Flexible rent payment platform Xspaced launched its digital bank accounts for tenants today. The bank accounts enable Xspaced’s FlexRent product, a tool that helps tenants split their rent payment into two to three installments over the course of a month.
Today’s launch offers Xspaced an important distinction in the online rental payments space– it doesn’t require landlords to register. Instead, tenants can use the virtual bank account independently and landlords can continue using their preferred online rent collection platform.
“Since launching FlexRent last year, we’ve continuously heard from tenants that they would like to have more flexibility when it comes to paying rent and from landlords that they want to keep their current rent collection system,” said Xspaced Cofounder Alex Pelin. “Tenants can save money towards their next rent payment via smaller payments over the month, landlords can keep collecting rent on their preferred payment portal – it’s a win / win for everyone!”
Aimed at gig workers and others with inconsistent income, FlexRent connects to users’ existing bank accounts. Xspaced sends tenants automated payment reminders to help them save money for their upcoming rent payment two to three times each month. At the beginning of the following month they can used the money they saved to pay their landlord using their landlord’s online rental collection platform.
Modern payments platform Dwolla is powering the money movement piece of FlexRent. “Making expense management simpler for anyone on a variable income has been a challenge for a long time,” said Dwolla CEO Brady Harris. “With Virtual Account Numbers, Xspaced is helping make rent easier by helping tenants align their rent payments with their income schedule. We’re proud to power part of their solution.”
The utility of Xspaced’s new virtual bank account offering seems inflated. FlexRent simply sends a reminder to users to send their rent payment and serves as an account to hold the payment. It is the renter’s responsibility to transfer the funds to the Xspaced account and to pay their landlord using the funds held in the Xspaced account.
This is not much value in exchange for the cost, which ranges from $2.99 per month for two payment installments to $5.99 per month for three or four payment installments. The FlexRent account requires users to have a bank account already, so renters may as well open a savings account at their bank to which they can set up multiple automatic transfers.
That said, Xspaced must offer at least some value, because the California-based company boasts that, “thousands of renters love Xspaced.”
Photo by Bench Accounting on Unsplash
The post Xspaced Launches Virtual Bank Accounts for Renters appeared first on Finovate.
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Source: https://finovate.com/xspaced-launches-virtual-bank-accounts-for-renters/
