Mobile services fintech firm Chime announced it is acquiring Salt Labs, an employee rewards and incentives platform for frontline workers.
As part of the acquisition, the Salt Labs team, along with CEO Jason Lee and its offerings, will merge as part of the Chime brand. Chime will gain immediate access to Salt Labs’ current client relationships, which they plan to leverage in order to build upon its earned wage access platform, Chime MyPay, according to the firm.
Founded in 2022, Salt Labs gained footing for its “Salt” offerings, an employee rewards benefit that act like a savings account for workers. Specifically, the method allows employees to earn one “Salt” for every hour they work. As their balance grows overtime, workers can exchange their “Salt” for personal value, from savings products to vacations.
“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,” said Chime COO, Mark Troughton, in a statement.
Chime will also launch a new business unit called Chime Enterprise, headed by Lee, that will expand past Salt Labs’ flagship products to focus on Chime’s growth with employer clients.
“We’ve always believed that financial progress begins with employment and should be centered around the primary financial account,” said Lee. “We are thrilled to be part of this next stage of growth at Chime and to build Chime Enterprise alongside the incredible team at Chime.”
The acquisition is the latest development for Salt Labs, who in April, announced that “Father of the 401(k)” Ted Benna would join the company as a strategic advisor, where he would focus on the go-to market strategy aimed at employers wanting to help frontline workers.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
