Mobile bank Chime goes dark for millions of customers as it seeks $5 billion valuation

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Mobile bank Chime goes dark for millions of customers as it seeks $5 billion valuation
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Branchless bank Chime is experiencing outages that are leaving customers stranded without access to their money.

, is in the midst of a service outage that has left millions of customers without access to their accounts.

Chime has been experiencing torrid growth lately, going from 1 million users in mid-2018 to more than 5 million this year. That has put the firm in the vanguard of an industry that is beginning to take off in the U.S. after the rise of so-called challenger banks in the U.K. and Europe.

The outage was caused by an issue with the database of payment processor Galileo, according to people with knowledge of the matter. The Salt Lake City, Utah-based software company said it began experiencing an "operational incident" on Tuesday affecting its ability to "support transactions for a small number of our clients and their customers."

Galileo customer Revolut said that "no services were affected". Varo, another client, said it "experienced a minor disruption in processing" but that these issues are now mostly resolved. Monzo and Transferwise did not immediately respond to CNBC's request for comment.

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