Something unusual is unfolding in the super-premium credit card market, and American Express Company (NYSE:AXP) is suddenly facing a new challenger from an unexpected corner of finance.

Trading platform Robinhood Markets Inc. (NASDAQ:HOOD) is launching a $695-per-year Platinum card, directly challenging the high-margin credit card segment that has long been dominated by American Express and its flagship Platinum card.

Wall Street took notice quickly. In a note Thursday, Bank of America analyst Mihir Bhatia described the development as "an incremental negative" for Amex.

Why Robinhood Is Entering The Super-Premium Credit Card Market

Announced at Robinhood’s “Take Flight” keynote, the invite-only Platinum Card is plated in 99.9% pure platinum and targets high-income consumers with 10% cash back on hotels and rental cars, 5% back on dining and flights, and unlimited Priority Pass airport lounge access.

Additional perks include an Oura Ring membership, Amazon One Medical, $250 in annual DoorDash credits, $500 in hotel credits, and a complimentary Robinhood Gold subscription.

The card undercuts both the Amex Platinum ($895) and Chase Sapphire Reserve ($795) on annual fee. The company says total rewards could exceed $3,000 per year.

Yet, many of those rewards require users to interact with the Robinhood ecosystem, including its brokerage account and ...