Robinhood Wallet and Fomo now let users buy memecoins with a credit card. Chase is already asking questions about the practice.
The two platforms have added credit card support for purchasing these speculative tokens, a move that puts the payment method directly into the crypto market. Chase, one of the largest U.S. banks, has taken notice and is asking questions, according to the companies involved.
The new payment option
Robinhood Wallet, the crypto arm of the trading app, and Fomo, a platform focused on meme-based digital assets, have both enabled credit card purchases. That means users can now swipe or enter their card details to buy memecoins like Dogecoin or Shiba Inu, though the specific tokens available may vary.
Using a credit card for crypto purchases is not new, but it carries unique risks. Credit cards typically come with high interest rates, and memecoins are known for extreme price swings. A purchase made on credit could quickly turn into a debt that outlasts the token's value.
Chase's questions
Chase has not publicly detailed what it is asking about, but the bank's interest signals concern. The practice of using credit cards to buy volatile digital assets has historically been a point of caution for financial institutions. Some card issuers have restricted or blocked such transactions in the past, though Chase has not announced any changes.
The questions from Chase could be about the risks to consumers, the potential for fraud, or the bank's own exposure. Without a public statement, the specifics remain unknown. What is clear is that Chase is paying attention.
What this means for users
For users of Robinhood Wallet and Fomo, the ability to buy memecoins with a credit card adds convenience but also danger. A credit card purchase is essentially a loan, and if the memecoin's price drops, the user still owes the full amount plus interest. That's a double loss.
Chase's questions could lead to restrictions on its cards being used for these purchases. If the bank decides to block the transactions, users with Chase cards would lose that option. Other banks might follow suit, though none have announced anything yet.
The situation is still developing. Chase has not said what it will do next, and neither Robinhood Wallet nor Fomo has commented on the bank's inquiries. The only certainty is that the practice is now under scrutiny.
