Robinhood Wallet Lets Users Buy Memecoins with Credit Cards

Robinhood Wallet and Fomo have introduced a new feature that allows users to purchase memecoins using credit cards through Apple Pay and Google Pay. This integration, built on Crossmint's Token Checkout, processes payments on the Robinhood Chain network and classifies transactions under the merchant category code for digital goods media.

This classification means some credit cards may offer points, miles, or cashback on memecoin purchases, a departure from how credit card networks have traditionally handled cryptocurrency transactions. However, Chase has said it is investigating the issue over concerns that the feature may circumvent card issuer rules on cryptocurrency purchases.

The New York Attorney General's office has also stated that it is aware of the matter and is reviewing it. This move comes amid increasing regulatory scrutiny of cryptocurrency products and payment systems, with credit card networks historically imposing stricter rules on crypto purchases.