Fintech closures, Klarna’s entry into the banking sector and companies hiring

Welcome to TechCrunch Fintech! This week we take a look at the demise of Tally and Score respectively, in addition to examining Klarna’s latest business move. We even have an inventory of fintech companies seeking to add staff.

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Big story

Last week I informed about TallyThe 9-year-old fintech company that helped consumers manage and repay bank card debt has closed its doors after failing to secure more capital. After raising $172 million from investors like Andreessen Horowitz and Kleiner Perkins, the news got here as a shock to the fintech community. We don’t really know what exactly led to Tally’s demise, although some speculate that it was partly attributable to high rates of interest, nevertheless it’s sad news regardless. CEO and co-founder Jason Brown told me, “This decision was incredibly difficult, but I’m proud of what Tally has accomplished over the years. … While Tally’s journey is coming to an end, the quest to help people manage their debt more effectively continues, and I hope others will build on what we started.”

Also last week Dominic-Madori Davis reported that Resultdating app for individuals with good or excellent credit, closed in early August. Overall, startup closures have increased significantly this 12 months, based on multiple sources, including Card and dismissals.fyi.

Analysis of the week

Swedish fintech giant Clara announced last week that it was expanding into banking. The company started off as a buy now, pay later provider and has regularly expanded its offering over the years. Klarna is now offering a brand new “balance” account and the ability to earn cashback on purchases made through its app. While U.S. users can’t yet earn interest on money held in the account, European users can earn as much as 3.58%. The move puts Klarna in competition with other fintech firms corresponding to Revolut, in addition to the likes of Bank of America and JPMorgan Chase. It comes just months after the company launched a bank card in the U.S.

Dollars and Cents

As predicted, Revolut confirmed a brand new valuation of $45 billion through the sale of shares on the secondary market, making it one among the most respected private technology companies in Europe.

PayZenwhich goals to make healthcare cheaper by allowing patients to pay their bills in installments without interest or fees over time, closed a $32 million Series B funding round led by NEA.

TipRank rankingswhich uses artificial intelligence and other analytics to create data sets and other insights that help people make smarter stock decisions, was acquired for $200 million by Prytek, an organization that develops business process products for financial services, human resources and other enterprise sectors.

What else can we write?

I recently released connection asking about fintech companies that were hiring. In a little bit over an hour, I had greater than a dozen responses. In just a couple of days, I heard from dozens more. The sheer number — and quality — of responses surprised even me, someone who commonly writes about this space. We plan to update the hiring post commonly, so check back often!

In the face of accelerating pressure from regulatory authorities, Apple On Aug. 14, it announced it was opening up NFC transactions to third-party developers. NFC, or near-field communication, is the short-range wireless technology that powers Apple Pay and Wallet. The tech giant also said it generated a record $24.2 billion revenue from the services unit, including payments, in the second quarter.

High-interest headlines

Citi, Wells Fargo Team Up on $31 Million Funding Round for Lending Startup Setpoint

Tencent-backed Airwallex hits $500 million in annual sales, goals to organize for IPO by 2026

Sling Money raises $15 million for money transfer app

Banking technology startup Amount raises $30 million

Podcast listens

Listen to the Equity podcast where the team breaks down each closure Tally AND Result Here.

What’s the right solution to construct a software business? Many startup advisors say that B2B software should solve one problem, acquire customers, and then add features as the business grows. Serial founder Parker Conrad, now founder and CEO RipplingThe HR/payroll software startup, valued at $13.5 billion in April, thinks that’s the mistaken solution to do it. Conrad said on a recent episode of TechCrunch’s Found podcast that he thinks the advice given to software company founders over the past 20 years has been mistaken.