Chime reaches break even on a typical customer in under a year, according to the people.Ī key to Chime's success so far is that users (most of whom are younger and on a tight budget) have to sign up for direct deposit to unlock features like early delivery of paychecks, and that makes it a core part of customers' financial lives. Insiders claim that Chime has relatively attractive unit economics – meaning the revenue generated by each customer ultimately exceeds the cost to acquire them – and a reasonable path to profitability. The bank will generate an estimated $300 million in revenue this year, largely from swipe fees on debit cards, meaning its valuation is roughly 20 times revenue, a commonly-used metric for start-ups. Chime suffered a service outage in October that led to a surge in customer complaints.
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