CHYM, XYZ: Tell 'Em to Bring Me My Money

Research evidence excerpt

CHYM, XYZ: Tell 'Em to Bring Me My Money

Payments, Processors, & IT Services

Payments & Processors - Market Overweight

CHYM, XYZ: Tell 'Em to Bring Me My Money May 26, 2026

The Wolfe Byte

We compare liquidity products across CHYM, XYZ, and DAVE, analyzing unit economics and strategies across

MyPay, Borrow, and ExtraCash. Returns are strong across all three. CHYM stands out with high returns despite

lower pricing. XYZ benefits from captive Cash App user base.

●Over the past year, a significant portion of growth at both XYZ and CHYM can be attributed to each of their

respective short-term liquidity products, Borrow and MyPay. We are constructive on each product as we move

through 2026 but identify key differences across customer acquisition, pricing, eligibility, and economics. We also

draw comparisons to DAVE (uncovered) ExtraCash. The CAC for Cash App Borrow is a competitive advantage

given the size of Cash App's captive user base. Chime MyPay's strong loss rates drive >60% transaction margins

vs Borrow's 40%, even despite lower pricing for MyPay, and we see further upside potential to pricing at MyPay

over time. On an annualized basis, we estimate MyPay's risk-adj yield is also higher at ~52% vs Borrow's ~35%.

Overall, we view short-term liquidity products from neobanks as highly accessible, competitively priced vs

payday loans, a strong alternative to overdraft fees, and more profitable for the companies compared to

traditional credit card and personal loan APRs, even on a risk-adjusted basis. See pages 3-7 for more.

●Where do Neobank Products Fit? Credit card, working capital, payday loans, overdraft: Typical credit card and

personal loan APRs range from 10% to 36%. CHYM and XYZ offerings generate APRs in the ~70% range per our

estimation.