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Chime and Affirm Show the Trade-Offs Behind Credit Growth

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Chime and Affirm Show the Trade-Offs Behind Credit Growth

Cash App counted 9.4 million primary banking actives in September, unchanged from June.

Chime reported higher losses in the third quarter as more Prime members borrowed for the first time.

Affirm expects to begin testing installment loans on other issuers’ debit cards in the first half of 2027.

FinTechs are expanding their lending businesses from two places customers already visit: the app where their paychecks land and the card they bring to the store.

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Two examples have jumped out recently. Chime is testing a credit line for customers who deposit at least $3,000 a month to qualify for Prime. Affirm’s debit card is bringing its installment loans to purchases outside the merchant checkouts where it has signed agreements.

Chime reported higher losses during its third-quarter earnings results Nov. 4 as more Prime members borrowed for the first time, while Affirm said as part of its first-quarter fiscal year 2027 earnings results Thursday (Nov. 5) that it typically earns less from the merchant side of a card transaction than from a checkout integration.

“On average, the interchange that we collect is probably lower than the average merchant discount rate that we would have through an integrated merchant,” Affirm Chief Financial Officer Rob O’Hare said during an earnings call. More than 80% of loans made through Affirm Card historically carried interest. Cardholders also make purchases that they pay in full.


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