In an unprecedented step for the property management industry, expense management firm PayLease has announced a new strategic partnership with digital transaction provider PayPal. In the coming months, rental property residents who use PayLease systems to pay rent and other housing expenses will be able to make their payments with a PayPal account in lieu of a credit card or check.
PayLease will introduce its PayPal service to a limited number of users, on a first-come, first-serve basis, and then expand the option to all PayLease clients. Residents will be able to integrate their PayPal information into PayLease by logging into either PayLease.com or their property management company’s website, choosing PayPal as their payment method and entering their PayPal login credentials.
The Perks of 'Digitally Native' Payments
“One of the pain points we hear from our customers is that it still isn’t easy to pay for rent,” writes Steve Fusco, vice president and general manager, North American distribution, for PayPal, in a blog post about the partnership. According to Bloomberg, over 70% of renters still pay by check—something that doesn't come naturally to young, tech-savvy residents. “They’ve never had to write a check,” Fusco says. “They're used to paying for things online and digitally.”
Credit cards are an increasingly common rent payment method, but they’re still a bit too low-tech. According to a research study of millennial credit habits conducted by PayPal in August 2015, 63% of millennial renters surveyed didn't have a physical credit card, and over 70% believed credit cards weren't secure. At the same time, out of the 4.9 billion payments PayPal processed from 188 million active accounts in 2015, 28% were made from a mobile device.
“Millennials want credit that is as digitally native as they are,” the study says and offers Paypal's online credit service as a tech-friendly alternative.
Advantages for Renters and Managers
The advantages of a wider variety of native payment methods for property residents are clear, but PayPal’s online pay options are also poised to boost online payment utilization. This allows property managers faster funding time and a smoother collection process. Within the next few weeks, property managers will be able to settle funds collected via PayPal into non-PayPal accounts.
“We’re excited to provide more choice in payment options to our property management clients and to residents living in their communities,” says PayLease CEO Dave Dutch. “With the peace of mind behind PayPal’s promise of secure transactions, we are making payments easy for millions of people in the rental market.”
“At PayPal, we build technology to make payments simple and secure for hundreds of millions of people all over the world,” Fusco says. “PayLease shares this passion and has been transforming the experience for property management companies and [homeowner associations]. We're excited to partner with PayLease in shaping the future of what’s possible in property management.”