Chime Financial Targets Public Listing in US

Chime Financial Targets Public Listing in US in 2025

• Fintech was valued at $25 billion in 2021 as tech boomed
• Company has taken aim at banks by offering fee-free services

Chime Financial Inc., a fintech firm taking aim at the bigger banks by offering fee-free services, is planning to list the company in the US next year, according to a person familiar with the matter.

Chime is yet to engage banks on the expected initial public offering, the person said, asking not to be identified discussing private information. A representative for the company declined to comment.

Chime has been a closely watched IPO candidate for a few years after it won over customers unable to stomach the fees on overdrafts and accounts charged by most banks. The company scored a $25 billion valuation in 2021 at the peak of a technology boom which then faded as interest rates and inflation rose. The market for first-time share sales is rebounding after two of the slowest years in a decade, with social media company Reddit Inc.’s much anticipated public listing this week likely to fire the starting gun for tech companies whose offering plans have been on hold.

Co-founder Chris Britt said in an interview in December that the company was “as IPO ready as a company can be,” adding he was going to wait and see how the economy and stock market fared in the first half of 2024. “We are certainly at the scale to be a nice public company,” he said at that time.

Read More: Why Biden Is Cracking Down on Bank Overdraft Fees

Banks have come under increasing scrutiny from lawmakers and regulators for the fees they charge, prompting some to drop or curb those costs. In 2018, Chime offered a fee-free overdraft with its SpotMe product, an offering it said it pioneered. It also offers a secured credit card with no annual fee or interest.

Chime makes money by collecting a portion of interchange fees. When customers make purchases with their debit or credit cards, Visa collects an interchange fee from the merchant for processing those payments. Chime takes some of that toll.