Chime’s Free Overdraft Feature Extended $30 Billion to Users
FinTech firm Chime says it has covered billions in overdrafts for its users.
Through SpotMe, the banking app’s free overdraft feature, Chime’s members have received a collective $30 billion since 2019 in overdrafts without having to pay a fee, Chime said in a Tuesday (Oct. 1) news release.
Noting that traditional banks typically charge $35 for an overdraft fee, Chime said by offering fee-free overdrafts with SpotMe, it is meeting the short-term liquidity needs of its users. SpotMe allows eligible members to overdraw their account by up to $200 without having to pay a fee.
“We’re happy to announce this important milestone,” Chime CEO and Co-founder Chris Britt said in the release. “SpotMe has changed the lives of millions of Americans who need greater flexibility and access to liquidity. Its widespread impact has been felt beyond our members, and we’re pleased to see others in the industry follow our lead.”
Chime is considering an initial public offering (IPO), PYMNTS reported in March, with plans to go public in 2025.
Britt said in December that the company was “as IPO-ready as a company can be” and was keeping an eye on the conditions of the economy and the stock market.
The FinTech has reportedly selected Morgan Stanley to lead its IPO efforts, PYMNTS wrote last week, citing a report from Bloomberg. When reached by PYMNTS, Chime declined to comment. Morgan Stanley did not reply to a request for comment at the time.
In 2021, Chime was valued at $25 billion and has been seen as a potential IPO candidate, according to the Bloomberg report.
Chime recently expanded its partnership with self-service banking provider NCR Atleos.
Following the expansion, Atleos will start branding ATMs at 4,000 Walgreens stores with the Chime brand to increase customer awareness, according to an Aug. 7 press release.
Since 2021, Atleos has provided ATM access for Chime members at over 50,000 fee-free ATMs.
The expanded relationship will make it “easier than ever for Chime cardholders to identify and use fee-free ATMs to access cash,” Atleos Chief Operating Officer Stuart Mackinnon said in a statement at the time.
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