Chime Introduces Cash-Back Secured Credit Card for Users

SAN FRANCISCO, United States – Chime announced today the launch of a new secured credit card that offers 1.5% cash back on purchases in select categories, such as groceries, restaurants, and gas. The company aims to attract a wider user base with this latest financial product, which will be available to its Chime+ members.

The newly introduced card allows customers to earn rewards while using their secured credit by maintaining a balance in their Chime checking account. This feature is aimed at individuals looking to build or improve their credit history, especially those who may not qualify for traditional credit cards.

Vineet Mehra, Chime’s chief marketing officer, stated, “With the new Chime Card, we’re building on top of the everyday banking features our members already rely on, to make the Chime experience even more rewarding.” The company intends to change the eligible cash-back categories every few months to keep users engaged.

Established in 2012, Chime has rapidly grown into the largest digital bank in the U.S., serving over 8.7 million customers. The launch of this card marks Chime’s response to competition from other banks offering cash-back rewards on secured cards. Notably, Capital One and Discover have long been in this space, providing cards with various benefits and interest rates.

Chime’s version is distinct, as it requires users to pay their balance in full chaque month, unlike some competitors which allow customers to carry a balance while incurring interest charges. The design options for the new card include a free standard card and a titanium option available for an additional fee.

Moreover, existing holders of Chime’s original Credit Builder card can upgrade to the new cash-back card through the Chime app. The public launch is part of Chime’s broader strategy to enhance customer satisfaction and stimulate growth in a competitive fintech landscape.

The rollout of the new Chime Card began in August and will continue in the upcoming months as the company looks to bolster customer engagement and generate higher user growth metrics.