With this collaboration, the Berlin-based vertical payment platform for real estate and the German bank provide an alternative to the traditional cash deposit, the companies said in a Thursday (March 2) press release.
“With almost 30 billion euros tied up in traditional cash deposits in Germany alone and more than 70 billion euros in Europe, we see huge potential in the residential market,” VVRB CEO Ralf Magerkurth said in the release. “Through a seamless onboarding process triggered by the landlord through the Getmomo platform, we see this traditional industry at a turning point.”
The guarantee offered by the partnership of Getmomo and VVRB relieves new tenants of the need to pay a cash deposit when moving in and enables existing tenants to swap the cash deposit they have already paid to put it toward unexpected costs like the higher heating bills being seen in the country, according to the press release.
For professional landlords, the partnership provides a safeguard against tenant defaults, the release said.
“With this new partnership, we can continue our growth and build the leading vertical payment solution in the European real estate market,” Getmomo Founder Marcel Meitza said in the release. “We look forward to working with VVRB and further expanding the business.”
PYMNTS research has found that when it comes to something as vital for future growth as payments in the property management space, “if it ain’t broke, don’t fix it” may not be the best business strategy.
Relying on outdated systems has clear drawbacks, according to “Money Mobility Helps Property Managers in a Difficult Economy,” a PYMNTS and Ingo Money collaboration.
For example, the friction-filled practice of paper checks still holds sway in the sector, and a significant portion of residential and commercial rents are still paid by this method, the report said.
“Additionally, the checks we do still receive are more easily applied to the proper accounts because we can search name, address and unit number depending on the check,” Carrier said. “This has been a great time saver.”