Tally Technologies
|
Tally’s logo as of May 2016 | |
| Private | |
| Industry | Technology |
| Founded | May 2015 |
| Founders |
Jason Brown Jasper Platz |
| Headquarters | San Francisco, California, United States |
Area served | United States |
Key people | Jason Brown (CEO) |
| Products | Mobile application |
| Services | Personal finance, Mobile application |
Number of employees | 8[1] |
| Website |
www |
Tally Technologies, Inc. is a U.S.-based financial services company headquartered in San Francisco, California.[2][3] The Tally smartphone app allows individuals to manage and pay their credit cards.[1][2][3]
Founders and Investors
Jason Brown and Jasper Platz, who previously founded Gen110, Inc., a solar energy company funded by Kleiner Perkins Caufield & Byers,[4][5][6] started Tally in 2015.[3] Brown and Platz realized that since credit card annual percentage rates (APRs) are typically 15 to 20 percent[2] and late fees are common,[7] there was an opportunity to make credit cards "less expensive and easier to manage".[1]
In June 2015, Tally closed a $2 million Seed funding round led by Aileen Lee at Cowboy Ventures[3] with participation from Accelerate IT Ventures (AITV) and Sherpalo Ventures. In May 2016, the company secured a $15 million Series A round led by Sean Flynn at Shasta Ventures, with participation from existing investors as well as Silicon Valley Bank (NASDAQ: SIVB).[1][3][8]
Features
The Tally app allows individuals to avoid credit card late fees and get a lower APR.[1][3][9] To sign up for the service, the user is asked to scan her credit cards into the app and agree to a soft credit check.[1][2][3][9] If approved, Tally pays off the high-interest cards using a new Tally line of credit with a lower rate.[1][2][3] The credit line is a revolving account, which functions like the credit limit on a credit card, and is available to customers with at least a 660 FICO credit score.[2][10]
Every month, Tally pays each credit card on the user's behalf and then the user makes one monthly minimum payment to Tally.[2] Since Tally’s APRs are less [3] than standard credit card APRs, users can save money on interest and have lower monthly payments.[1][2][11]
Business Model
Tally earns revenue when a user carries a balance.[2] Since the company does not charge any fees such as balance-transfer, annual, prepayment, late- or insufficient-funds fees,[10] the company only generates revenue when a user's Tally APR is less than his or her credit card APR.[8][10]
References
- 1 2 3 4 5 6 7 8 Kolodny, Lora (May 19, 2016). "Tally raises $15 million for app to make credit cards less expensive, easier to manage". TechCrunch. Retrieved May 22, 2016.
- 1 2 3 4 5 6 7 8 9 Lieber, Ron (19 May 2016). "A Service to Pay Off High-Interest Credit Cards, but a Bad Time to Start". New York times. New York Times. Retrieved 22 May 2016.
- 1 2 3 4 5 6 7 8 9 Abbruzzese, Jason (29 May 2016). "A new app wants to help you beat the credit card companies". Mashable. Mashable. Retrieved 31 May 2016.
- ↑ Kleiner Perkins Caufield & Byers. "Gen110". KPCB. Retrieved 31 May 2016.
- ↑ Mitroff, Sarah (17 May 2012). "Gen110 grabs funding from Kleiner Perkins Caufield & Byers". Venture Beat. Venture Beat. Retrieved 31 May 2016.
- ↑ Wang, Ucilia (17 May 2012). "Kleiner Perkins backs solar sales & marketing startup". Gigaom. Gigaom. Retrieved 31 May 2016.
- ↑ "The Consumer Credit Card Market" (PDF). CFPB. CFPB. December 2015. Retrieved 31 May 2016.
- 1 2 Hall, Gina (20 May 2016). "Credit card manager Tally raises $15M to cut consumer debt". Silicon Valley Business Journal. Retrieved 31 May 2016.
- 1 2 Roth, Lydia (20 May 2016). "What's New In Small Business: Hiring, Overtime laws, and Credit Card Bill Management". Nav. Nav. Retrieved 31 May 2016.
- 1 2 3 Krasny, Jill (25 May 2016). "A Simple Way to Pay Off Your Most Expensive Credit Card Debt". Credit.com. Credit.com. Retrieved 31 May 2016.
- ↑ Oldshue, John (25 May 2016). "Tally App Aims to Lower Your Credit Card Interest Rates". LowCards.com. LowCards.com. Retrieved 31 May 2016.