Navigating today’s rental landscape in Australia can be challenging and expensive. With soaring rental costs and the broader impact of the cost of living crisis impacting consumers, tenants are demanding more flexibility and control in how they pay their rent.
Recognising the growing demand for diverse payment options, especially among international renters, Novatti has joined forces with RentPay. RentPay is an app designed to provide greater flexibility to renters about how and when they pay their rent.
This collaboration provides RentPay users with access to a wider range of payment options, adding Asian Wallets to the traditional mix, such as WeChat Pay, Alipay and Unionpay along with traditional methods like credit and debit cards.
Escalating rental costs and plummeting vacancy rates adds pressure to tenants
Escalating costs and dwindling vacancy rates are increasing the pressure on renters. Corelogic’s latest market report showed that rents across Australia had risen by 8.3% in 2023 and this year is looking like more of the same, vacancy rates are also at near record lows with less than 50,000 properties listed nationally.
According to the the RBA there are a number of reasons for these unusual conditions, including:
– a shift towards smaller households, resulting in a structural shortfall of 120,000 homes
– a decline in residential project commencements, which fell by 12% quarter-on-quarter in the June quarter.
– Australia’s ageing population, characterised by an increasing number of empty nesters opting to remain in large family homes
– And increases in migration numbers
Budgeting battles: Consumers tighten belts to tackle essential expenses
As rent costs have risen so have other expenses and this is impacting consumer behaviour, with people spending less on discretionary goods and instead redirecting those savings to household expenses like, utility bills, fuel and mortgage/rent payments.
According to a recent survey from CommBank, consumers indicated that on average they are redirecting an average of $450 a month, largely towards essential goods and services, such as rent, or to their savings, perhaps to create a buffer.
Particularly as people tighten their belts there’s a growing demand for smarter ways to manage money, especially when it comes to rent payments, which typically consume a significant portion of individuals’ income.
Demand for innovation and control
The CommBank Consumer Insights research also suggested that an overwhelming 84% of consumers believe having a wide range of payment options, is either a nice to have or a must have. The report further underscores this sentiment, particularly among Generation Z consumers, with ‘40% stating that payment optionality is non-negotiable.’
But it’s not just Australian tenants that want other ways to pay. In fact international renters, particularly those from China that are much more accustomed to using non-traditional western payment methods such as Alipay, WeChat pay and Union Pay and want to continue to pay using methods they trust and are used to.
CEO, Greg Bader, RentPay commented. “Consumers from across the globe crave seamless and convenient ways to manage their rental payments – especially with the financial pressures many of us are facing. That’s why we’re committed to offering a diverse range of payment options that cater to modern consumer experiences. Last year over 510,000 international migrants arrived in Australia and it’s vital to us that we make the rental payment process simple and convenient for everyone. We’ve been delighted to work with Novatti to offer Asian wallet payments to our international users and provide them with greater convenience.”
Offering flexibility and control in RentPayments
Mark Healy, CEO Novatti emphasised, “We’re thrilled to facilitate RentPay users’ access to their Asian Wallets, adding even more value to their experience.”
By providing innovative payment solutions for our customers, we empower them to gain a competitive advantage and truly delight their consumers. It’s been a pleasure collaborating with RentPay to provide them with even more ways to increase customer satisfaction through payments. At Novatti, we know providing payment options like Alipay, WeChat Pay and Union Pay international leaves a lasting positive impression on International consumers and drives revenue growth.
If you’d like to talk to our team of experts about how we can help provide access to asian wallets to your customers or how we can help you increase your revenue via payment solutions click here.
