More than half of tenants are now opting for open banking rather than traditional bank transfers when it comes to paying rent as demand for faster, more secure and more convenient digital payment solutions grows, latest research from LettsPay reveals.
And the move towards open banking isn’t just benefitting tenants, it’s also transforming the way letting agents manage payments.
When tenants pay via open banking, funds are automatically reconciled in real-time, reducing administrative workload and ensuring landlords receive their payments promptly.
This streamlined approach not only minimises errors but also significantly reduces the risk of overdue payments and arrears.
IMPROVED CASH FLOW
By removing friction from the payment process and automating reconciliation, open banking helps ensure that rent is paid on time, improving cash flow for landlords and reducing the burden on agents chasing late payments.
Matthew Gibbard (main picture), LettsPay Commercial Director, says: “As the rental industry continues to modernise, the adoption of open banking is a clear indicator that tenants and agents alike are embracing financial technology that enhances efficiency, transparency, and financial stability.
“With automation playing an increasingly crucial role in property management, this shift marks a turning point in how rental payments are processed in the UK.
“Improving both the speed and efficiency of client accounting is core to the Lettspay proposition and enables time and resources in a lettings and property management businesses to be channelled into the delivery of improved services and business growth.”
