SAN FRANCISCO–Chime is reporting strong results and usage of its Chime Card, saying more customers are treating its platform as their primary financial relationship.
“Over half of members in our new cohorts are adopting [Chime Card], and those members are using it for over 70% of their Chime spend,” CEO Chris Britt said during an earnings call. Britt added that the cash back, secured card is not simply an add-on product but is influencing how members transact day to day.
Chime said credit spend as a share of purchase volume rose to 21% in December, up from 16% in September. The distinction matters economically because transactions on Chime Card generate roughly twice the take rate of debit purchases, executives on the call stated.
Chime said its consumer base continues to spend even as many Americans have pulled back.
“Despite headlines of a pressured consumer, we continue to see stability,” Britt said. “Member spending remained healthy in Q4, with steady growth across both discretionary and nondiscretionary categories.”
Chime further said roughly 70% of purchase volume falls into nondiscretionary categories, a mix that tends to produce more consistent transaction activity than models tied heavily to discretionary retail cycles.
3 Companies Select Financial Wellness Suite
Separately, Chime is also expanding into turf that has been a traditional strength of credit unions.
Chime Enterprise has announced three of the latest employers that have adopted its financial wellness suite, Chime Workplace.
Chime Workplace is an enterprise financial health solution that includes financial tools such as earned wage access, a high-yield savings account and credit-building tools, Chime Enterprise, the enterprise division of Chime, said in a Monday (Feb. 23) press release.
Employers that recently adopted Chime Workplace include Cedarhurst Senior Living, a caregiving firm based in St. Louis; eXp Realty, a cloud-based real estate brokerage headquartered in Bellingham, Washington; and LRS (Lakeshore Recycling Systems), a waste and recycling services provider headquartered in Rosemont, Illinois, according to the release.
Allie Rapini, director of human resources at Cedarhurst Senior Living, said in the release that workforce stability directly impacts the resident experience in senior living and that the company evaluated its benefits offerings to promote long-term engagement among its caregiving and operations teams.
“We recognized that comprehensive financial wellness tools can play an important role in strengthening retention and supporting employees through real-life financial needs,” Rapini said.
