Why the Rent.com.au (ASX:RNT) share price jumped 14% this morning

The Rent.com.au Ltd (ASX: RNT) share price was flying in early trade after the company launched its RentPay platform – let's take a look.

| More on:
rising asx share price represented by woman jumping in the air happily

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

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.

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.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, Mastercard, and Visa and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Mastercard. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A frustrated male investor frowns with his hands and arms open asking why the share price has dropped today.
Technology Shares

Why this high-flying ASX 200 tech stock just got downgraded

Let's see which stock has been hit with a downgrade today.

Read more »

Delighted adult man, working on a company slogan, on his laptop.
Technology Shares

Up 10% in a day, why this ASX tech share is exciting investors

It’s been a good start to the week for this company’s shareholders.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Technology Shares

Which ASX 200 tech stock is jumping 8% to record high?

This high-flying stock had another strong quarter.

Read more »

A businessman leaps in the air outside a city building in the CBD.
Technology Shares

Guess which ASX 300 stock is jumping 13% on guidance upgrade

A profit upgrade has gone down well with investors today.

Read more »

drone technology, drone defence, woman operating drone
Technology Shares

DroneShield shares rocket 11% to record high on big news

Let's see what this high-flying stock has announced this morning.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Technology Shares

Here are 2 exciting ASX shares rated as buys

These shares are highly rated by brokers. Let's find out why.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
Technology Shares

Is this the decade of the data centre? One ASX 200 stock that could benefit

Let's see why one leading broker thinks this stock could be destined for big things.

Read more »

A human-like robot checks out market performance on a laptop, indicating the rise of AI shares.
Technology Shares

3 top performing ASX AI shares for your watchlist

Have you positioned your portfolio to capitalise on the next tech revolution?

Read more »