8.6 C
New York
Friday, December 9, 2022
Home Challanger banks Chime pilots $1,200 instant stimulus in forward

Chime pilots $1,200 instant stimulus in forward

Chime, the biggest U.S. digital bank start-up, is piloting a way for its users to receive their federal $1,200 stimulus checks instantly.

This would come weeks before the government is expected to send the payments.  

Chime is a San Francisco-based company and they randomly picked 1,000 of its customers to get the payments Thursday using a feature called SpotMe. This usually allows members to go negative in their accounts without incurring fees. 

The thing is, the bank is using its own capital to front the money until the government makes those payments, part of the historic $2 trillion coronavirus relief package signed into law last week.

Read also: Starling Bank launches a “Connected card” to tackle COVID

It is taking on some risk, according to CEO Chris Britt. He wants reassurance from the government that Chime users can’t redirect stimulus payments to other bank accounts, he plans on expanding it to more of the bank’s 8 million users, he said. 

“We think the aggressive action taken by the government is awesome, and we applaud it, but consumers need faster access to that money to pay their bills,” Britt said in a telephone interview.

“The insight we got from our first [stimulus funds advance] pilot was that the vast majority of people did not want to access the full $1,200,” says Chris Britt, CEO of Chime.

“We’re putting real dollars on the line, without interest rates or guarantees. We’d love to give it to more people. If we had greater certainty that the payments will hit our accounts, we’d do it.”

The number of Americans filing for unemployment benefits surged by 10 million in the last two weeks.

That is an unprecedented event caused mostly by shutdowns as the country attempts to slow the spread of the coronavirus.

This will definitely cause widespread hardship, especially among people with little savings. 

The idea of the program came in discussions with entrepreneur Mark Cuban, owner of the Dallas Mavericks. Britt has become friendly with Cuban after the two agreed to a sponsorship deal.

Source: https://www.fintechfutures.com/2020/04/chime-pilots-instant-1200-stimulus-check-payments/https://www.cnbc.com/2020/04/02/chime-bank-pilots-way-to-get-1200-stimulus-checks-to-users-instantly.html

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Curve has secured a $1 billion credit line from Credit Suisse to launch Curve Flex

Curve is a financial service provider that connects debit and credit cards into one. With great exchange rates, rewards, and insights across...

Revolut won’t refund money to a woman who got scammed of £8,000 from her Vaults

Deborah Wright lost £8,000 of savings from her Revolut accounts to fraud in October, BBC reported.

TS Anil, CEO of Monzo, claims the bank will turn into profit in 2023

“We will be profitable in the next financial year,” TS Anil, chief executive of Monzo, told the FT’s banking summit on Thursday.

Klarna launched the platform that helps retailers to increase sales by 300% 

Recently the world-leading global retail bank Klarna has launched their new Creator platform that helps retailers find influencers best suited to their...