In an era where customers are seeking alternative payment methods, the $60 billion rental payments industry is set for change with Australia’s top rental website Rent.com.au (ASX: RNT) to develop innovative rental platform, RentPay, in conjunction with fintech company Novatti Group (ASX: NOV).
Defined by rent.com.au as a “next generation” rental payments solution, RentPay will be redeveloped to strengthen user experiences, strengthen rental engagement and streamline marketing, payments and legal compliance processes.
Novatti will supply key payment processing technology similar to that which is used to integrate payment options with Alipay and WeChat Pay.
“RentPay is the key to us unlocking the sizable opportunity presented by extending our services and influence into the tenancy period,” said Rent.com.au CEO, Greg Bader.
“We have talked to our customers to understand what they need and want, developed the concept and commenced building the new RentPay. Now is the time to secure the key partnerships that will see RentPay become a key product in the rental market in Australia.”
Under terms of the agreement, Novatti will acquire a 2.5% stake in RentPay for $250,000 which will be paid via services provided to RentPay, with an option to increase their stake to 10% for an additional $750,000 within 12 months.
This gives RentPay a pre-money valuation of $10 million.
“Rental payments are a $60 billion per year industry that is ripe for transformation. To effectively seize this opportunity, we see value in partnering with competent, likeminded organisations such as Novatti. It is important to us that they have some ‘skin in the game’ as it means we will be innovating and unlocking the value together,” said Bader.
With more than 600,000 unique visitors per month to their website and app, Rent.comau offers a range of products and services to make the renting process easier for renters and landlords. Using the new RentPay platform, agents and landlords will have flexible access to make and track payments, set reminders, choose new ways to pay and a host of other features under development
In their latest quarterly report, Novatti reported record revenues from their payments business whilst the company is also expecting to be granted a banking licence in early-2020 which will lead to the launch of their already funded digital banking service.
“Through its innovative technology, Novatti positions its customers to thrive in the growing cashless economy. Partnering with Rent.com.au to redevelop RentPay is a great example of this, while also providing Novatti with exposure to the enormous rental payments market,” said Novatti CEO, Peter Cook.
“We believe we have much to offer as RentPay evolves and look forward to working closely with the Rent.com.au team as we move forward.’