PayProp has created a whole new market in the payment aggregation space and become accepted as a proven payment automation platform.
Traditionally, rental (and other high-value recurring transactions) are processed in piecemeal fashion by the banking sector, using normal cash management services for a unique payment ecosystem encompassing property managers, which act as service providers for a trusted network of consumers (owners, tenants and contractors). In just a few years, these same clients have closed their accounts held at traditional banks and opened PayProp accounts, which can better be described as ring-fenced wallets in which the tenant, owner, property manager, and any other connected third party, transact.
Payments without the pain
PayProp is not software, but a cloud-based payment platform. This architectural difference gives property managers access to leading-edge payment functionality without the headache of owning a system.
This is especially suited to property management organizations, which are typically distributed franchises operating as autonomous small or medium-sized enterprises. They don’t want the worry and cost of software license fees, hardware ownership, upgrades and maintenance that come with owning a system. With PayProp they will always have the latest and greatest in functionality, and business continuity is assured as the platform is hosted within a fully redundant data center with ironclad 256-bit encryption.
PayProp is causing a stir in the market with its streamlined payments – a software engineering and partnering feat and a significant improvement on all traditional and latter-day alternatives, including the banking system, low-end app-based payment software and high-end enterprise systems.
There are countless apps that tack onto banks’ generic collection and payment engines, but at most they offer one-to-one payments in various time-consuming and error-prone steps. At the high end of the spectrum, a small number of global property management companies have the doubtful privilege of commissioning hugely expensive enterprise software projects that still require customization for making payments.
For the multitude in-between, PayProp provides many-to-many settlement functionality within the real-time banking environment. This unique level of integration enables automation of the property transaction life cycle and embedding of property-specific payment rules, while eliminating the back-office inefficiencies of multi-stage payment verification, as well as costly delays and high fees.
As payment aggregator, PayProp solves a universal problem faced by all property managers who handle client monies: PayProp consolidates a fragmented market, beset by great inefficiencies, and makes it easier for consumers to transact within it. In addition, PayProp users gain access to analytical and marketing tools to help them grow their businesses.
PayProp’s strong bank ties allow it to offer a closed, trusted environment for managing payments, which protects landlords, tenants and agents. The first thing PayProp clients do on signing with us is to close their rental processing bank account and opening up a PayProp trust account instead. Importantly, they do not have personal transaction access to it. As a result, PayProp can offer more than normal rental management software: it doesn’t simply reconcile payments between tenants, landlords and service providers on a rental management system, it reconciles payments with clients’ bank accounts. And it does so automatically.
This is what sets the PayProp payment platform apart from competitors in various markets – a unique and necessary differentiator as the property letting market evolves. Historically, while the industry is well-regulated, there is no obligation on agents to have proper payment processing systems in place that protect the client’s interests. This is fast becoming a dangerously antiquated state of affairs and will in time come under scrutiny. In essence, many agencies are the equivalent of small banks, receiving and managing millions in client money. Using a system like PayProp can greatly improve the standing and sustainability of this economically vital industry sector.
PayProp, co-founded by brothers Johannes and Jaco van Eeden in 2004, is part of the GivenGain Group, an international company with subsidiaries in the United Kingdom, Switzerland and South Africa. The call for automated, trusted payments is becoming increasingly global, as rentals are on the increase. Additionally, consumer protection legislation reinforce the realization that tenants require certainty that their single most important monthly payment will reach landlords on time and safely. Only by using a system like PayProp can agencies properly meet their obligation towards their clients.