nav
Business Models Business Operations

How Does Tally Make Money (Business and Revenue Model)

The Tally business model

Tally logo
Here’s what you should know:
  • What is Tally, and how does Tally work?
  • How does Tally make money?
  • Interest Revenue (from Tally’s line of credit)
  • Annual Fees (Tally+ Membership)
  • Tally profit and revenue
  • What is the Tally business and revenue model?
  • Tally funding, net worth, and valuation
  • Tally subsidiaries, acquisitions, and exits

How does Tally make money? Here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Tally business and revenue model, how much money Tally makes per year, and how Tally works.

What is Tally, and how does Tally work?

Tally is a financial app that helps members pay off credit card debt.

Founded in 2015 by Jason Brown and Jasper Platz, Tally has since noted that they have “saved people millions of dollars on credit card interest and late fees since 2015.”

So, how does Tally work? To use Tally, simply download their app from the Apple App Store or Google Play store, create an account, and add your credit cards.

Tally will then do a credit check to see if you’re eligible for their line of credit (which generally requires at least a 580 FICO score). If eligible and you accept their LOC offer, Tally will immediately start paying off your cards with your Tally line of credit.

From there, Tally will then consolidate all your card payments into one bill that you will pay Tally monthly on.

Some of Tally’s competitors include Acorns, Digit, DaveChimeMint, Wealthfront, Ally, Betterment, SoFi, Stash, Personal Capital, and other savings and budgeting apps.

Tally App in Apple App Store | Tally Business Model | How Does Tally Make Money? | How does Tally work?
Source: Apple App Store | Tally

How does Tally make money?

Although Tally does not make note of how many users they have, Tally does vaguely note that they have “saved people millions of dollars on credit card interest and late fees since 2015.”

So how does Tally make money off of all this money they saved for users?

Below is a breakdown of how much money Tally makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways of how Tally makes money in 2022

Tally has a revenue model that makes money in two (2) ways; interest revenue from the Tally lines of credit they give out and through annual fees from Tally+ memberships.

#1. Interest Revenue (from Tally’s line of credit)

Tally makes most of its money from the interest they collect from the lines of credit they give to qualifying users.

If approved, lines of credit amount to between $2,000 to $25,000 and will be between a 7.90% to 29.99% APR. The average Tally line of credit for members is a 14.99% APR, according to Tally.

So for example, if a user spends $15,000 of their Tally credit line to pay off debt at a 14.99% APR and 1.67% minimum monthly payment of $251. This means they will pay Tally around $7k in interest on that $15k spent if it takes them 36 months to pay it off.*

*Tally interest rates are not locked. Meaning the borrower’s APR changes as U.S. interest rates move. And, of course, Tally makes more money from more interest the longer it takes a borrower to pay it off.

How much does Tally charge? (Tally line of credit interest rate)

  • between a 7.90% to 29.99% APR

Note: The average Tally members line of credit is a 14.99% APR.

#2. Annual Fees (Tally+ Membership)

Tally also makes money from the annual fees they charge eligible users using the Tally+ membership.

For an annual fee of $300, Tally+ members get access to a higher line of credit, membership discounts that effectively lower members’ interest rates by an average of 4%, Tally’s credit card manager, and more.

How much does Tally cost? (Tally monthly payment)

  • $300 annually ($25 per month)

Note: The $300 annual fee is paid from the from Tally credit line.

Tally profit and revenue

Tally has not released any official reports in regards to company earnings.

Note: Because Tally is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Tally business and revenue model?

Tally makes money through a few revenue models that they combine within their company, they are:

  • Interest based revenue model
  • Subscription business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

Tally funding, net worth, and valuation

Looking at Tally’s Crunchbase profile, Tally has raised $92 million over 5 rounds and has a post-money valuation of $100 million to $500 million as of June 18, 2019.

Tally subsidiaries, acquisitions, and exits

To date, Tally has not made any acquisitions, investments, or exits.