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Business Wire
3 days ago
- Business
- Business Wire
Chime Reports Second Quarter 2025 Financial Results
SAN FRANCISCO--(BUSINESS WIRE)--Chime® (Nasdaq: CHYM), a leading consumer financial technology company, today reported financial results for the quarter ended June 30, 2025. 'This was a breakout first quarter as a public company for Chime, driven by accelerating year-over-year growth, expanding margins, and continued product execution,' said Chris Britt, CEO and Co-founder of Chime. 'These results highlight the strength of our payments-based model, fueled by highly recurring revenue and deep member engagement. Our strong performance has led to higher expectations for the third quarter and full year 2025 relative to our previous internal expectations. Looking ahead, I believe we're well-positioned to achieve our vision of becoming the largest provider of primary account relationships in the U.S.' Second Quarter 2025 Financial Highlights We reported robust growth across key metrics in the second quarter, building on our seasonally strong first quarter, when tax refund activity drives higher levels of re-engaged Active Members, Purchase Volume, and revenue. Revenue was $528 million, up 37% year-over-year. Payments revenue grew 19% year-over-year to $366 million. Platform-related revenue grew 113% year-over-year to $162 million. Gross profit was $461 million, yielding an 87% gross margin. Transaction profit (non-GAAP) was $363 million, yielding a 69% transaction margin. Net loss was $923 million and net margin was (175)%. The increase in net loss was primarily driven by $928 million of stock-based compensation expense and related payroll tax that was significantly elevated in the period due to our initial public offering. Adjusted EBITDA (non-GAAP) was $16 million. Adjusted EBITDA margin of 3% represented an 18 percentage point improvement over the last two years. Active Members grew 23% year-over-year to 8.7 million. Average Revenue per Active Member (ARPAM) grew 12% year-over-year to $245. Purchase Volume grew 18% year-over-year to $32.4 billion. Second Quarter 2025 Business Highlights Continued MyPay success: MyPay transaction margin, which represents MyPay revenue less transaction losses, tripled quarter-over-quarter. This improvement was fueled by strong usage rates, and it represents faster-than-planned progress toward our target of 1% steady state loss rates for MyPay. Accelerated product innovation: We expanded our product suite with our continued rollout of Instant Loans and Chime+, increasing member engagement and retention. AI improving member experience, reducing cost: We launched our GenAI voicebot, which more than doubled satisfaction scores compared to our legacy voice system. Today, AI at Chime handles the work of thousands of member support agents, enabling us to scale with speed and reduce costs, while elevating service quality. Successful ChimeCore rollout: We reached another key milestone by migrating all new debit and savings accounts to ChimeCore, our proprietary payment processor and ledger. We expect to finalize our migration over the next few quarters and operate entirely on our own processing and technology platform, improving product velocity and cost savings. Outlook Our outlook for revenue, adjusted EBITDA, and adjusted EBITDA margin for third quarter and full year 2025 exceeds our previous internal expectations. For the third quarter of 2025, we expect: Revenue between $525 million and $535 million, resulting in year-over-year revenue growth between 24% and 27%. Adjusted EBITDA between $12 million and $17 million, with an adjusted EBITDA margin between 2% and 3%. For the full year of 2025, we expect: Revenue between $2.135 billion and $2.155 billion, resulting in year-over-year revenue growth between 28% and 29%. Adjusted EBITDA between $84 million and $94 million, with an adjusted EBITDA margin of 4%. We also expect incremental adjusted EBITDA margin (non-GAAP) to return to mid-40% or higher by the fourth quarter of 2025. The outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. See cautionary note regarding 'Forward-Looking Statements' in this press release. Conference Call Information Chime will host a conference call to discuss its second quarter 2025 financial results and outlook at 3:00 p.m. Pacific Time / 6:00 p.m. Eastern Time today. A live webcast of the earnings conference call will be accessible on Chime's Investor Relations website at m. A replay will be available on the website following the call. An investor presentation, including supplemental financial information and reconciliation of certain non-GAAP financial measures to their nearest comparable GAAP measures, will be available through Chime's Investor Relations website. About Chime Chime (Nasdaq: CHYM) is a financial technology company founded on the premise that core banking services should be helpful, easy, and free. We offer a broad range of low-cost banking and payments products that address the most critical financial needs of everyday people. Our member-aligned business model has helped millions of people to unlock their financial progress. Member deposits are FDIC-insured through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, up to applicable limits. In addition to SEC filings, press releases, and public conference calls and webcasts, Chime uses its investor relations page at and its X (formerly Twitter) channel (@ChimeNewsroom) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or future financial or operating performance. In some cases, you can identify forward-looking statements by terminology such as 'may,' 'will,' 'should,' 'expect,' 'plan,' 'anticipate,' 'could,' 'would,' 'intend,' 'target,' 'project,' 'contemplate,' 'believe,' 'estimate,' 'predict,' 'potential,' 'goal,' 'objective,' 'seek,' or 'continue' or the negative of these terms or other comparable terminology that concern Chime's expectations, strategy, plans, or intentions. Forward-looking statements in this release may relate to, but are not limited to, expectations of future results of operations or financial performance of Chime, expectations regarding certain of our key financial and operating metrics, including our ability to attract and retain Active Members and develop primary account relationships, our business and growth strategy, including future product development plans, our market opportunity, the performance of newly launched products and innovations, our technological capabilities, including the ability of AI to drive cost efficiencies and improvements in member satisfaction, as well as our full transition to ChimeCore, the demand for Chime's products and services, our expectations and management of future growth, and our expectations regarding our industry and traditional banks, as well as assumptions relating to the foregoing. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made or on management's good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. These risks and uncertainties include risks related to our ability to attract and retain Active Members; our relationships with our bank partners; changes in rules and practices concerning interchange fees, card network fees, and other fees and assessments; our ability to maintain and protect our brand; our ability to maintain member satisfaction and provide reliable member support; our ability to develop new products and enhancements for existing products; our reliance on third parties and their systems; our history of net losses and ability to achieve and maintain profitability; and the complex and evolving laws and regulations applicable to our business and the banking ecosystem. Further information on these risks and other factors that could affect our financial results are set forth in our filings with the Securities and Exchange Commission, including in our prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 12, 2025. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. Except as required by law, Chime does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise. Non-GAAP Financial Measures To supplement our consolidated financial information prepared and presented in accordance with U.S. generally accepted accounting principles ('GAAP'), we use certain financial measures that are not prepared in accordance with GAAP, including transaction profit, transaction margin, adjusted EBITDA, and adjusted EBITDA margin, to facilitate analysis of our financial trends and for internal planning and forecasting purposes. We use these non-GAAP financial measures in conjunction with GAAP measures to evaluate our operating performance, formulate business plans, prepare budgets and forecasts, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. We believe that these non-GAAP financial measures provide useful information to investors, analysts, and others about our business and financial performance, enhance their overall understanding of our performance, and can assist in providing a more consistent and comparable overview of our financial performance across periods. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected on our consolidated statements of operations. Accordingly, our non-GAAP financial measures are presented for supplemental purposes only and should be considered in addition to, and not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measures is included at the end of this release. We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP measures included in this release, or a GAAP reconciliation, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of these forward-looking non-GAAP metrics to their corresponding forward-looking GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. Adjusted EBITDA We define adjusted EBITDA as net income (loss), adjusted for (i) depreciation and amortization expense, (ii) other income (expense), net, (iii) provision (benefit) for income taxes, (iv) stock-based compensation expense including related payroll tax, and (v) certain expenses that do not reflect our core operations and may vary significantly from period to period, including restructuring charges, impairment charges, stock-based charitable expense, and certain legal and regulatory charges, as applicable. Adjusted EBITDA Margin We define adjusted EBITDA margin as adjusted EBITDA divided by revenue. We believe that adjusted EBITDA and adjusted EBITDA margin are key measures of our operating performance, and management uses these measures to formulate business plans, prepare budgets and forecasts, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Transaction Profit We define transaction profit as gross profit less transaction and risk losses. Transaction Margin We define transaction margin as transaction profit divided by revenue. We believe that transaction profit and transaction margin are key measures of the incremental profit generated by member transactions. Key Metrics We use the following key metrics to help us evaluate our business and growth trends, establish budgets, evaluate the effectiveness of our investments, and assess operational efficiencies. Active Members We define an Active Member as a member who has initiated a money movement transaction on our platform in the last calendar month of the applicable period. Member-initiated money movement transactions include, but are not limited to, purchases with Chime-branded debit or credit cards, funding a member account, withdrawing funds from an ATM, sending or receiving funds with Pay Anyone, or taking a MyPay advance. Active Members are a key indicator of the scale of our engaged member base. Average Revenue Per Active Member ('ARPAM') We define Average Revenue per Active Member ('ARPAM') as revenue generated in the calendar quarter multiplied by four and divided by the average of the number of Active Members at the end of the prior quarter and the end of the current quarter. ARPAM is a key indicator of our ability to monetize member engagement, as it captures both the impact of payments revenue from Purchase Volume as well as the monetization of products that contribute to platform-related revenue. Purchase Volume We define Purchase Volume as the total dollar value of member purchase transactions using Chime-branded debit or credit cards during a given period, net of any adjustments or refunds. Purchase Volume is a key driver of payments revenue, because the interchange fees upon which our payments revenue is based are generally determined as a percentage of the underlying transaction value plus a fixed amount per transaction based upon rates set by the card networks. Purchase Volume is also a key indicator of aggregate member engagement. Purchase Volume does not include other types of transaction volumes such as deposits, ATM withdrawals, SpotMe and MyPay advances, sending or receiving funds with Pay Anyone, and ACH or direct debit transfers. June 30, 2025 2024 Assets Current assets: Cash and cash equivalents $ 868,284 $ 337,697 Restricted cash 13,515 12,303 Marketable securities 225,063 368,889 Product collateral 212,983 181,723 Accounts receivable, net 229,594 216,161 Loans held for investment, net 114,120 99,799 Prepaid expenses and other current assets 72,520 70,464 Total current assets 1,736,079 1,287,036 Property, equipment and software, net 89,101 92,700 Operating lease right of use assets, net 45,575 49,332 Other assets 31,719 31,969 Total assets $ 1,902,474 $ 1,461,037 Liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit) Current liabilities: Accounts payable $ 51,800 $ 35,846 Accrued and other current liabilities 168,919 224,594 Product obligation 138,979 114,377 Total current liabilities 359,698 374,817 Operating lease liabilities, net of current portion 74,765 80,590 Other non-current liabilities 39,913 46,109 Total liabilities 474,376 501,516 Redeemable convertible preferred stock, $0.0001 par value: No shares authorized, issued, and outstanding as of June 30, 2025. 258,613,394 shares authorized and 258,464,156 shares issued and outstanding with a liquidation preference of $2,894,515 as of December 31, 2024. — 2,890,121 Stockholders' equity (deficit): Preferred stock, $0.0001 par value: 100,000,000 shares authorized, no shares issued and outstanding as of June 30, 2025. No shares authorized, issued, and outstanding as of December 31, 2024. — — Common stock, $0.0001 par value: No shares authorized, issued, and outstanding as of June 30, 2025. 416,094,141 shares authorized, 66,950,736 shares issued and outstanding as of December 31, 2024. — 2 Class A common stock, $0.0001 par value: 5,000,000,000 shares authorized, 338,594,524 shares issued and outstanding as of June 30, 2025. No shares authorized, issued and outstanding as of December 31, 2024. 28 — Class B common stock, $0.0001 par value: 65,000,000 shares authorized, 32,182,289 shares issued and outstanding as of June 30, 2025. No shares authorized, issued and outstanding as of December 31, 2024. 3 — Class C common stock, $0.0001 par value: 500,000,000 shares authorized, no shares issued and outstanding as of June 30, 2025. No shares authorized, issued and outstanding as of December 31, 2024 — — Additional paid-in capital 4,702,788 433,363 Accumulated other comprehensive income (loss) (116) 203 Accumulated deficit (3,274,605) (2,364,168) Total stockholders' equity (deficit) 1,428,098 (1,930,600) Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit) $ 1,902,474 $ 1,461,037 Expand CHIME FINANCIAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Revenue $ 528,149 $ 384,214 $ 1,046,893 $ 776,186 Cost of revenue (1) 67,120 50,504 127,538 97,951 Gross profit 461,029 333,710 919,355 678,235 Operating expenses: Transaction and risk losses 98,247 35,000 207,392 71,038 Member support and operations (2) 203,097 69,821 281,706 137,889 Sales and marketing (2) 185,006 118,021 317,579 235,068 Technology and development (2) 621,754 75,371 699,636 150,301 General and administrative (2) 279,667 41,638 326,840 80,890 Depreciation and amortization (1) 3,896 3,300 7,703 7,458 Total operating expenses 1,391,667 343,151 1,840,856 682,644 Income (loss) from operations (930,638) (9,441) (921,501) (4,409) Other income, net 6,215 9,904 11,569 20,413 Income (loss) before income taxes (924,423) 463 (909,932) 16,004 Provision (benefit) for income taxes (1,047) 78 505 (284) Net income (loss) $ (923,376) $ 385 $ (910,437) $ 16,288 Undistributed earnings attributable to preferred stockholders — (385) — (16,288) Net income (loss) attributable to common stockholders $ (923,376) $ — $ (910,437) $ — Net income (loss) per share attributable to common stockholders, basic and diluted $ (7.29) $ — $ (9.44) $ — Weighted average number of shares outstanding used to compute net income (loss) per share attributable to common stockholders, basic and diluted 126,620,499 64,677,568 96,412,477 64,558,990 ____________________________ (1) Total depreciation and amortization includes amounts as follows: Expand Three Months Ended Six Months Ended June 30, June 30, Depreciation and amortization recorded in cost of revenue $ 3,515 $ 2,817 $ 6,966 $ 3,893 Depreciation and amortization recorded as operating expense 3,896 3,300 7,703 7,458 Total depreciation and amortization $ 7,411 $ 6,117 $ 14,669 $ 11,351 ____________________________ (2) Amounts include stock-based compensation as follows: Expand Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2025 2024 2025 2024 Member support and operations $ 119,517 $ 1,010 $ 120,641 $ 2,073 Sales and marketing 42,406 275 42,889 500 Technology and development 530,249 2,689 533,952 4,256 General and administrative 217,975 2,445 221,361 4,765 Total stock-based compensation expense $ 910,147 $ 6,419 $ 918,843 $ 11,594 Expand CHIME FINANCIAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Six Months Ended June 30, 2025 2024 Operating activities: Net income (loss) $ (910,437) $ 16,288 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 14,669 11,351 Non-cash lease expense 3,058 2,615 Stock-based compensation 918,843 11,594 Stock-based charitable contribution 11,168 — Provision for transaction dispute losses 31,045 24,125 Change in fair value of product obligation 43,579 31,015 Provision for credit losses 44,096 1,868 Impairment related to real estate assets and internal-use software — 211 Amortization of premium on marketable securities (2,365) (7,884) Other 208 73 Changes in operating assets and liabilities: Product collateral (31,260) (24,980) Accounts receivable, net (14,342) 8,026 Prepaid expenses and other assets (1,432) (1,170) Accounts payable 15,954 836 Accrued and other liabilities (93,291) 30,510 Operating lease liabilities (7,773) (5,306) Settlements of the product obligation (18,977) (28,335) Cash flows provided by operating activities 2,743 70,837 Investing activities: Purchase of marketable securities (234,050) (289,452) Proceeds from sales of marketable securities 256,514 16,985 Proceeds from maturities of marketable securities 123,200 306,875 Purchases of loans held for investment (2,368,152) (54,732) Repayments of loans held for investment 2,311,634 30,618 Purchase of property, equipment and software (3,631) (134) Capitalization of internal-use software (6,389) (4,298) Acquisition of business, net of cash acquired — (11,036) Cash flows provided by (used in) investing activities 79,126 (5,174) Financing activities: Payment of debt issuance costs related to the credit facility (1,134) — Proceeds from the issuance of common stock upon initial public offering, net of underwriting discounts and offering costs paid 772,556 — Taxes paid related to net share settlement of restricted stock units (322,619) — Proceeds from exercise of stock options 1,127 600 Repurchases of common stock — (593) Cash flows provided by financing activities 449,930 7 Net increase in cash and cash equivalents and restricted cash 531,799 65,670 Cash, cash equivalents, and restricted cash, beginning of period 350,000 239,745 Cash, cash equivalents, and restricted cash, end of period $ 881,799 $ 305,415 Cash and cash equivalents, end of the period $ 868,284 $ 295,415 Restricted cash, end of the period 13,515 10,000 Cash, cash equivalents, and restricted cash, end of the period $ 881,799 $ 305,415 Expand CHIME FINANCIAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Supplementary cash flow disclosure: Cash paid for interest $ 140 $ 233 Cash paid for income taxes $ 1,071 $ 161 Supplemental disclosures of noncash investing and financing activities: Deferred offering costs not yet paid $ 1,968 $ — Reclassification of deferred offering costs to additional paid-in capital upon initial public offering $ 17,299 $ — Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering $ 2,890,121 $ — Purchases of property, equipment and software in accounts payable $ 294 $ — Cash consideration, accrued but not yet paid, related to acquisition of business $ — $ 2,300 Expand Three Months Ended Six Months Ended June 30, June 30, (in thousands, except percentages) 2025 2024 2025 2024 Net income (loss) $ (923,376) $ 385 $ (910,437) $ 16,288 Net margin (175) % — % (87) % 2 % Adjusted for: Depreciation and amortization expense 7,411 6,117 14,669 11,351 Other (income) expense, net (1) (6,215) (9,904) (11,569) (20,413) Provision (benefit) for income taxes (1,047) 78 505 (284) Stock-based compensation expense and related payroll tax 928,062 6,419 936,758 11,594 Stock-based charitable contribution expense 11,168 — 11,168 — Adjusted EBITDA $ 16,003 $ 3,095 $ 41,094 $ 18,536 Adjusted EBITDA margin 3 % 1 % 4 % 2 % ____________________________ (1) Relates primarily to interest income, which consists of interest and dividends earned on our cash and cash equivalents and marketable securities. 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Yahoo
24-03-2025
- Business
- Yahoo
Fintech firm Chime launches Instant Loans
Chime, a consumer financial technology company, has introduced Instant Loans to provide pre-approved members with immediate funding access of up to $500. This new offering offers a fixed interest rate and are available to Chime members who receive direct deposits into their Chime Checking Account. Eligible members are notified within the Chime app and get instant access to funds. The firm does not seek credit check for Instant Loans, but utilises its proprietary platform and data sources to assess eligibility. Repayments are structured over three months, with no late fees or compound interest. The cost is set at $5 for every $100 borrowed, equating to a 29.76% annual percentage rate. Payments are designed to be affordable, with automated options ensuring they do not surpass 10% of a member's monthly cash inflow. Chime reports on-time repayments to credit bureaus, allowing members to build credit. According to a prior simulation with Experian, participants who consistently make payments on time could see their credit scores rise by 10 to 30 points. The launch of Instant Loans follows other financial products introduced by Chime, including MyPay, which allows members to access up to $500 of their earnings before payday without interest or a credit check. Additionally, Chime's SpotMe feature enables fee-free overdrafts, covering over $30bn in transactions in 2024. Chime chief product officer Madhu Muthukumar said: 'We are relentlessly focused on helping everyday people achieve financial progress. 'Our members have told us that they want simple and transparent tools to access money when they need it, and to help them build credit — and we're excited Instant Loans provides both to our members.' In December 2024, a Bloomberg report said that Chime Financial confidentially filed for an initial public offering (IPO), appointing Morgan Stanley to lead the process. "Fintech firm Chime launches Instant Loans" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Associated Press
21-03-2025
- Business
- Associated Press
Chime Introduces Instant Loans
Leading consumer financial technology company Chime® announced today the launch of Instant Loans—a product that provides instant access to up to $500 in funds with a fixed interest rate that is lower than what's typically observed in the industry. Like all of Chime's services, Instant Loans is easy to use and transparent, and unlike some other loan products, there is no credit check to qualify. Instead, Chime leverages its proprietary technology platform and rich data sources to help determine eligibility. On-time payments can also help members build credit over time. Instant Loans offers three-month installment loans up to $500 to pre-approved Chime members who receive direct deposits to their Chime Checking Account. Members are pre-approved for a loan and notified of their eligibility within the Chime app. Once accepted, eligible members gain instant access to the loan funds. When compared to other types of liquidity products on the market, Instant Loans enables consumers to borrow at potentially half the cost, and with the added flexibility of having up to three times longer to repay. 1 Chime's Instant Loans has no late fees or compound interest, just a fixed interest rate of $5 per month for every $100 borrowed, paid back in three monthly payments of $35.00 per $100 borrowed (29.76% annual percentage rate). For greater ease, repayments can be automated and are designed to not exceed 10% of monthly member cash inflows to ensure affordability. Chime also reports on-time payment history to credit reporting agencies, allowing members to build credit. Participants who pay on time may see their credit score increase by 10-30 points, validated by a prior simulation conducted with Experian 2. 'We are relentlessly focused on helping everyday people achieve financial progress,' said Madhu Muthukumar, Chime's Chief Product Officer. 'Our members have told us that they want simple and transparent tools to access money when they need it, and to help them build credit — and we're excited Instant Loans provides both to our members.' Instant Loans is Chime's latest innovation, building on its commitment to enabling financial progress through products centered around consumer needs. In 2024, Chime announced the launch of MyPay, which lets eligible members access up to $500 3 of their pay before payday with no interest 4 and no credit check. Since its official launch in July 2024, MyPay has helped members access billions of dollars. SpotMe 5, which allows Chime members to overdraw their account without fees, also surpassed a major milestone in 2024, covering more than $30 billion in transactions. The Chime Checking Account was one of the first full-featured accounts to disrupt the traditional banking industry by offering fee-free overdrafts with the launch of SpotMe. Similarly, millions of people have increased their credit scores since opening a Chime Credit Builder Visa® Credit Card, which doesn't charge interest or require a credit check or minimum security deposit. About Chime Chime is a financial technology company founded on the premise that basic banking services should be helpful, easy, and free. Chime builds products that allow the company to succeed when its members do. That's why Chime doesn't rely on punitive fees such as overdraft, monthly service, or minimum balance fees. Member deposits are FDIC-insured through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, up to applicable limits. 6 For additional information, please visit Instant Loans are made by The Bancorp Bank, N.A. The secured Chime Credit Builder Visa Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. 1 Comparable offerings include product offerings by Varo Advance (APR approximately 95%, payback in 1 month), Cash App Borrow (APR range of 60-70%, payback in 1 month) and Possible Finance (APR range of 50-240%, payback in 2 months). 2 Experian simulation indicated members with a positive payment history would realize a positive impact in their Vantage Score 3, with larger increases in deep subprime and thin file members. 3 MyPay is a line of credit. To be eligible for MyPay, you must receive qualifying direct deposits to your Chime Checking Account as set forth in the MyPay Agreement. A qualifying direct deposit is a deposit from an employer, payroll provider, gig economy payer, government benefits payer, or other permitted source of income by Automated Clearing House ('ACH') or Original Credit Transaction ('OCT'). Your MyPay Credit Limit and Available Advance Amount may change at any time. MyPay is a line of credit and available limits are based on estimated income and risk-based criteria. Eligible members may be offered a $20 - $500 Credit Limit per pay period. Your Credit Limit and Maximum Available Advance will be displayed to you within the Chime app. MyPay is currently only available to eligible Chime members in certain states. Other restrictions may apply. See Bancorp MyPay Agreement or Stride MyPay Agreement for details. 4 Option to get funds instantly for $2 per advance or get funds for free within 24 hours. See MyPay Agreement for details. 5 SpotMe® for/on Credit Builder is an optional, no interest/no fee overdraft line of credit tied to the Secured Deposit Account; SpotMe on Debit is an optional, no fee service attached to your Chime Checking Account (individually or collectively, 'SpotMe'). Eligibility for SpotMe requires $200 or more in qualifying direct deposits to your Chime Checking Account each month. Qualifying members will be allowed to overdraw their Chime Checking Account and/or their Secured Deposit Account up to $20 in total, but may be later eligible for a higher combined limit of up to $200 or more based on member's Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your SpotMe Limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your SpotMe Limit. SpotMe for Credit Builder and SpotMe on Debit share a single SpotMe limit. Your SpotMe Limit may change at any time, at Chime or its banking partners' discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions or OTC cash withdrawal fees at retailers. SpotMe won't cover non card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe Terms and Conditions. 6 Chime is not FDIC-insured. The Bancorp Bank, N.A. and Stride Bank, N.A. are the FDIC-insured members. Deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. SOURCE: Chime Copyright Business Wire 2025. PUB: 03/21/2025 09:00 AM/DISC: 03/21/2025 09:00 AM
