2 hours ago
1
Leo Sun, The Motley Fool
Thu, January 15, 2026 astatine 11:22 AM CST 6 min read
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Chime’s banal slipped beneath its IPO terms implicit the past 7 months.
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Its slowing sequential maturation spooked the bulls.
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It inactive has plentifulness of maturation potential, but it astir apt won’t mint immoderate caller millionaires.
Chime Financial (NASDAQ: CHYM), a supplier of mobile banking services, went nationalist astatine $27 connected June 12, 2025. Its banal opened astatine $43 connected the archetypal day, but it present trades astatine astir $26.
Chime's banal dipped backmost beneath its IPO terms arsenic investors fretted implicit its slowing growth. Yet with a marketplace headdress of $8.7 billion, it doesn't look costly astatine 3 times adjacent year's sales. For reference, Chime's valuation peaked astatine $25 cardinal pursuing its last backing circular successful 2021.
Could this out-of-favor fintech banal bounce backmost and make millionaire-making gains implicit the adjacent decade? Let's reappraisal its concern model, maturation rates, and challenges to marque a decision.
Chime's online level offers fee-free checking and savings accounts with overdraft protection, aboriginal wage features, and different online banking services. It besides provides a Visa (NYSE: V) debit paper with fee-free entree to implicit 50,000 ATMs, arsenic good arsenic an entry-level Visa recognition card.
Chime is an appealing level for lower-income users who don't person capable assets to unfastened higher-value, fee-free accounts astatine accepted banks. Its aboriginal wage tools are adjuvant for radical who unrecorded paycheck to paycheck, portion its recognition cards assistance them physique their recognition scores.
Yet Chime isn't a bank. Its 2 FDIC-insured banking partners -- The Bancorp (NASDAQ: TBBK) Bank and Stride Bank -- really clasp and negociate each of those accounts. Chime generates astir of its gross by taking a chopped of the "swipe fees" that Visa charges merchants to process debit and recognition paper transactions. A smaller percent of its gross comes from the incentives paid by its banking partners for bringing successful caller accounts.
In 2023 and 2024, Chime added caller progressive members, accrued full acquisition volume, and grew mean gross per progressive subordinate (ARPAM). That's wherefore its banal initially soared.
| Active Members | 6.6 million | 8.0 million | 8.6 million | 8.7 million | 9.1 million |
| Growth (YOY) | 25% | 21% | 23% | 23% | 21% |
| Purchase Volume | $92.4 billion | $115.2 billion | $34.5 billion | $32.4 billion | $32.3 billion |
| Growth (YOY) | 29% | 25% | 18% | 18% | 15% |
| ARPAM | $212 | $245 | $251 | $245 | $245 |
| Growth (YOY) | 1% | 16% | 9% | 12% | 6% |
| Revenue | $1.28 billion | $1.67 billion | $519 million | $528 million | $544 million |
| Growth (YOY) | 27% | 31% | 32% | 37% | 29% |
Data source: Chime Financial. YOY = Year-over-year.
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