Chime Financial agreed to acquire Stride Bank for $590 million, marking the latest financial technology company to move toward expanding its brick-and-mortar footprint.

Stride, a nationally chartered bank that has served as Chime's bank partner for more than seven years, will become Chime Bank, a wholly owned subsidiary of the mobile banking platform.

Stride runs Chime's bank accounts for members, so the combination will streamline processes and eliminate costs such as partner-bank fees.

Chime's deal follows a string of other fintech companies getting into physical banking, as many firms are in the process of getting bank charters. Fintechs have been chasing bank charters under the Trump administration, which has moved to create an easier environment for digital banking firms.

Block said Tuesday it had applied to establish a bank, while the British fintech Revolut said last week it gained conditional approval to operate as a physical bank in the U.S. Affirm, PayPal, Circle and Coinbase have also applied for charters.

Chime is taking an alternative route by acquiring an already-chartered bank. Chime expects that the deal, which is slated to close in the first half of 2027, will give it a stronger competitive position, expanding its addressable market across all 50 U.S. states.

Chime also raised its full-year and third-quarter guidance alongside its announcement of the acquisition. It now expects revenue of $2.76 billion to $2.77 billion, up from its previous guidance of $2.73 billion to $2.75 billion for the year.

For the current third quarter, Chime now anticipates $705 million in sales, ahead of the $680 million to $690 million it was previously projecting.

Shares gained 10% to $35.50 in after-hours trading.