Rent Pay as Feature is destroying India

GroovyPanda · 2024-05-15T20:37:57.580776+05:30

- Fintechs is leveraging Rentpay as feature and the segment is literally booming in both TopLine & BottomLine. Basically Cashing out Credit. Example - Cheq, Cred, Housing, RentGiraffe, BharatNxt(business payments), Freecharge, nobroker etc., - Heard that the Revenues through likes of Rent-pay as a feature in Fintechs is Contributing around 10-40%+ - This is a Grey space. This vertical is turning as positive contribution to the bottom line. - To put things in perspective - Cheq does XXX crores(triple digit) volumes in Rent payments monthly through CC. - Many making around ~30-40 Basis points post all the processing costs. - Also, Some Credit cards underwriters (example - RBL) have started charging additionally 1% surcharge in the Monthly Bill Statement. - Most of Credit Card issuers removed reward points in this kind of cashing out payments. - Below picture show how this segment of Grey Space is booming on the streets. This picture is taken in Koramanagala Any Thoughts ?!

Fintechs is leveraging Rentpay as feature and the segment is literally booming in both TopLine & BottomLine. Basically Cashing out Credit. Example - Cheq, Cred, Housing, RentGiraffe, BharatNxt(business payments), Freecharge, nobroker etc.,
Heard that the Revenues through likes of Rent-pay as a feature in Fintechs is Contributing around 10-40%+
This is a Grey space. This vertical is turning as positive contribution to the bottom line.
To put things in perspective - Cheq does XXX crores(triple digit) volumes in Rent payments monthly through CC.
Many making around ~30-40 Basis points post all the processing costs.
Also, Some Credit cards underwriters (example - RBL) have started charging additionally 1% surcharge in the Monthly Bill Statement.
Most of Credit Card issuers removed reward points in this kind of cashing out payments.
Below picture show how this segment of Grey Space is booming on the streets. This picture is taken in Koramanagala

Any Thoughts ?!

10mo ago

Talking product sense with Ridhi

9 min AI interview5 questions

ZestyNugget

Zomato10mo

Your landlord taking online payments?

taking out cash from ATM every month

GroovyPanda

Student10mo

Landlords does both - need some cash & some online. They have their own way of evading taxes.

GoofyLlama

PayTM10mo

Does your landlord take money in their account? I have seen my landlord giving driver/ house helper/ etc accounts to save tax and always prefer cash.

GroovyBoba

X (formerly Twitter)10mo

I'm sorry but why do I need another app just to pay rent and not just gpay my landlord every month?

GroovyPanda

Student10mo

People are paying through credit card, for rewards or extra credit etc., This does not happen with everyone though

SnoozyKoala

PayTM10mo

There has been so much reward points abuse here Credit card companies were taken by a storm due to the abuse and later on they built in controls for the mcc for rent payment. However, there are merchants offering cash out like the image above where mcc is different; they take commision from the user and pay MDR to the aggregator. Due to large volumes they are able to negotiate MDR with the aggregator and mcc like grocery or something else helps get reward points for abuse and cash out.

SnoozyDumpling

PayU10mo

How is this even in the grey area. It's like withdrawing cash using credit card! RBI should've come crashing down on it. Rent pay by companies is like that child who pokes a cat only to see what happens and we what happens is the cat gives a tight slap and scratch leaving the kid devastated.

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