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317 Chime’s Payday Lending Is Costly—for Chime

The Information
Cory Weinberg @ The Information 2 place · 05/16/2025 09:00 EDT

Chime’s Payday Lending Is Costly—for Chime

Last summer, banking app Chime introduced a lending product that let customers borrow small amounts to get them through to their next paycheck. Typical payday lenders charge exorbitant fees, but Chime was making the loans largely for free.

The fintech’s big bet is that fronting cash to customers—and only charging people that want extra-fast advances—will boost customer loyalty while also providing some fresh revenue. But Chime is now learning the cost of the loans, just as it tries to convince Wall Street.

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