Chime Sees $86 Billion Revenue Opportunity Amid Digital Banking Shift

In 2022, as the pandemic waned, PYMNTS Intelligence found that only about 9% of consumers used digital banks for their primary financial relationships and accounts.

Since then, however, the push toward using apps and mobile devices for everyday financial needs has been less wave than tsunami, and for platforms linking with banks to deliver a range of cards, lending and account offerings, the forging of those primary relationships is gathering momentum.

Chime filed its S-1 registration statement for a proposed initial public offering (IPO) with the Securities and Exchange Commission late Tuesday (May 13). Although some key details of the listing are not included in the filing, such as the number of shares being sold, the document gives insight into the scope of the digital shift for traditional banking products, such as savings accounts and credit cards.

Chime made some distinctions tied to its business model in the statement.

“Chime is a technology company, not a bank,” the filing said.

The company partners with The Bancorp Bank and Stride Bank, Federal Deposit Insurance Corp.-insured community banks, to provide banking services.

Chime estimated that its serviceable addressable market offers up to an $86 billion annual revenue opportunity, calculated by multiplying the average revenues derived from “highly engaged” members of $442 by 196 million individuals earning up to $100,000 annually. That revenue opportunity can grow to an annualized pace of $426 billion by targeting consumers who earn up to $200,000 yearly, the filing said.

The company said in the filing that it has 8.6 million active members — up 23% from 2024 — where 67% of them use Chime as their primary financial provider. Chime is “the platform through which members consistently deposit their paychecks and conduct their everyday spend, creating durable and long-lasting relationships with high engagement.”

Customers used Chime for 54 transactions per month, on average, per the filing, “of which 75% were purchase transactions using Chime-branded debit and credit cards.” As for the spending on those cards, 70% of purchases are for non-discretionary expenses such as groceries and utilities.

“We earn the substantial majority of our revenue through interchange-based fees from debit and credit card transactions,” the filing said.

As is standard in SEC filings, there are several risk factors detailed, and for Chime, the dependence on interchange is discussed as a risk. Interchange fees have been in regulatory flux over the past several years.

“Changes in rules and practices regarding interchange fees, card network fees, and other fees and assessments may adversely affect our business, financial condition and results of operations…,” the filing said. “We are dependent on our bank partners’ compliance with card network requirements. We also depend in part on the maintenance of our bank partners’ qualification for the small issuer exemption, which exempts certain banks from the regulated limitations on debit card interchange fees imposed by the Durbin Amendment … and if any of our bank partners were to become subject to such limitations on debit card interchange fees, our payments revenue may be harmed.”

Chime’s financials indicate that in 2024, the company generated $1.3 billion in payments revenue, up 25% from 2023’s levels, accounting for 76% of the consolidated top line. Platform-related revenues were the remaining $397 million, through FDIC-insured deposit accounts, checking accounts and other mobile banking offerings.

In a snapshot of the use of the platform, the company indicated that members have been using SpotMe for fee-free overdrafts and MyPay, which allows members to access up to $500 of earned wages on demand. Through the first quarter of 2025, members have accessed $43.3 billion from SpotMe since its 2019 launch and $8.8 billion through MyPay since its launch in July 2024, per the filing.

Separately, the filing revealed an increase in the allowance for credit losses on loans held for investment, which are comprised of the MyPay loans. The allowance was $30.6 million at the end of last year and now stands at $52.5 million as of the March quarter.

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