Leading U.S. digital bank Chime is increasingly turning to a conventional customer acquisition strategy in financial services: cash-back rewards. People who sign up for Chime’s secured credit card and direct-deposit at least $3,000 into their Chime checking account each month will qualify for a new, free rewards program called Chime Prime. In one spending category of their choice—such as groceries, gas or travel—they’ll get 5% cash back on up to $1,500 a month in expenses, capping the reward at $75 per month.

Last fall, the fintech company began offering 1.5% cash back on two pre-determined categories. Chime’s chief corporate affairs officer Jennifer Kuperman says the new rewards scheme will deliver higher cash-back rewards for customers. Some of the other perks that come with Chime Prime include a 3.75% interest rate on cash in a Chime savings account and access to hundreds of airport lounges through the Priority Pass network.

Chime’s credit card is a secured card, and the spending limit equals the amount of cash held in a Chime checking account. If customers direct-deposit less than $3,000 per month but at least $200, they’ll qualify for a lower tier of rewards called Chime Plus, which comes with 2% cash back in one spending category and a 3% interest rate on savings........

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