Fintech company Chime has filed for a Nasdaq listing, planning to trade under the ticker "CHYM". In its prospectus, Chime emphasizes it is a tech company, not a bank, and is not a member of the FDIC. Despite this, it considers major banks like Bank of America, Capital One, Citibank, JPMorgan Chase, PNC Bank, and Wells Fargo as competitors.
Chime generates revenue from transaction fees when members use its debit and credit cards. These fees, collected by banks, are typically a percentage of the transaction value plus a fixed amount determined by credit card networks like Visa. The banks then transfer the funds to Chime.
In the first quarter, Chime reported a net profit of $12.9 million, down from $15.9 million the previous year, with revenues reaching $518.7 million, marking a 32% increase. By the end of March, Chime had 8.6 million active members, a 23% growth, with average revenue per member rising from $231 to $251. The company operates in all 50 U.S. states, with 55% female membership and an average member age of 36. Chime does not operate outside the U.S.
