Chime will soon add an earned wage access offering called MyPay to its banking app.
The FinTech company has opened a waitlist for MyPay and will begin onboarding “soon,” according to a Wednesday (May 15) press release.
With MyPay, qualifying Chime members will be able to access between $20 and $500 of their pay before payday during each pay period, depending on their limit that is based on estimated income and risk-based criteria, according to the release.
They will be able to see their available advance amount through MyPay, within their Chime checking account in the Chime app, the release said.
Members can choose to have the funds deposited to their Chime checking account within two days for free or to get the funds instantly for a $2 fee, per the release.
MyPay is designed to help Americans who live paycheck to paycheck, must wait at least two weeks to receive their pay, and often turn to high-interest credit cards, payday loans or overdraft fees to meet expenses between paychecks, according to the release.
“Two-week pay cycles are outdated, and people need good ways to access money between paydays,” Chris Britt, CEO and co-founder of Chime, said in the release. “We are proud to offer people greater control over their pay and lead the way in transforming how people get paid in America.”
PYMNTS Intelligence has found that 56% of consumers with earned wage access said they have used it. The solution is especially helpful for gig workers and contractors who are more likely to face financial insecurity than their salaried counterparts, according to “The Rise of Instant Payroll and Early-Access Compensation,” a PYMNTS Intelligence and Ingo Money collaboration.
Chime’s announcement of its earned wage access offering comes soon after the company added some other features to its banking app.
In March, the firm said that its fee-free overdraft feature, SpotMe, is now available when members use the Chime Secured Credit Builder Visa Card, in addition to debit card purchases and cash withdrawals.
Also in March, Chime expanded the availability of free access to its in-app tax filing pilot program, making it available to millions more eligible Chime members.
