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Among the hardships some consumers are bearing these days, rent payments can loom large. This week, a housing-payments startup called Xspaced and payments provider Dwolla Inc. launched a feature that allows tenants to split rent payments into anywhere from two to four installments each month without accruing interest. Landlords still get paid monthly with the new feature, which Oakland, Calif.-based Xspaced likens to a “subscription plan.”
The feature, called FlexRent, is part of a Web-based application Xspaced, which began operations earlier this year, offers to both tenants and landlords. Information on how many users the app has attracted so far was not immediately available. The company positions the new feature as a direct response to financial hardship many renters may have experienced because of shutdowns and other measures aimed at controlling the spread of Covid-19.
“Our team is excited to provide this service at a time when rent payments are challenging for millions of Americans,” Alex Pelin, cofounder at Xspaced, said in a statement. “FlexRent will have a positive impact on renters’ ability to make timely rent payments during the current pandemic, curb the growth of consumer debt and bring renters one step closer to financial wellness.”
Responding to queries from Digital Transactions News, Pelin stresses speed and simplicity. “Any landlord or renter that wants to have more rent payment flexibility can just create an account and start using it,” he says by email. “There is no need to install an app or any technology and setting up a payment plan takes less than [one] minute.” He adds Xspaced has users across the country.
Des Moines, Iowa-based Dwolla, which specializes in application programming interfaces for digital payments, cites a similar motivation. “For so long, we’ve looked at making a rent payment as just that, a single payment. But with the advancements of fintech, renters of all socioeconomic statuses can align their rent with the cadence of their income,” says Dwolla chief executive Brady Harris, in a statement. “We’re proud to associate ourselves with FlexRent and this incredible initiative.”
Formerly an executive with merchant processor Payscape, Harris in March succeeded Dwolla founder Ben Milne as CEO. Milne stayed with the company as an advisor and board member.
