Yahoo Finance has forayed into social payments space with launch of new app called Tanda that can be used by a small group of individuals to save money together for short periods.
Based on the concept of ‘money-pool’, Tanda requires every member of the group to contribute a fixed and agreed amount to the group’s savings pot every month.
Every month, one member of the group gets the opportunity to take the full pot. The new app aims to help the contributing individuals to achieve their short term financial goals.
Tanda also assigns a trust score to every user as they start making contribution. The score improves over time based on the performance of the user.
Higher scores will enable the users to gain access to higher value savings circles as well as earlier payout positions.
If any member of the group stops paying their contribution, Tanda will step in to cover their positions but in turn will take 8% of the first payout and 7% of the second payout.
Yahoo has also partnered with Dwolla to offer ID verification and funds transfer from user bank accounts for Tanda payouts.
Released under the Yahoo Finance brand, the new app is available in English and Spanish for Android devices. The iOS version of Tanda app is expected to be launched soon.