A method, implemented by a financial institution computing system, for providing a loan for a purchase transaction between a customer device and a merchant device of a merchant, the financial institution computing system, the customer device, and the merchant device being in communication over a network, the method comprising:
- receiving, by the financial institution computing system over the network from a software application executing on the customer device, a loan application for the loan for the purchase transaction between the customer device and the merchant device;
- generating, by the financial institution computing system, a plurality of loan terms for the loan application based on information in the loan application;
- generating, by the financial institution computing system, a plurality of digital loan term tokens, each of the plurality of digital loan term tokens generated based on a respective one of the plurality of loan terms;
- transmitting, by the financial institution computing system over the network to the customer device, the plurality of digital loan term tokens responsive to the loan application;
- receiving, by the financial institution computing system over the network from the merchant device, a copy of a transaction package comprising a selection of at least one of the plurality of digital loan term tokens provided to the merchant device from the customer device, the selection made via the software application executing on the customer device, wherein the copy of the selection of the at least one of the plurality of digital loan term tokens securely represents a method of payment, a payment interval, and a purchase price for the purchase transaction between the customer device and the merchant device, the transaction package comprising a plurality of tokens for a plurality of payment sources associated with the customer device for a down payment;
- interpreting, by the financial institution computing system, based on comparing each token in the transaction package with corresponding token records in a token database of the financial institution computing system, the selection of the at least one of the plurality of digital loan term tokens and the plurality of tokens for the plurality of payment sources associated with the customer device for the down payment;
- debiting, by the financial institution computing system, the plurality of payment sources for the down payment;
- responsive to debiting the plurality of payment sources for the down payment, crediting, by the financial institution computing system over the network, an account of the merchant according to the purchase price;
- setting up, by the financial institution computing system, the loan in an account database of the financial institution computing system;
- and
- automatically configuring, by the financial institution computing system, an auto-pay function and automatically periodically withdrawing, by the financial institution computing system, using the auto-pay function, loan payments from a customer payment account corresponding to the method of payment according to the payment interval selected using the software application.