Tally Technologies

For other uses, see Tally.
Tally Technologies, Inc.
Private
Industry Technology
Founded May 2015 (2015-05)
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.meettally.com

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

Jasper Platz and Jason Brown in San Francisco

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. 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.
  2. 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.
  3. 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.
  4. Kleiner Perkins Caufield & Byers. "Gen110". KPCB. Retrieved 31 May 2016.
  5. Mitroff, Sarah (17 May 2012). "Gen110 grabs funding from Kleiner Perkins Caufield & Byers". Venture Beat. Venture Beat. Retrieved 31 May 2016.
  6. Wang, Ucilia (17 May 2012). "Kleiner Perkins backs solar sales & marketing startup". Gigaom. Gigaom. Retrieved 31 May 2016.
  7. "The Consumer Credit Card Market" (PDF). CFPB. CFPB. December 2015. Retrieved 31 May 2016.
  8. 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.
  9. 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.
  10. 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.
  11. Oldshue, John (25 May 2016). "Tally App Aims to Lower Your Credit Card Interest Rates". LowCards.com. LowCards.com. Retrieved 31 May 2016.

External links

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