Chime reported increased losses in the third quarter of 2024, attributed to a rise in first-time borrowing among its Prime members. The company originated $381 million in Instant Loans during the quarter. Chime requires a monthly deposit of at least $3,000 to qualify for Prime status, with users earning at least $75,000 representing the fastest-growing segment of new sign-ups.
Affirm reported that its debit card had 6 million users who made at least one transaction in the preceding year, accounting for 21% of its active customer base. The company noted that interchange fees from card transactions are generally lower than merchant discount rates from checkout integrations. Over 80% of loans issued through the Affirm Card have historically carried interest.
Affirm plans to launch card-specific financing offers this quarter and expects to pilot its Edge program in the first half of 2027. This initiative aims to integrate installment loans into debit cards issued by other financial institutions. Meanwhile, Cash App maintained 9.4 million primary banking active users as of September, a figure that remained unchanged since June.
The competitive landscape for card issuers remains intense, as 40% of consumers with multiple cards prioritize better incentives like cash back when selecting a payment method. Additionally, research indicates that 82% of buy now, pay later users who utilize four or more providers are willing to pay interest for extended repayment terms, compared to 46% of those using a single provider.
