How Chime Makes Money When Banking Is Free

How does Chime generate billions in revenue while offering a checking account with no monthly fee or overdraft fee? This video follows one paycheck and one $40 grocery purchase through the payment system to explain Chime's business model. We break down: • Why Chime is a financial technology company, not a bank • How partner banks, processors, card networks, and interchange fit together • How Chime earns from card payments, MyPay, instant transfers, savings, and lending products • Why $2.19 billion in revenue is not the same as profit Sources: Chime Financial 2025 Form 10-K: https://www.sec.gov/Archives/edgar/da... Chime annual reports: https://investors.chime.com/financial... Chime fee information: https://www.chime.com/online-banking/... Chime MyPay: https://www.chime.com/mypay/ Educational disclaimer: This video is for general educational and informational purposes only. It is not financial, investment, legal, tax, or banking advice. Product terms, fees, and financial results can change. Review current disclosures and consult a qualified professional before making decisions about your own situation. Business Made Simple explains how companies really work. Subscribe for evidence-based breakdowns of business models, revenue engines, competitive strategies, and the economics behind familiar brands. Chapters: 00:00 Who pays Chime? 00:41 Follow the paycheck 00:54 Chime is not a bank 01:56 What happens when you use the card 03:03 The fee you never see 04:11 Chime's revenue at scale 05:30 Revenue beyond card payments 07:24 Is free banking really free? 07:54 Revenue is not profit 08:52 Three questions to ask #Chime #Fintech #BusinessModels