Digit’s savings service calculates an optimized amount of money to set aside every day — based on each customers’ income and spending — and automatically saves it to help customers meet financial goals, whether that is a credit card payment, an emergency fund or a vacation.
The company’s new service, Digit Pay, lets customers make automatic payments toward their credit cards with money saved in Digit. When a customer creates a goal to pay down credit card debt on Digit, Digit will periodically move money from that customer’s checking account towards that goal, based on what they can afford. Once a month, Digit Pay automatically makes an extra payment to the customer’s credit card with the money that has been saved. Customers can go on living their lives, knowing Digit is chipping away at their debt in the background.
Digit operates the entire flow of funds for Digit Pay using Open Platform’s APIs
Digit operates the entire flow of funds for Digit Pay using Open Platform’s APIs. Through Open Platform, the company set up a FBO (pooled) account at BBVA Compass to hold funds in its customers’ names. Digit uses Open Platform’s Move Money API for the rest. The company can automatically initiate ACH transactions that move saved funds from its customers’ external bank accounts into a FBO (pooled) account at BBVA Compass.
Digit then uses Open Platform’s digital bill payment directory and digital bill payment service, so that customers can use the funds they have saved to pay credit card bills. Payments made using Digit Pay typically post to a customer’s credit card within two to five business days.
For several years, Digit operated its very successful, closed-loop savings service with another bank provider. To allow its customers to use saved funds to pay their credit card bills, Digit realized it would need to add a new banking provider. Digit found a unique solution in BBVA Open Platform. Rather than taking on the time, cost and complexity of integrating with multiple bank providers and payments providers to enable its services, Digit leveraged Open Platform’s ability to run all pieces of its Digit Pay payment flow on one, unified, fully compliant platform.
Digit leveraged Open Platform’s ability to run all pieces of its Digit Pay payment flow on one, unified, fully compliant platform
During a pilot program, Open Platform’s Client Integration Team met with Digit once a week and communicated constantly via a dedicated chat channel to help Digit answer questions and resolve challenges in real time. Today, Digit is out of pilot and Digit Pay is available to all of its customers.
Working with Open Platform has allowed Digit to enhance its relationship with its customers and grow its business in a way that was easy to implement and scale, according to Samar Shah, Product Manager at Digit. “BBVA Open Platform’s intuitively designed APIs are enabling us to expand the ways in which Digit improves our customers’ financial lives,” he said.
“BBVA Open Platform’s intuitively designed APIs are enabling us to expand the ways in which Digit improves our customers’ financial lives.”
—Samar Shah, Product Manager, Digit
We’re thrilled to be taking our relationship with Digit to the next level and helping to bring Digit Pay to the world. If you’d like to find out how Open Platform’s APIs could help your company, do get in touch. We’d love to answer any questions you may have.
–Open Platform Team