The Growing Domination Of Chime, Cash App, And PayPal In Banking

  • “More than a quarter of Gen Zers (21 to 26 years old) and nearly a third of Millennials (27 to 41) now call a digital bank their primary checking account provider. Among Gen Xers (42 to 56), the percentage who have their primary account with a digital bank grew from 8% to 22%. Overall, six in 10 Gen Zers and Millennials whose primary checking account is with a digital bank has that account with Chime, PayPal, or Cash App.
  • Since the start of the pandemic, however, the percentage of Gen Zers whose primary checking account is with a megabank has dropped from 35% to 25%.
  • Chime is a strong neobank among Millennials, and is growing its primary customer share among Gen Xers. But its primary status among Gen Zers has slipped since 2020—from 6.5% in October 2020 to 4.6% in January 2022. PayPal and Square picked up the slack—and more—with 8% of Gen Zers now calling PayPal their primary checking account provider, and 4% applying that label to Cash App.”

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