Chime, founded in 2013, has grown into one of the largest neobanks in the U.S., with 8.6 million Active Members. The San Francisco-based fintech company has redefined digital banking by offering “account fee-free”, mobile-first financial services tailored to millennials and underserved consumers. Operating as a technology provider rather than a traditional bank, Chime partners with FDIC-insured banks, such as The Bancorp Bank and Stride Bank, to deliver banking products like checking and savings accounts, debit cards, and credit-building tools. The Visa branded Chime debit card is accepted at 50,000 ATM locations nationwide on a free transaction basis, including ATMs at major retailers like Walgreens, CVS, 7-Eleven, Circle K and Target. The company’s mission is to make financial services accessible, transparent, and user-friendly, challenging the maintenance and overdraft fee-heavy model of conventional banks.
Chime generates revenue from interchange fees like debit card transactions, interest on savings account balances, and premium services like instant cash advances through its MyPay feature. Unlike traditional banks, Chime does not charge overdraft or maintenance fees, which has resonated with younger and lower-income users. The mobile app provides real-time transaction alerts, budgeting tools, and early direct deposit (up to two days early), supporting the company’s ethos of user control over finances. This customer-centric approach has fueled rapid growth, with Chime adding millions of users annually, particularly during the economic uncertainty of the COVID-19 pandemic, when demand for digital banking surged.
Competitors like SoFi, Varo, and Current have intensified pressure by offering similar fee-free services, while traditional banks have countered with their own digital platforms, such as Chase’s Finn (now discontinued) and Citi’s digital accounts. Chime’s impact on the financial industry is undeniable. It has forced legacy banks to rethink fee structures and invest in digital infrastructure, while empowering millions with accessible banking tools.
In the first quarter of 2025, Chime’s Active Members transacted 40 times per month, on average, of which 70% of purchases were for non-discretionary expenses such as food and groceries, gas, and utilities. This generated a record high quarterly purchase volume of $34.5 billion and an Average Revenue per Active Member (ARPAM) of $251, up 9% Y/Y. Getting down in the weeds, these metrics imply 344 million transactions with an average purchase value of $100 in the quarter. This company has scale.
The company’s top line has been annually growing 25% and last year achieved a significant milestone of $1.67 billion with stronger below the line profitability expected to follow in upcoming periods. Member Support, Sales, Technology and General Administrative are primary cost centers with the most recent quarter demonstrating much improved operating leverage.
On May 13, 2025, Chime filed for an IPO, with an expected pricing in June and some media reports suggesting a potential valuation of $30-40 billion. Chime remains a trailblazer, proving that banking can be simple, affordable, and inclusive.
