This paper reports on a study that replaced marks with digital badges in an undergraduate Initial Teacher Education course. The aim was to examine the impact of badging on students, and on the quality of university provision. Data collection consisted of surveys and focus groups. The study found that while digital badges had considerable potential to improve the student experience in terms of engagement with feedback, motivation and reducing 'grade anxiety', delaying the awarding of marks caused significant student anxiety. The effect on university provision was more positive, and digital badges promoted constructive alignment between university-based assessment tasks and external professional standards frameworks. The student findings pointed to an underlying tension associated with implementing student-centred, outcomes-based assessment methods in contexts designed to accommodate traditional high-stakes assessment. Five recommendations for future practice were made: (1) Remove marks altogether where digital badges are used; (2) Do not substitute written feedback with digital badges; (3) Developing a badge framework is important for both students and staff; (4) Inform students about what to expect; (5) Develop a 'Badge Tree'.