Shares in Rent.com.au Ltd (ASX: RNT) were flying out the door this morning after the company announced the launch of its RentPay platform. In early trade, the Rent.com.au share price jumped 13.64% to 25 cents before giving back all those gains.
At the time of writing, the company's shares are trading at 22 cents apiece, flat for the day so far.
Rent.com.au states that RentPay gives tenants easy access to their payment history, flexible payment solutions and can help to build a positive credit score.
Let's take a close look at the rental property website's newest addition.
Image source: Getty Images
What is RentPay?
The Rent.com.au share price received a temporary boost this morning after the company officially launched its RentPay platform to the public. RentPay enables renters to pay their landlords using the app.
Users deposit their rent into the app, which will store it in an Australia and New Zealand Banking Group (ASX: ANZ) account. RentPay will then transfer the funds to a landlord or rental agency.
The platform is customer-led, which means landlords or agents don't need to have the app installed in order for their tenants to pay through it. RentPay is compatible with BPAY, Visa, Mastercard, direct debit and more.
According to the company, RentPay provides Rent.com.au with an entry point into the market beyond the signing of a rental agreement, extending customer relationships into the tenancy period. The company's aim is that this will expand its revenue from one-off payments to recurring payments.
Rent.com.au also states that its newly released platform allows for tenants to have more flexible payment schedules. Tenants can put their rental payments into the app whenever it suits them – such as on the day they're paid. They can then set the app to transfer the funds at a designated time in the future.
Tenants can also deposit more than the cost of their rent into the app, using it as a savings account for future rental payments. Rent.com.au says it plans to provide an investment return on money held in the app in the future.
The platform is now available as an app via both Apple and Google Play.
To use RentPay, tenants will be charged a one-off $3 fee, then $2 each month thereafter.
Additional features
In today's release, Rent.com.au highlighted the additional features offered by RentPay beyond rent payments.
The platform has a feature called ScoreBuilder that, if activated, will allow Rent.com.au to send a tenant's rental history to Equifax, one of Australia's largest credit reporting agencies. The company says, over time, this could have a positive impact on a tenant's credit score. RentPay charges $3 to set up a tenant's account with ScoreBuilder, then an ongoing $1 monthly fee.
Further, RentPay has a SafteyNet feature, which works like a buy now, pay later service for rent. Using credit from SkyCredit, RentPay will provide tenants with a short-term loan if they are unable to meet their rental payments. Tenants who use the feature will pay their rent back in 4 equal fortnightly payments, each incurring a $4 fee.
Rent.com.au share price snapshot
Today's gains add to the fantastic performance of Rent.com.au shares on the ASX of late.
Currently, the Rent.com.au share price is up 340% year to date. It's also up 450% over the last 12 months.
The company has a market capitalisation of around $87 million, with approximately 397 million shares outstanding.
