- Fupay Chief Revenue Officer Betsy Westcott
Fupay Chief Revenue Officer Betsy Westcott
Source: Fupay
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  • Buy now, pay later (BNPL) app Fupay has launched “Australia’s first responsible lending rent payment product” aimed at millenials and zoomers
  • The product aims to help those who fit the company’s lending criteria by “spotting” them cash to pay their rent on time and avoid falling into arrears
  • To be eligible for the program, customers need to link their bank account details so Fupay can test their eligibility and decide if the customer would be able to afford the loan
  • Landlords or real estate agents who have customers sign up for the product will receive a referral fee based on the total value of the transaction
  • The company says 34 per cent of respondents in a survey conducted use BNPL to pay their rent

Buy now, pay later (BNPL) app Fupay has launched “Australia’s first responsible lending rent payment product” aimed at millenials and Gen-Z, or zoomers.

The fintech product aims to help those who fit the company’s lending criteria, by “spotting” them cash to pay their rent on time and avoid falling into arrears.

Star Partners was announced as the first real estate company to offer the Fu Rent platform to their tenants.

Fu Rent will have a max value of $1000 and is to be paid back over a period of eight weeks.

To be eligible for the program, customers need to link their bank account details so Fupay can test their eligibility and decide if the customer would be able to afford the loan.

The company said it lent only to those who have regular income deposits, positive financial behaviours and those deemed likely to pay the loan back.

Fupay chief revenue officer Betsy Westcott said that unlike other BNPL products, Fu Rent had a connection to a customer’s bank account and transition data, which helped the company understand if a customer was likely to pay back the loan on time.

“Because we have all their banking data and we know when the income is coming in, we actually calibrate the repayment plans in that eight-week period to line collection around when they have the most cash flow,” she said. “This ensures we get paid back, but also that when we are collecting, we are collecting at the optimal time for the customer as well.”

Westcott said in a survey it undertook, 34 per cent of respondents said they would use a BNPL product to pay their rent, but she said the aim wasn’t for it to be an ongoing situation.

“If it became an ongoing problem, we could see that customer spiralling, we would probably revoke their eligibility,” she said. “It is really intended to be a very occasional product for them to use.”

“We’ve all experienced those tough months when all your major bills arrive at once and cash is suddenly very short. Fu Rent helps customers to create some payment flexibility around their rent so they can enjoy some short term cash flow relief whilst ensuring their most important bills are paid on time.”

She said it was a win-win situation for both tenants and landlords.

“As the tenants aren’t defaulting, it reduces all that administration and effort that can go with a one-time default,” Westcott said.

Landlords or real estate agents who have customers sign up for the product will receive a referral fee based on the total value of the transaction.

The company launched its app in November 2020 after a Series A capital raise in July 2020 and now boasts more than 100,000 customers.

Using the BNPL features incurs a fee of 5 per cent of any amount transacted. The company promises to never charge account keeping fees or interest.

Research from ASIC has shown that 21 per cent of BNPL users have missed a payment, with 20 per cent cutting back or going without essentials, including meals, as a result of overspending on these platforms.

Ms Westcott said Fupay aimed to avoid this as it didn’t want to lend to individuals in financial hardship or those unlikely to pay back their loans.

“We are not trying to create a lending product for those who are in financial hardship, it is really focussing on those who have the money but just need some flexibility,” she said.

“We don’t want to put anyone into bad debt cycles- that is not what we are about.”

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