Building repayment, balance transfer, and bill payment functionality into fintech apps can be a headache for developers. Many rely on fragile screen-scraping APIs or outdated tools that involve processing physical checks and paperwork, adding complexity to an already challenging task.
That’s where Method comes in. Founded by Jose Bethancourt, Marco del Carmen, and Mit Shah, the Austin-based startup is helping fintech companies, including SoFi, streamline debt and repayment features in their apps. The platform, which emerged from stealth in 2021, leverages identity verification data and banking system integrations to aggregate users’ debts and execute transactions like bill payments and balance transfers on their behalf.
“Jose and Marco experienced firsthand the challenges of financial account connectivity while building their first company, GradJoy, a Y Combinator-backed startup,” Shah explained. “They quickly realized existing systems couldn’t meet their needs, leading us to create Method.”
Method uses consumer credit access protections from the 2010 Dodd-Frank Act, allowing fintech developers to integrate its API into their apps. Users simply provide their phone numbers to enable the functionality, eliminating the need to repeatedly authenticate credentials. According to Shah, this approach reduces friction for users and enhances engagement for Method’s partners.
Since its launch, Method has connected over 30 million accounts for 4 million users, facilitating more than $500 million in liability repayments. It counts SoFi, Bilt, and Happy Money among its customers, providing a seamless way for them to improve user experiences while increasing conversions.
While handling sensitive data, Method claims to prioritize privacy. Shah emphasized that the platform collects minimal user information and refrains from selling data to third parties. A planned user portal will also allow individuals to manage the data shared with Method’s clients.
Method’s competitors include Plaid, MX, and Dwolla, but Shah argues that its system offers a key advantage: users don’t need to re-authenticate multiple accounts. Recently, Method expanded into credit card functionality, powering tools like Bilt’s card-linking feature. The company also plans to integrate retail and travel card networks, aiming to simplify the checkout process for merchants and shoppers.
To support these efforts, Method recently closed a $41.5 million Series B funding round led by Emergence Capital, bringing its total funding to around $60 million. With a 35-member team, the company is set to deepen its banking relationships and further enhance its product offerings.
Featured image courtesy of TechCrunch
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