For many, early access to stimulus funds can be crucial for avoiding personal or business-related bankruptcy amid the COVID-19 pandemic. Fintech firm Chime recognized this pressure by launching a service that "offered 1,000 existing customers early access to their $1,200 in stimulus money from the government." One week of running this service and the demand suggested that the program should be expanded. As a result, Chime opened up the early access to stimulus funds to 100,000 clients, with a limit of advances to $200 per person.
Chime is considered to be the only fintech company to provide a service such as this. Individuals can access this money free of charge and through platforms like PayPal and Square.
Expanding Stimulus Advance Programs
Chime's Program Provides Early Access to Stimulus Funds
Trend Themes
1. Early Access to Stimulus Funds - The trend of providing customers with early access to stimulus funds can help businesses alleviate financial pressures during crises like the COVID-19 pandemic.
2. Expansion of Stimulus Advance Programs - The expansion of programs that offer early access to stimulus funds allows for greater financial support to individuals and businesses in need.
3. Fintech Solutions for Financial Relief - Fintech companies like Chime are leveraging technology to provide innovative solutions for financial relief, such as early access to stimulus funds.
Industry Implications
1. Financial Technology (fintech) - The fintech industry can explore opportunities to develop more advanced and inclusive platforms for customers to access stimulus funds in a timely manner.
2. Payment Processing - Payment processing companies like PayPal and Square can explore partnerships and features that enable their customers to access stimulus funds early.
3. Consumer Banking - Consumer banking institutions can consider implementing similar early access programs for stimulus funds to provide relief and attract new customers.