(Reuters) -Chime raised its full-year revenue forecast above Wall Street estimates on Wednesday, as the fintech company sees a surge in new members and robust demand for its digital banking and financial services
Companies like Chime have led fintechs’ push into traditional banking by offering faster digital services, lower fees and more transparent, easy-to-use products that appeal to younger and underserved customers.
Its banking products include checking and savings accounts, and it earns revenue from a portion of interchange, or “swipe,” fees on card transactions.
Chime now expects full-year revenue in the range of $2.163 billion to $2.173 billion versus its prior forecast of $2.135 billion and $2.155 billion. Analysts on average had expected $2.15 billion, according to estimates compiled by LSEG.
Shares of the company were last up 2% in extended trading after results.
The results underscore resilient U.S. consumer spending, with customers relying on debit cards for groceries, gas and bills, a trend that has kept payments and financial services insulated from a broader pullback in discretionary spending.
Chime’s revenue rose 29% to $544 million in the three months ended September 30, compared with a year earlier. Average revenue per active member came in at $245.
The company says its banking model focuses on payments and aims to serve Americans who often have limited credit histories and rely more on debit spending than on credit or loans.
Competition remains intense as traditional banks expand digital offerings while fintechs vie for the same customers.
Chime expects current-quarter revenue between $572 million and $582 million above Wall Street expectations of $569.6 million.
The company also announced a $200 million share repurchase program.
(Reporting by Manya Saini in Bengaluru; Editing by Tasim Zahid)
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