Chime, a leading financial technology entity renowned for its user-friendly banking app, has officially acquired Salt Labs, a pioneering enterprise technology firm dedicated to enhancing the financial well-being of hourly workers.
Salt Labs, established in 2022, specialises in employee reward systems that promote long-term financial security.
The acquisition serves as a strategic move for Chime to broaden its market through innovative enterprise solutions and deepen its engagement with employers. Although the financial details of the transaction remain undisclosed, the acquisition is poised to open new revenue streams and opportunities for primary account growth for Chime by leveraging Salt Labs’ extensive enterprise client relationships.
Chime, acclaimed for its customer-centric banking services, operates under a model that eschews traditional banking fees to offer a fair and transparent financial experience. Its services are tailored to empower its users financially without the burden of overdraft, monthly service, or minimum balance fees.
On the other hand, Salt Labs has carved a niche in the FinTech space with its flagship product, Salt—an employee rewards benefit that functions akin to a savings account, specifically designed for everyday Americans working in various sectors including transportation and hospitality.
With this acquisition, Chime not only enhances its service offerings but also establishes a new business unit named Chime Enterprise. This unit, spearheaded by Jason Lee, founder of Salt Labs, aims to catalyse Chime’s growth through direct partnerships with employers, thereby expanding its consumer base significantly.
The newly formed Chime Enterprise will build on the existing MyPay™ earned wage access platform, which is part of Chime’s suite of financial solutions aimed at facilitating immediate financial access for employees.
Chime COO, Mark Troughton said, ““This is a one-of-a-kind opportunity for Chime to acquire an innovative employee rewards company that has key employer relationships, and a founding team that has created some of the most disruptive technology in the enterprise earned wage access space.
“Through this acquisition, we will aim to partner directly with employers to reach millions of consumers and introduce them to the Chime platform. We look forward to leveraging Salt Labs’ existing relationships with employers and building upon the Chime MyPay™ earned wage access platform to further address the needs of everyday people.”
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
