Fintech companies Tally and Score have recently ceased operations, leaving thousands of users seeking alternatives. Tally, which offered credit card debt management solutions, abruptly discontinued its services following unsuccessful funding rounds. Score, a dating app for high credit score individuals, struggled to keep pace with rapidly evolving technology and user expectations.
Speculation around Tally’s shutdown implies high interest rates and undisclosed operation issues may be to blame. The closure of both Tally and Score represent a continuing trend of struggling start-ups reaching their end. Questions about the sustainability and viability of smaller fintech companies in a competitive and rapidly changing market are now more pertinent than ever.
In contrast, Swedish fintech juggernaut Klarna is venturing into the banking sector. This move represents the expansion of its ‘buy now, pay later’ platform into wider services.
Fintech’s contrasting fortunes: Closures and Expansion
The new services offered include cash rewards for Klarna app purchases, savings accounts for German customers, and potentially interest earnings of up to 3.58% for European users.
Klarna’s diversification could pose considerable competition for fintech companies like Revolut as well as traditional banks like Bank of America and JPMorgan Chase. This expansion strategy suggests that Klarna is keen on capturing a share of retail banking around the globe. A successful entry into the U.S market had laid a solid foundation for Klarna, with millions of active consumers and partnering with top retailers.
Despite market uncertainties, job prospects in the fintech sector are optimistic with many companies actively hiring. A recent study revealed a significant increase in fintech job postings, suggesting a rising demand for talent with financial and technology skills. While fintech involves financial and technological expertise, it also demands an understanding of regulations, customer experience, and digital disruption.
Last but not least, Apple is extending access to their near-field communication (NFC) technology to external developers. NFC is an essential mechanism for Apple Pay and Wallet, and this move is expected to generate an increase in earnings for Apple’s services division, especially its payment systems, in the upcoming quarter.