Fintech company Novatti Group (ASX: NOV) has formalised an agreement to commence re-development of rental payments platform RentPay, in collaboration with Rent.com.au (ASX: RNT), Australia’s leading website dedicated to the rental property market.
The partnership provides Rent.com.au with access to Novatti’s award-winning payment processing technology with Novatti gaining access to the rental payments market.
“Novatti brings a level of knowledge and scale that we lack, and with the potential for them to be granted a banking licence in the near future, the partnership introduces a further range of product possibilities that can be introduced once we’ve relaunched RentPay later in FY2020,” said Rent.com.au CEO, Greg Bader.
“This is just the type of partnership that we need to develop RentPay into a key product in the rental market in Australia.
“We have consistently said that we want to seize the massive opportunity that the tenancy period presents to us, and it is exhilarating to see our ambition starting to become a reality and we look forward to continuing our rapid progress towards relaunching RentPay.”
The collaboration will see Rent.com.au pay Novatti an initial $250,000 for access to the payment processing technology, which Novatti will re-invest in RentPay for a 2.5% stake in the ‘next generation’ rental payments platform.
Beyond the initial investment, the 3-year SaaS agreement will involve Novatti building and operating the backend of the platform whilst Rent.com.au focuses on marketing, user experience and renter engagement.
“We’re enjoying working with the team at Rent.com.au and are impressed with the passion and knowledge they bring to RentPay,” said Novatti CEO, Peter Cook.
“Partnering with Rent.com.au to redevelop RentPay is a great example of providing products that allow customers to thrive in today’s increasingly cashless economy, while also providing Novatti with exposure to the enormous rental payments market.”
This investment in RentPay is part of Novatti’s growth strategy to leverage its payment processing technology to invest in innovative fintech opportunities, similar to its digital bank which is awaiting approval from regulators for the launch for the new neobank service.
Novatti reported record revenues for the half year ending 31 December 2019 with organic growth from its international payments processing business.