Chime Financial: Exploring Key Post-Print Debates

Research evidence excerpt

Chime Financial: Exploring Key Post-Print Debates

21 May 2026

Chime Financial

improvement in MyPay loss rates and better performance in Instant Loans as

underwriting models and cohorts mature.

Finally, we received feedback that MyPay results in 1Q26 missed the bogey.

However, we are less concerned on this point as we believe MyPay performance

in the qtr. can be explained by seasonal factors (i.e., less uptake of liquidity

products during tax refund season which was further exacerbated this year by

higher Y/Y refunds). We expect that MyPay will continue to increase as a

percentage of platform-based revenue through the remainder of our forecast

period as CHYM’s active base seeks liquidity.

In this note, we explore each of these debates in greater detail alongside analysis

with our assumptions on take rate, transaction and risk losses, and MyPay. While

we remain Hold rated, we believe CHYM is well-positioned for long-term growth

and the company's demonstrated strength in underwriting, strategic focus on

credit expansion with new cohorts, and the expected normalization of seasonal

liquidity product demand all contribute to a strong outlook.

How much of a tailwind can credit penetration provide to take rates?

CHYM has seen early success rolling out its newly revamped credit offering,

Chime Card, which should provide multi-year tailwinds for the company as it

continues to grow as a portion of overall payment volume. However, going

forward we expect that the increase in credit penetration will be at a more

moderate rate compared to the prior 2 quarters (sequentially increased ~3ppt and

~4ppt in 4Q25 and 1Q26, respectively) as much of the adoption is being driven

by new cohorts and CHYM already converted much of the “low hanging fruit”