Type Private Area served United States Products Mobile application Founders Jasper Platz, Jason Brown | Industry Technology Key people Jason Brown (CEO) Founded 2015 | |
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Headquarters San Francisco, California, United States | ||
Tally Technologies, Inc. is a U.S.-based financial services company headquartered in San Francisco, California. The Tally smartphone app allows individuals to manage and pay their credit cards.
Contents
Founders and Investors
Jason Brown and Jasper Platz, who previously founded Gen110, Inc., a solar energy company funded by Kleiner Perkins Caufield & Byers, started Tally in 2015. Brown and Platz realized that since credit card annual percentage rates (APRs) are typically 15 to 20 percent and late fees are common, there was an opportunity to make credit cards "less expensive and easier to manage".
In June 2015, Tally closed a $2 million Seed funding round led by Aileen Lee at Cowboy Ventures 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).
Features
The Tally app allows individuals to avoid credit card late fees and get a lower APR. 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. If approved, Tally pays off the high-interest cards using a new Tally line of credit with a lower rate. 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.
Every month, Tally pays each credit card on the user's behalf and then the user makes one monthly minimum payment to Tally. Since Tally’s APRs are less than standard credit card APRs, users can save money on interest and have lower monthly payments.
Business Model
Tally earns revenue when a user carries a balance. Since the company does not charge any fees such as balance-transfer, annual, prepayment, late- or insufficient-funds fees, the company only generates revenue when a user's Tally APR is less than his or her credit card APR.