Rent Pay as Feature is destroying India

• 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 ?!