Leading consumer financial technology company, Chime, has announced that its fee-free overdraft feature, SpotMe, has covered its members with more than US$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 US$35 for an overdraft fee, even though the majority of consumers’ debit card overdrafts are for less than $26. 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 US$200 without incurring a fee.
Since launching SpotMe, US 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, US banks still collected more than US$5.8bn in overdraft and non-sufficient funds fees in 2023. 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.”