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Exclusive: Credit card repayment startup Tally pivots to B2B

Illustration of a hand using the Tally logo as a hammer to break the ball on a ball and chain.

Illustration: Gabriella Turrisi/Axios

Tally, a startup helping consumers manage credit card debt, is sunsetting its app and pivoting to embed its tech inside the apps and websites of other financial institutions, the company tells Axios exclusively.

Why it matters: Several consumer-facing fintechs started pivoting to a B2B model or adding embedded finance offerings to diversify their revenue streams.

How it works: Tally's consumer-facing app facilitates the reduction of credit card debt, providing a dashboard that shows consumers' outstanding balances and automating the payment process across multiple cards.

  • The company also offered lower-interest lines of credit that directly paid cards on a customer's behalf.
  • Since its launch in 2015, Tally says it has helped users pay down more than $2 billion in credit card debt.

The latest: Now, Tally will provide its credit card repayment technology on a white-label basis to large, publicly traded banks and fintechs.

  • After two years of development, Tally has launched an SDK for Android, iOS and the web so other financial institutions could embed its tech into their own applications.
  • It also created an API that will enable partners to build their own apps that tie into Tally's capabilities without using the SDK.

What they're saying: "My goal has always been to get Tally in the hands of all Americans," founder and CEO Jason Brown says.

  • To get there, he says the company is partnering "with large institutions that already have customers and a desire to provide them with a Tally solution, but don't have the capability to build it themselves."

Friction point: Interest on credit card balances remains a key profit driver for banks. The CFPB reports that major credit card companies charged more than $105 billion in interest in 2022 alone.

  • However, according to Brown, large institutions realize that, while there is a trade-off in potentially reducing interest income, they want to have more visibility into their customers' financial lives and create more engagement with them.
  • "Even though many of these FIs make an immense amount of revenue off of people who carry a balance, they are also very motivated to become the central digital experience for their customers," Brown says.

What's next: The company expects its first B2B partner — described by Brown as "a large, publicly traded FI with 65 million customers" — to go live with Tally's embedded technology in its apps in June.

  • Tally says that while it is sunsetting its consumer offering, it will continue to support existing customers.
  • "We're not abandoning our existing customers … but going forward, once we launch our first partner, we're going to encourage all of our customers to use Tally through their applications," Brown says.

Zoom in: To help fund the strategic transition, the company says it has raised additional funding from insiders including Andreessen Horowitz, Kleiner Perkins and Sway, bringing total funding to more than $200 million.

  • Tally last raised $80 million in Series D funding at an $885 million valuation in October 2022.
  • At that point, it had raised $172 million in total, according to Pitchbook.
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