Interactive Brokers Group Inc. plans to bring its newly released debit card to Europe and Canada in the next six months and to expand to Asia after that, Chairman and CEO Thomas Peterffy said.
The debit card was announced in August along with a financial management account that allows customers to borrow against their brokerage accounts. The card is available only to U.S. customers at this time and provides a streamlined system to centralize customers' brokerage and debit accounts.
The brokerage firm is looking to expand its debit card after recently exiting its stake in the options market-making business, a business plagued by low volatility and customer activity. Peterffy thinks the card will be able to bring in additional customers down the road.
"The uptake so far has been favorable, but we're very early into the process," he said on a third-quarter earnings call. "It's also very convenient to not have to worry about overdrawing your account when they use our card for purchases when they basically run out of cash."
The card carries an annual percentage rate of 1.41% to 2.66%, which Peterffy said is why the card is "so incredibly attractive to people who spend more than the cash they have."