood account which is a margin account that has access to extended hours trading and instant deposits. Robinhood Instant account users do not have to wait for funds to process while selling stocks or depositing up to $1000.

Robinhood Gold

Robinhood Gold comprises a range of investing tools and premium products such as greater instant deposits starting at $5000 to a max of $50k, research from Morningstar on 1700 stocks, Level II Market Data from Nasdaq and more access to trading on margin. It has greater buying power and larger instant deposits as compared to the Robinhood Instant account.


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