Rent.com.au Limited (ASX:RNT) is a purpose-led company seeking to empower home renters through their rental profile, rental bond and payments and through a growing number of aligned transactional services. The company has announced that it has entered into an agreement with SkyCredit Pty Ltd to provide a SafetyNet facility to digital wallets that will allow renters to draw down one week’s rent in an emergency. The SafetyNet facility is designed to help alleviate financial pressure on renters and maintain their payment record. SkyCredit is the parent company of Fair Go Finance, Rent.com.au’s finance provider for RentBond. The company noted that as a result of putting this agreement in place, the launch date for RentPay had been pushed out 4-6 weeks. The company previously had flagged the end of Q3 FY21 for the launch. We anticipate it will now be mid-Q4 FY21, however it is worth noting that we have factored in little by way of revenue from RentPay in FY21. As we flagged in our recent initiation report, we view RentPay as a transformative initiative for Rent.com.au, giving the company an opportunity to extend its relationship with renters into the rental tenancy period and beyond with transactional products such as telecoms, loans and finance products. Our base case valuation of $0.35/share is unchanged.
22 Mar 2021
New RentPay SafetyNet facility in place, launch in Q4
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
New RentPay SafetyNet facility in place, launch in Q4
Rent.com.au Ltd (RNT:ASX) | 0 0 0.0% | Mkt Cap: 14.0m
- Published:
22 Mar 2021 -
Author:
Finola Burke -
Pages:
5
Rent.com.au Limited (ASX:RNT) is a purpose-led company seeking to empower home renters through their rental profile, rental bond and payments and through a growing number of aligned transactional services. The company has announced that it has entered into an agreement with SkyCredit Pty Ltd to provide a SafetyNet facility to digital wallets that will allow renters to draw down one week’s rent in an emergency. The SafetyNet facility is designed to help alleviate financial pressure on renters and maintain their payment record. SkyCredit is the parent company of Fair Go Finance, Rent.com.au’s finance provider for RentBond. The company noted that as a result of putting this agreement in place, the launch date for RentPay had been pushed out 4-6 weeks. The company previously had flagged the end of Q3 FY21 for the launch. We anticipate it will now be mid-Q4 FY21, however it is worth noting that we have factored in little by way of revenue from RentPay in FY21. As we flagged in our recent initiation report, we view RentPay as a transformative initiative for Rent.com.au, giving the company an opportunity to extend its relationship with renters into the rental tenancy period and beyond with transactional products such as telecoms, loans and finance products. Our base case valuation of $0.35/share is unchanged.