Missed Circle? Don’t Miss Chime! Can it Light Up Wall Street Tonight?
$Chime Financial, Inc.(CHYM)$ is set to begin trading tonight. The company priced its IPO at $27 per share, above the expected range, valuing Chime at $11.6 billion.
🔥 Chime’s Rise: The “Pinduoduo Type + GrabPay Service” in US?
With slogans like “Banking shouldn’t punish the poor”, Chime offered no annual fees and no minimum balance penalties, processing transactions through partner banks while focusing solely on user experience.
Its viral growth came from a referral system similar to $PDD Holdings Inc(PDD)$ “invite to slash” model, and its reputation skyrocketed when it gave users early access to government stimulus payments during the pandemic.
Now, Chime has over 12 million active users, with 22% treating it as their primary bank, and customer acquisition costs have been halved.
Clean, Simple, Scalable Business Model for Company; Feasible Growth Model for Users
Revenue is primarily interchange fees. When users swipe their Chime Visa card $Visa(V)$ , merchants pay transaction fees, and Chime takes a cut.
67% of users rely on Chime as their main bank account. The company focused on daily spending, early wage access, no high-risk loan issuance.
In a country where credit history is everything, Chime offers a “credit builder” card—a secured card with low limits to help users build credit over time, opening doors for immigrants and younger generations locked out of traditional finance.
But risks remain: digital banking space is heating up. Cash App is scaling aggressively. $SoFi Technologies Inc.(SOFI)$ is slashing fees. Even Bank of America now offers early wage access. If Chime’s user experience stops standing out, customers—who face low switching costs—could easily leave.
A Booming Open Banking Market That Is Set to Nearly Triple by 2030!
Chime sits at the heart of the booming U.S. open banking market, which is worth $7.1B in 2024 and projected to surge to $31B by 2030, with a 27.9% CAGR from 2025 onward (Grand View Research).
During the pandemic, Chime’s valuation skyrocketed. Its Series G round in 2021 priced shares at $69.07, reflecting sky-high growth expectations. The current $27 is more reasonable.
Circle recently IPO’d at $31 and surged to $130 in two days, doubling at open. While Chime may not have the buzz of a “first stablecoin stock,” Circle’s momentum could spill over, and a closing price of $30–$40 tonight wouldn’t be surprising.
Missed Circle? Will you watch Chime trade tonight?
With IPOs on fire lately, are you bullish on new listings, or sticking to established names?
And what’s your take on BNPL—convenient, or just a trap for overspending?
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sounds like a stock worth monitoring. but I guess I won't be so aggressive and employ the wait and see approach [Serious] [What]
With slogans like “Banking shouldn’t punish the poor”, Chime offered no annual fees and no minimum balance penalties, processing transactions through partner banks while focusing solely on user experience.
Its viral growth came from a referral system similar to $PDD Holdings Inc(PDD)$ “invite to slash” model, and its reputation skyrocketed when it gave users early access to government stimulus payments during the pandemic.
Now, Chime has over 12 million active users, with 22% treating it as their primary bank, and customer acquisition costs have been halved.
And what’s your take on BNPL—convenient, or just a trap for overspending?
All valid comments will receive 5 Tiger Coins
The first 10 and last 10 valid comments will receive an additional 10 Tiger Coins
Should be quite unique in comparison to traditional banks. Moreover no minimum balance requirements, overdraft fees etc. Hope that it will continue to innovate its services to the consumers in US and expand its business progressively. Cheers Chime. [Smile] [Smile]
Chime priced its IPO at USD 27 per share, valuing it at USD 11.6 billion. Its stock surged as high as 59% on its debut.
Some analysts said that Chime's IPO could reignite Fintech investment following strong debut from Circle. However others caution that Chime's reliance on interchange fees and regulatory risks could pose challenges in the long run.
Whether this IPO is just a flash of excitement or the spark that reignites Fintech's growth, one thing is clear - the financial landscape is evolving and investors are paying attention.
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现在轮到Chime了，虽然它不具备“稳定币”的噱头，但在Circle带动的热潮下，资金很可能外溢。我今晚肯定会盯着盘面，看看市场是否会把Chime当成下一个金融科技爆点。假如它今天收在$30-$40之间，我一点都不会惊讶——毕竟当前市场情绪正热，再加上Chime本身有庞大的年轻用户群、简洁的银行服务模式，不缺看多的理由。
整体来看，我最近对新股的兴趣是回来了。过去一年IPO市场冷得像冰窖，但从Reddit到Astera Labs，再到Circle，现在似乎进入了一个新周期。新股火爆的背后，不只是投机情绪，也体现了市场对新技术和新商业模式的再度接纳。当然，我并不是盲目追涨的那种，会挑那些基本面稳、有长线潜力的项目布局，而不是跟风进场就等着“翻倍”出逃。
至于BNPL（先买后付），我个人是谨慎偏负面的看法。对消费者来说，它看似方便、无息，实则诱导超支消费，尤其是在年轻人中间，一张卡点几下就分期，短期压力没了，但长期债务却悄悄累积。这对信用体系不健全的人来说，不是工具，是陷阱。而对平台和投资者而言，这种模式风险也越来越大，坏账率上升和监管压力早晚要来收割。
所以，今天如果你问我选什么——我可能会错过Circle，但我不会忽略Chime。我不会盲目追新股热，但会借热潮挖机会。而BNPL？我会用，但绝不会爱上它。
I will take a look at Chime's transaction tonight. After all, it is not a "speculative concept" company in the traditional sense, but has actually accumulated a group of loyal users in the US market. Its no-monthly Checking Account has indeed solved the pain points for low-and middle-income groups, and user growth is considered healthy. However, the valuation is no longer cheap, and the pricing at the time of listing exceeded expectations, which makes me have some reservations about its short-term space.
IPOs have really been hot recently, with Astera Labs, Reddit, and Rubrik coming one after another. It can be seen that market funds have indeed returned, and sentiment is also recovering. But I am a conservative person, and I would rather wait for these companies to run a few quarters of financial reports before deciding whether to hold them for a long time. After all, after the heat fades, what can stay is really worth investing in.
As for BNPL (buy now, pay later), I actually used it once myself, but to be honest, I am more wary of its long-term development. On the one hand, it does provide consumption convenience, especially for young people; But on the other hand, it makes consumption "painless", which can easily lead to advanced consumption and impulse shopping. There are friends around me who borrowed a lot of small debts from the BNPL platform, and finally got into trouble.
From an investment perspective, there is no doubt about the growth of BNPL platforms such as Affirm and Afterpay, but bad debt risks and regulatory issues will emerge sooner or later. If the economy goes down and the default rate of users rises, their vulnerability will be obviously exposed. So I will pay attention to this track, but I prefer to choose companies with strong risk control capabilities and deep binding to large platforms, such as Affirm, which cooperates with Amazon.
To sum it up: I will watch Chime, but I won't chase it impulsively; I am optimistic about some IPOs, but I trust the companies that have already run out more; As for BNPL, it is a good tool, but for consumers and investors, it is necessary to see clearly the "price" behind it.
67%的用户依赖Chime作为他们的主要银行账户。该公司专注于日常支出，提前获得工资，没有高风险贷款发放。
在一个信用记录就是一切的国家，Chime提供了“信用建设者”卡–低限额的担保卡，帮助用户随着时间的推移建立信用，为被传统金融拒之门外的移民和年轻一代打开大门。
現在，Chime擁有超過1200萬活躍用戶，其中22%的用戶將其視爲主要銀行，客戶獲取成本已減半。