Yahoo Finance is moving into the social payments space with Tanda, a new app that creates savings circles which friends, family and strangers can join to meet short-term financial goals.
Tanda offers a modern spin on informal loan clubs typically used in migrant circles. Members join a circle of between five and nine people. Each circle member periodically contributes a set amount into a shared pool with one member then taking the full amount. The process repeats over time — each member chips in, one member then takes it all — until everyone gets a full payout.
Tanda assigns each user a trust score, which can be built up over time. The higher the trust score, the more options members have for joining savings circles and choosing payout positions. Typically users must build up their trust score before they can take the first or second position in a savings circle.
If another circle member stops contributing, Tanda steps in and makes up the shortfall.
In return, Yahoo Finance takes an eight percent chunk of the first payout and a seven percent cut of the second payout.
Yahoo has teamed with Dwolla to provide ID verification and funds transfer from user bank accounts for Tanda payouts.