Split rent payment platform Zenbase is teaming up with real estate investment company Avenue Living Communities to offer its flexible payments service to the company’s 14,000-plus apartments and townhouses in Alberta, Manitoba and Saskatchewan, Canada, according to a joint press release.
The service allows residents to pay their rents on a schedule that better suits their income cycles, the press release said.
“We’re always looking for ways to address what’s most important to our residents,” said Anthony Giuffre, founder and CEO of Avenue Living Group, in the joint press release. “We know how important the social aspect of our Environmental, Social, and Corporate Governance commitments are, and we’re continuing to support our residents with compassionate options to help address their day-to-day challenges.”
Koray Can Oztekin, CEO and founder of Zenbase, agreed with Giuffre in the release.
“Our company partners with like-minded property management organizations who want to improve the financial health of their residents while at the same time increase on-time rent collections and eliminate operational overhead,” he said. “ALC has fully leveraged the benefit of our solution, delivering financial relief and flexibility to thousands of Canadian renters.”
Zenbase has benefits for property owners, who get guaranteed rent payments and less time spent on collecting overdue bills. ALC is the fastest growing multi-family housing owner-operator in western Canada and the deal could reduce late rent payments by more than 27%, the press release said.
Related: BNPL Rethinks Model as Trying Times Strain Customers’ Wallets
Splitit CEO Nandan Sheth told PYMNTS’ Karen Webster earlier this month that, while paying over time will always be popular, the current economics of the pure-play model just don’t make sense. He suspects consumers will begin to see differences in the terms they are offered when applying for credit and a tightening of underwriting standards that could limit their capacity to lend, even to those who were extended pay-in-three or pay-in-four options in the past.
The buy now, pay later (BNPL) market, said Sheth, is due for a sharp course correction, maybe within the next 12 months. Sheth contended that many of the BNPL pure-plays with millions of customers might see their user bases look to banks and other financial service providers for the installment programs that are the appeal of the BNPL proposition.
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