Leading consumer financial technology company, Chime®, the #1 Most Loved Banking App¹, announced today that its fee-free overdraft feature, SpotMe², has covered its members with more than $30 billion in transactions since the product launched in 2019. SpotMe® empowers everyday people to Unlock Financial Progress™ by providing a safety net when they need it most.
Traditional banks typically charge $35 for an overdraft fee, even though the majority of consumers’ debit card overdrafts are for less than $26.³ Chime was one of the first full-feature accounts to disrupt the traditional banking industry by offering fee-free overdrafts with the launch of SpotMe. The feature provides an opportunity to meet short-term liquidity needs and allows eligible members to overdraw their account by up to $200 without incurring a fee.
Since launching SpotMe, U.S. banks have moved away from their overreliance on overdraft revenue, by lowering fees or eliminating them altogether. However, despite a more than 50% decrease in nationwide overdraft revenues compared to pre-pandemic levels, U.S. banks still collected more than $5.8B in overdraft and non-sufficient funds fees in 2023.⁴ While this indicates some progress, overdraft fees remain a significant burden for many consumers. In contrast, Chime’s SpotMe feature has allowed millions of eligible users to bypass these fees entirely.
“We’re happy to announce this important milestone,” said Chris Britt, Chime CEO and co-founder. “SpotMe has changed the lives of millions of Americans who need greater flexibility and access to liquidity. Its widespread impact has been felt beyond our members, and we’re pleased to see others in the industry follow our lead.”
Chime’s pro-consumer approach to banking services stands out in the financial services sector. As a result of Chime’s position as the platform for which millions of members open their primary financial account, its business model, and its differentiated data set, Chime offers innovative products, like SpotMe, which has no mandatory fees⁵, that help members meet short term liquidity needs in a member-friendly manner. SpotMe is just one feature among Chime’s suite of innovative, easy-to-use financial service products that aim to disrupt the status quo in banking products and intentionally address the needs of everyday people. Chime’s most recent product addition, MyPay™ – a transparent and seamless offering that allows qualifying Chime members to access up to $500 of their pay before payday⁶ within 24 hours fee-free, or instantly for $2 – has surpassed 2 million enrolled members since launching officially in July 2024.