- Rent.com.au (RNT) has teamed up with the leading bank and payment company, Novatti Group (NOV) to create Rentpay
- Rentpay is an app to help tenants pay their rent wherever they are, track history and set up reminders
- Under the agreement, Novatii will purchase a 2.5 per cent stake in Rent’s subsidiary, Rentpay Technology, for $250,000.
- It will have an option to increase its stake to 10 per cent for a further $750,000
- Both companies are up on the market this morning, as Rent is up 10 per cent, trading at 5.5¢ apiece, while Novatii is up 8.33 per cent, trading at 20¢ apiece
Rent.com.au (RNT) has teamed up with the leading bank and payment company, Novatti Group (NOV) to create Rentpay.
Rentpay is an app that helps tenants pay their rent wherever they are. It also allows users to track their payments, history and set up reminders.
The companies have agreed to a Software as a Service agreement, where Novatii will develop and integrate its payment technology.
Under the agreement, Novatii will purchase a 2.5 per cent stake in Rent’s subsidiary, Rentpay Technology, for $250,000. It will have an option to increase its stake to 10 per cent, for a further $750,000.
Rent.com.au is Australia’s number one website dedicated to rental properties. The company said the idea for Rentpay came as it talked to its customers to see what they need and want.
CEO of Rent, Greg Bader is pleased with the agreement with Novatii as they bring skills to the partnership, along with significant benefits.
“High-volume payment and transaction handling is not a core competency of Rent.com.au’s so it makes sense to partner with someone like Novatti who has proven itself to be a leader in payments technology and has developed innovative solutions to unlock opportunities in a variety of industries,” Greg explained.
“They also bring to the table other unique capabilities, a great example of this is how they handle Alipay and WeChat pay transactions in Australia. Customers are already telling us they want to be able to choose from a variety of payment options including these emerging technologies,” he added.
The rental payments industry is worth $60 billion per year.
Novatti CEO Peter Cook agrees with Greg and believes this is a great partnership that will benefit both companies.
“We are taking an ownership position in RentPay because we see the value in RentPay and its potential to positively impact the market,” he said.
“We also believe we have much to offer as RentPay continues to evolve and look forward to working closely with the Rent.com.au team as we move forward,” he told the market.
Both companies are up on the market this morning, as Rent is up 10 per cent, trading at 5.5¢ apiece, while Novatii is up 8.33 per cent, trading at 20¢ apiece at 11:08 am AEST.