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Digital bank Chime debuts advance wage product ahead of anticipated IPO
By Jerry
May 14 (Reuters) – U.S. digital bank Chime is launching a product that will allow customers to access up to $500 of their wages before payday, the latest move by a financial technology company to enter the fast-growing “earned wage access” market.
The product, which will be rolled out in coming months, comes as Chime is preparing to become a public company in the “not too distant future,” CEO Chris Britt said in an interview with Reuters.
Earned wage access (EWA) products enable workers to receive a portion of their wages ahead of payday, often via a membership service or for a fee. Providers say the products offer crucial assistance to Americans living paycheck-to-paycheck, particularly gig workers and freelancers. Critics say the products do not have the same consumer protections as loans.
Chime says the product – called MyPay – has no mandatory fees or interest and does not require a credit check. MyPay estimates a customer’s wages for the cycle based on historical data and offers the person up to $500 of the forecast earnings.
Source: REUTER
