LendingClub and Pagaya Acquire Tally’s Credit Card Management Tech
LendingClub and AI lending network Pagaya have acquired Tally Technologies’ intellectual property.
Tally, a FinTech that helped consumers manage credit card debt, closed its doors in August. As the two buyers noted in a news release Wednesday (Oct. 9), the company also created an “embedded, white-label business-to-business credit card debt management platform.”
LendingClub, which helps consumers lower the cost of debt and pay it off faster, said the purchase will quicken the evolution of its member engagement platform.
“Tally’s credit card management platform — along with a few select former Tally employees who have joined our team — will bolster those efforts and accelerate our strategy to empower and engage our members with full visibility into their credit card debt,” said LendingClub CEO Scott Sanborn. “With credit card debt and interest rates at historic highs, the need for better tools and solutions has never been greater, and so we’re excited to accelerate our innovation in this area.”
For its part, Pagaya said the purchase helps it bolster its consumer lending technology solution for the financial ecosystem, as it can now provide advanced credit management solutions that its lending partners can offer customers under their own brands.
“Integrating and embedding Tally into our B2B offerings significantly enhances the value we provide to our partners through our suite of cutting-edge products,” said Sanjiv Das, president of Pagaya. “We are committed to leveraging Tally’s technology to create tailored solutions that meet the diverse needs of our lending partners and their customers.”
Tally shuttered after not being able to find funding. As PYMNTS wrote at the time, this fact implies that the company needed to mitigate at least some of its cash burn with investor money.
“Investors, who had valued the company recently at about $855 million and had raised a cumulative $172 million, can be a fickle lot,” that report said.
“Crunchbase has noted that funding throughout the financial services industry has been slowing for several quarters. Slowing still implies some growth, and indeed the $9.7 billion raised in the second quarter is up 17% from last year … but in absolute terms, we’re far from the peak of $40 billion raised by these companies in the second quarter of 2021,” the report added.
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