Rent.com.au Limited (ASX: RNT) has signed formal agreements to partner with software technology, utility billing, and payment services provider Novatti Group Limited (ASX:NOV) to deliver the payments technology to power RentPay, Rent.com.au’s “next generation” rental payments solution.
The agreements comprise a Subscription Agreement and a Software as a Service agreement.
Key highlights of the partnership are:
- 36-month SaaS Agreement with Novatti to build and operate payments backend.
- Novatti’s payments scale and potential banking capability allow for compelling customer offer.
- Key features/functionality agreed and documented in Statement of Work.
- Equity stake in RentPay aligns Novatti and Rent.com.au interests.
- Agreements cement RentPay’s pre-launch valuation of $10 million.
Novatti have been very easy to work with thus far and we’ve been impressed by the breadth of experience and the enthusiasm they bring to the new RentPay. This is just the type of partnership that we need to develop RentPay into a key product in the rental market in Australia,” said Rent.com.au CEO, Greg Bader.
“Rent.com.au will continue to majority own and operate RentPay, focussing on Rent.com.au’s key strengths of user experience, renter engagement and marketing while the technical and compliance aspects will be provided to RentPay by Novatti via the SaaS Agreement.
“As we’ve worked with Novatti to formalise the agreements and drill down to the next level of detail on our plans for RentPay over the past month, it’s become ever clearer that we’ve selected the right partner and, with Novatti having an equity interest in RentPay, both parties will benefit from the alignment that level of partnership brings,” Mr Bader said.
“Novatti brings a level of knowledge and scale that we lack, and with the potential for them to be granted a banking licence in the near future, the partnership introduces a further range of product possibilities that can be introduced once we’ve relaunched RentPay later in FY2020”.
Peter Cook, the CEO of Novatti, said that partnering with Rent.com.au to redevelop RentPay is a great example of providing products that allow customers to thrive in today’s increasingly cashless economy, while also providing Novatti with exposure to the enormous rental payments market.
rent.com.au is an Australian website dedicated to rental property, with highly rated real estate apps, unique content and features attracting well over 600,000 unique visitors to its website and apps per month.