Method

Method offers an API-based infrastructure platform for FinTech developers to embed loan repayments, balance transfers, and bill pay automation. Accordingly, the platform can be used to develop lending solutions by enabling lenders to access the users’ debts. By leveraging debt information and embedding repayments, Method can also be used to build HR and benefits as well as personal finance solutions.

The platform connects identity verification data from credit bureaus and wireless carriers, with data from financial institutions, to enable lenders to access users’ existing liability data (student loans, credit cards, mortgages, etc.) through their phone numbers. Method reportedly collates liability data from over 60,000 institutions across the US (as of January 2023). However, Method has plans (as of January 2023) to launch a portal for end users, enabling them to manage the data they share with apps and services.

The company also noted that it handles the money movement process end-to-end in the event of consumer bills and debt payments. In addition, Method also embeds compliance solutions such as know-your-customer (KYC) and anti-money laundering (AML) verifications, along with instant account validation and payment confirmations.

Method claims users can build solutions in 24 hours and offers its solutions under pay-per-use and subscription models. Packages vary based on several factors such as the number of debt repayments, financial institution integrations, account number requirements, and bank statements, among others.

Key customers and partnerships

Method reportedly has 45 customers and over 100,000 end users (as of January 2023), including banks, credit unions, and personal finance management apps.

Funding and financials

The company’s annual recurring revenue (ARR) reportedly amounted to around USD 2.3 million, as of January 2023. At that point in time, the platform connected over USD 2 billion in consumer debt and processed more than USD 50 million in payments.

The company raised USD 16 million in Series A funding in January 2023 led by Andreessen Horowitz to invest in product development and recruitment. Proposed product developments include real-time credit card transactions, instant balance transfers, and live data points for liabilities. Along with the funding, Method also announced the private beta launch of “Transaction API” and “Instant Payments.”