It’s hard to avoid, but if you haven’t paid much attention to the booming IPO market, 2020 saw a record 480 companies go public, led by names like Snowflake (SNOW), Airbnb (ABNB), DoorDash (DASH), Palantir (PLTR).
And picking up right where we left off, less than three weeks into 2021, we’ve seen three companies make splashes in their Wall Street debut, which includes Affirm (AFRM), who took advantage of a hot and growing fintech market. The “buy-now-pay-later,” interest-free payment company had been near the top of the list of many IPO watchers. And on day one, it didn’t disappoint, with shares jumping more than 100%, to shoot up to over $90 a share.
The reason many are so bullish about the fintech market, all stems from the rapid acceleration of the e-commerce industry we saw in 2020. We were certainly always headed here, but with the global pandemic and all the shutdowns that came with it, businesses were forced to adapt to rapid consumer demand for online shopping. And it’s hard to imagine that regressing much.
This is where a company like Chime comes in. Chime a “next-generation” bank, that appeals to the enormous millennial and Gen Z crowd. The company has no physical locations and only operates online, and through its mobile app. It’s believed the company will go public at some point in 2021.
As Market Realist points out, Chime offers several innovative and consumer-friendly features like its “Spending Account” checking account a which does not charge any fees or insists on a minimum balance. The company earns money when Chime users use their Visa debit card, but the money comes from the merchant and not the account holder.
But maybe the most appealing feature Chime offers is the ability for users to get paid two days before their paycheck… or in these days, before their stimulus payments. Some Chime users already received a $200 advance on stimulus checks for eligible account holders through its SpotMe plan. Not a bad deal.