More and more software platforms are beginning to see that holding on to legacy tech can be costly. In fact, moving away from siloed legacy disparate systems in your property management tech stack might be the wisest decision you ever make. And that is why integrated payment technology is making a big splash.
Integrated payment technology is showing up everywhere, including in our favourite ( or not so favourite) social media platform. There's an excellent reason Twitter announced plans to mix in payments to its offering. Today every company is a payments company, no matter the product or service. For instance, according to PYMNTS research, 9 out of 10 SaaS firms are integrating payments into their existing accounts payable systems.
Every day, about 30 million financial transactions occur in Canada, ranging from a few cents to millions of dollars, adding up to $210 billion every day. And $9.5 billion of that belongs to the property management sector.
Meanwhile, burdened with legacy, Canadian businesses spend somewhere in the neighbourhood of $6.5 billion to process these payments. In other words, inefficient payment operations have trapped billions of dollars in an uneconomical traditional payment process.
As the digital economy expands and consumers' demand for seamless payments increases, integrated payment technology solutions have become an increasingly attractive way for property management software to gain the upper hand.
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Property management is rife with late payments, remittance data processing, and tenant payment method mismatches. It boggles the mind that tenants, landlords and property management companies might still be writing paper cheques.
One of the biggest challenges faced by software customers is the payment process. From start to finish, property management companies find it ambiguous at best and labour-intensive, to say the least. Navigating multiple platforms to collect rent, manage invoices, and track transactions lead to a fragmented experience and increased chances for errors.
The industry's friction and frustration around traditional payment processing drains resources and time. Legacy payment systems, built years ago, need to catch up with modern technologies and current customer needs. They lack resilience, are incompatible with popular payment methods, and pose the risk of exposing customers to various security risks.
"Ten years from now, we will look back at the incredible payments innovations that happened in 2023 and say, "Wow." Many of them may not register high on the hype meter, but they will significantly shape an ever-more connected and accessible digital economy."
Manual data entry and the reconciliation process of traditional payment methods are major obstacles to efficient business transactions. These obstacles hold cash flow hostage behind impenetrable walls, making it inaccessible to vendors and senders alike. When we think about it like this, only then can we understand how much of a drain these transactions pose and why property management software platforms need to deliver the fix.
As the payment industry changes, software platforms need to be aware of all the ways payments are delivered to customers. Understanding newer delivery models can significantly benefit these platforms as they plan for the future. Embedded payments, faster payment rails, and traceability allow property management businesses to make better decisions, from acquiring funding to paying out and cash flow. Equally important, it will enable merchants to meet the rising demand for better recipient experiences when collecting rent payments.
Payments have become a valuable tool across every industry, and payment partnerships are cropping up in some unexpected fashions, i.e. TikTok and JP Morgan.
The trend is clear: By 2030, non-financial services players will conduct 74% of digital consumer payments. Will your property management platform be one of them?
By partnering with a third-party payment processor, property management solutions can gain expertise in different forms of payments without having to develop the knowledge in-house.
By partnering with an external specialist, companies shift the responsibility for onboarding and customer relationship management onto the payment partner.
With the increasing demand for financial services such as payments embedded into the customer journey, it has become increasingly important for software companies to address this need. Integrating payments directly into your software stack will deliver a more comprehensive solution to customers and eliminate the need to switch between multiple platforms to manage their financial transactions.
Payment digitization is revamping financial services and every industry it touches. A renter accepts a request for money for the funds owed from the landlord, and the funds are now available in the landlord's bank account. Sounds simple, doesn't it? — That's because it is.
Property managers expect new payment technologies that leverage the power of data, automation and analytics embedded into their software solution to deliver a better customer experience, enhance FTE productivity and put more money on their bottom line.
It's the most intelligent way for your property management platform to become a fintech. With VoPay's Fintech-as-a-Service, discover how easy it is to integrate new payment technology into your stack.
With VoPay payments PropTechs can:
Verify users' identities and authenticate bank accounts prior to the transaction. Reduce NSF fees by having visibility into bank accounts' available funds.
VoPay natively provides sub-accounts for each property to ensure funds are not commingled.
VoPay covers all alternative payment rails, including real-time payments through one API for a best-in-class embedded experience.
Offer bundled payment products and new services for additional value and revenue.
Offer robust end-to-end payment processing solutions, including Open Banking payment technology, multi-channel payment rails, bank account verification and real-time payments.
We have a complete suite of financial products to suit your use case. Speak to one of our FinTech Advisors today!