Fintech News: The Big Story

This week in TechCrunch Fintech, we delve into the stories of two fintech companies, Tally and Score, that have recently shut down. We also explore Klarna's latest venture into banking and highlight the key happenings in the world of fintech.

Tally, a fintech company dedicated to assisting consumers with managing and repaying their credit card debt, has closed its doors after failing to secure additional funding.

Score, a dating app designed for individuals with good to excellent credit, has also shut down.

The demise of these companies is indicative of the challenging market conditions that many startups are facing.

Klarna's Entry into Banking

Swedish fintech giant Klarna has taken a significant step by expanding into banking. Previously known as a buy now, pay later provider, Klarna now offers a new "balance" account with cashback features. The company is aiming to compete with other fintechs like Revolut and traditional financial institutions like Bank of America and JPMorgan Chase. This move comes shortly after Klarna launched a credit card in the U.S.

Klarna's new "balance" account allows users to earn cashback on purchases made through its app.

European users can earn up to 3.58% interest on their account balances, while U.S. users currently do not have access to interest earning.

This expansion into banking positions Klarna to compete directly with established players in the financial services market.

Fintech Funding and Acquisitions

Several fintech companies have secured funding or been acquired in recent weeks, indicating continued investment in the industry. Here are some key highlights:

Revolut, a UK-based neobank, has confirmed a new valuation of $45 billion through a secondary market share sale, solidifying its position as one of Europe's most valuable private tech companies.

PayZen, a fintech company focused on making healthcare more affordable, raised $32 million in Series B funding led by NEA. PayZen enables patients to pay their medical bills in interest-free installments.

TipRanks, an AI-powered platform that provides stock insights and data, has been acquired by Prytek, a developer of business process products for various industries, for $200 million.

Apple's Move to Open Up NFC Transactions

Apple has responded to pressure from regulators by opening up NFC transactions to third-party developers. This move could potentially lead to increased competition in the mobile payments space.

NFC, or near field communication, is the technology powering Apple Pay and Wallet.

Apple's services unit, which includes payments, generated a record $24.2 billion in revenue during the second quarter.

Fintech News Roundup

Here's a summary of other notable fintech headlines:

Citi and Wells Fargo participated in a $31 million funding round for Setpoint, a loan startup.

Tencent-backed Airwallex, a fintech company, achieved $500 million in annualized sales and is aiming for an IPO by 2026.

Sling Money, a money transfer app, secured $15 million in funding.

Amount, a banking technology startup, raised $30 million in funding.

Podcast Insights

The Equity podcast discussed the shutdowns of Tally and Score, providing insights into the challenges faced by these companies.

Parker Conrad, founder and CEO of Rippling, a HR software and payroll startup, expressed a different approach to building a software business compared to traditional methods. Conrad believes that focusing on a single pain point and gradually adding features as a company grows may not be the most effective strategy. This perspective was shared on TechCrunch's Found podcast.