The traditional method of handling rent transactions involved the exchange of cash or checks between landlords and tenants each month, a ritual that often proved inconvenient for both parties. However, as technology advanced, the advent of net banking introduced a more efficient and secure way to transfer funds, marking the initial step toward the adoption of contactless rental payments.
With the convenience of net banking, tenants could effortlessly settle their home rent from the comfort of their homes or offices by creating a Net Banking customer ID and password and utilising a computer.
The introduction of mobile apps, online platforms, and Internet banking’s autopay feature further revolutionised the rent payment experience. Making contactless online payments requires a mobile device and the installation of a dedicated payment app. Configuring the app with one’s bank account empowers users to conduct online payment transactions effortlessly, providing the flexibility to pay rent anytime and anywhere.
In this post, we explore the advantages of this shift, exploring the convenience and financial perks that accompany the rise of contactless online rental payments in India. Let’s start!
Current Payment System for Rental Payments in India
India has witnessed a humongous growth in digital payments in recent years. Digital platforms encouraged online fund transfers and more card usage by introducing several loyalty and customer privilege programs.
These platforms not only helped in e-commerce purchases but also benefited in making online bill payments. That includes online rental payments.
A majority of Indian tenants and landlords readily accepted these contactless online payment modes. Instead of manually collecting or depositing rent, they went online. UPI transactions, card payments, and third-party rental portals replaced cash and check payments. Life is more sorted and convenient with these online rental payment systems.
Disadvantages of the Current Offline Payment System
Rental payments are an important aspect of the real estate business. Timely payment of rent ensures seamless management of the properties. However, the conventional or offline payment system is a lengthy and time-consuming process. Thus, it creates a lot of hassle and confusion between the tenants and landlords.
A few disadvantages of the offline payment system (both landlords and tenants) are as follows:
- The current offline payment system is a lengthy and time-consuming process.
- The chances of the cash or check getting lost or stolen are higher
- A lot of manual tasks are involved, such as:
- Withdrawing cash or issuing a check
- Sending the rent (cash or check) to the landlord in person or by mail
- Depositing the cash or check into the landlord’s account
- Cash and checks must be withdrawn, issued, or deposited at a specific time, which slows the entire process.
Benefits of Contactless Rental Payments
Online payments have simplified the process of paying and receiving rent, thus giving a breather to both landlords and tenants.
Following are a few major benefits of using contactless rental payments:
Convenient and Easy to Use
Online rent payment apps offer the utmost convenience to both landlords and tenants. Handling cash or checks and maintaining manual rent records is a tedious process for landlords. Through online payment portals, paying and receiving rent becomes easy and fast. With such smart rental transactions and user-friendly apps, landlords can efficiently manage several properties.
Similarly, tenants can use online rental payments to simplify and expedite their tasks as well. They can directly pay the rent from any mobile device or laptop. All they have to do is download the service provider app on their device and get it configured using a login ID and password. It eliminates the hassles of cash withdrawals or issuing checks, thus saving enough time.
Optimum Security and Safety
Handling physical cash or checks can be risky for both landlords and tenants. Mishaps can happen anytime and anywhere due to negligence or crime. Online payment portals offer optimum security through dynamic encryption technology. It safeguards sensitive financial data and reduces the risk of fraud.
Usually, when a tenant pays rent online, the money is directly transferred to a specified account, in this case, the landlord’s. This streamlined process minimises the likelihood of mishandling or misdeeds and fosters a reliable and secure environment for both tenants and landlords throughout the entire rental transaction.
Better Financial Management
The payment portals are integrated with features that help record and organise financial records. Contactless payments help landlords streamline payment tracking. They can even generate automated payment histories and reports effortlessly. Besides saving time, it provides a holistic and structured outline of the financial condition of all the properties.
The online payment apps offer recurring payment schedules and 24/7 service. It allows tenants to pay rent at any time from any location, reducing the chances of late payments and plausible disputes with landlords.
Timely and consistent rental payments allow both parties to manage expenses and cash flows in a better way. Landlords can plan property maintenance expenses like paying property taxes and other bills. Whereas, tenants can live a stress-free life by paying timely rents without paying extra money as late payment fees.
Types of Contactless Rental Payments
Paying rent with cash or a check is becoming outdated in this digital era. People are more comfortable using online rent payment modes. Apart from being streamlined, they are faster and simpler options.
Below are some of the popular types of contactless rental payment methods:
Mobile Payment Apps
Mobile payment apps have become the norm these days. They are an omnichannel money transfer source that helps with a gamut of day-to-day financial transaction tasks.
With a quick download and configuration of the app with their respective bank accounts, the entire payment process becomes swift and hassle-free. Instantly paying monthly rent has never been more accessible.
One of the key advantages of employing a mobile payment app lies in its ability to facilitate seamless money transfers on the go, provided the devices are connected. This eliminates the chances of being a payment defaulter, regardless of busy work schedules or any other emergency. Furthermore, they can keep track of all the payments and set a rent reminder for timely payments.
Online Payment Platforms
The digital era marked the advent of contactless or digital payments in different sectors, one of which was real estate. Both tenants and landlords have started adopting various contactless rental payment options to simplify their tasks.
Online rental payment portals like NoBroker, Housing, or CRED are among them. These third-party platforms offer seamless and timely rent-paying options from anywhere and at any time.
Paying rent through online portals is easy and prompt. Users can download an app or visit the website to pay their monthly rent. Also, user details, landlord’s bank details, property details, etc., would be needed. Tenants can use credit cards, debit cards, or UPI payment modes to pay the rent. Quick payment transfers, generating rent receipts, automated rent payments, cashback, and reward points are a few perks of using these platforms.
Contactless Card Payments
Credit and debit cards are the most frequently used payment modes for contactless monetary transactions. The cards are linked to the bank account of the cardholder. To pay the rent, tenants can use any contactless payment portals or apps. Lastly, they must provide their card details to proceed with the transactions. These payments can be made online using a smart device or a laptop.
To use a debit card, tenants must ensure sufficient money is in their bank accounts. In the event of an insufficient balance, they can use a credit card to pay the rent. This will avoid late payment issues and help increase their credit scores.
The traditional method of handling rent transactions involved the exchange of cash or checks between landlords and tenants each month, a ritual that often proved inconvenient for both parties. However, as technology advanced, the advent of net banking introduced a more efficient and secure way to transfer funds, marking the initial step toward the adoption of contactless rental payments.
With the convenience of net banking, tenants could effortlessly settle their home rent from the comfort of their homes or offices by creating a Net Banking customer ID and password and utilising a computer.
The introduction of mobile apps, online platforms, and Internet banking’s autopay feature further revolutionised the rent payment experience. Making contactless online payments requires a mobile device and the installation of a dedicated payment app. Configuring the app with one’s bank account empowers users to conduct online payment transactions effortlessly, providing the flexibility to pay rent anytime and anywhere.
In this post, we explore the advantages of this shift, exploring the convenience and financial perks that accompany the rise of contactless online rental payments in India. Let’s start!
Current Payment System for Rental Payments in India
India has witnessed a humongous growth in digital payments in recent years. Digital platforms encouraged online fund transfers and more card usage by introducing several loyalty and customer privilege programs.
These platforms not only helped in e-commerce purchases but also benefited in making online bill payments. That includes online rental payments.
A majority of Indian tenants and landlords readily accepted these contactless online payment modes. Instead of manually collecting or depositing rent, they went online. UPI transactions, card payments, and third-party rental portals replaced cash and check payments. Life is more sorted and convenient with these online rental payment systems.
Disadvantages of the Current Offline Payment System
Rental payments are an important aspect of the real estate business. Timely payment of rent ensures seamless management of the properties. However, the conventional or offline payment system is a lengthy and time-consuming process. Thus, it creates a lot of hassle and confusion between the tenants and landlords.
A few disadvantages of the offline payment system (both landlords and tenants) are as follows:
- The current offline payment system is a lengthy and time-consuming process.
- The chances of the cash or check getting lost or stolen are higher
- A lot of manual tasks are involved, such as:
- Withdrawing cash or issuing a check
- Sending the rent (cash or check) to the landlord in person or by mail
- Depositing the cash or check into the landlord’s account
- Cash and checks must be withdrawn, issued, or deposited at a specific time, which slows the entire process.
Benefits of Contactless Rental Payments
Online payments have simplified the process of paying and receiving rent, thus giving a breather to both landlords and tenants.
Following are a few major benefits of using contactless rental payments:
Convenient and Easy to Use
Online rent payment apps offer the utmost convenience to both landlords and tenants. Handling cash or checks and maintaining manual rent records is a tedious process for landlords. Through online payment portals, paying and receiving rent becomes easy and fast. With such smart rental transactions and user-friendly apps, landlords can efficiently manage several properties.
Similarly, tenants can use online rental payments to simplify and expedite their tasks as well. They can directly pay the rent from any mobile device or laptop. All they have to do is download the service provider app on their device and get it configured using a login ID and password. It eliminates the hassles of cash withdrawals or issuing checks, thus saving enough time.
Optimum Security and Safety
Handling physical cash or checks can be risky for both landlords and tenants. Mishaps can happen anytime and anywhere due to negligence or crime. Online payment portals offer optimum security through dynamic encryption technology. It safeguards sensitive financial data and reduces the risk of fraud.
Usually, when a tenant pays rent online, the money is directly transferred to a specified account, in this case, the landlord’s. This streamlined process minimises the likelihood of mishandling or misdeeds and fosters a reliable and secure environment for both tenants and landlords throughout the entire rental transaction.
Better Financial Management
The payment portals are integrated with features that help record and organise financial records. Contactless payments help landlords streamline payment tracking. They can even generate automated payment histories and reports effortlessly. Besides saving time, it provides a holistic and structured outline of the financial condition of all the properties.
The online payment apps offer recurring payment schedules and 24/7 service. It allows tenants to pay rent at any time from any location, reducing the chances of late payments and plausible disputes with landlords.
Timely and consistent rental payments allow both parties to manage expenses and cash flows in a better way. Landlords can plan property maintenance expenses like paying property taxes and other bills. Whereas, tenants can live a stress-free life by paying timely rents without paying extra money as late payment fees.
Types of Contactless Rental Payments
Paying rent with cash or a check is becoming outdated in this digital era. People are more comfortable using online rent payment modes. Apart from being streamlined, they are faster and simpler options.
Below are some of the popular types of contactless rental payment methods:
Mobile Payment Apps
Mobile payment apps have become the norm these days. They are an omnichannel money transfer source that helps with a gamut of day-to-day financial transaction tasks.
With a quick download and configuration of the app with their respective bank accounts, the entire payment process becomes swift and hassle-free. Instantly paying monthly rent has never been more accessible.
One of the key advantages of employing a mobile payment app lies in its ability to facilitate seamless money transfers on the go, provided the devices are connected. This eliminates the chances of being a payment defaulter, regardless of busy work schedules or any other emergency. Furthermore, they can keep track of all the payments and set a rent reminder for timely payments.
Online Payment Platforms
The digital era marked the advent of contactless or digital payments in different sectors, one of which was real estate. Both tenants and landlords have started adopting various contactless rental payment options to simplify their tasks.
Online rental payment portals like NoBroker, Housing, or CRED are among them. These third-party platforms offer seamless and timely rent-paying options from anywhere and at any time.
Paying rent through online portals is easy and prompt. Users can download an app or visit the website to pay their monthly rent. Also, user details, landlord’s bank details, property details, etc., would be needed. Tenants can use credit cards, debit cards, or UPI payment modes to pay the rent.
Conclusion
Digitalisation and smart devices revolutionised the online payment structure in India in the last few years. This shift promises a seamless online payment experience, providing users with enhanced security, unmatched convenience, and rapid transactions.
To enjoy a relaxed and automated online rental payment experience, you can use an appropriate payment solution like Plural Links. Plural Links helps landlords to collect rent across multiple properties in a streamlined manner. Simply send custom payment links at the click of a button and watch the payments pour in! Additionally, with our Affordability Suite, you can offer affordable ways to pay rent or lease such as EMIs and partial payments.
For more information on contactless online rental payments, write to us at pgsupport@pinelabs.com today or simply click below to express your interest.
Plural by Pine Labs has received an in-principle authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator.
