There has been a significant shift in the way tenants are paying their rent, with over 50% now opting for open banking rather than traditional bank transfers, according to LettsPay.
The company says that this trend found in its latest research demonstrates a growing appetite for faster, more secure, and more convenient digital payment solutions in the rental sector.
The move towards open banking is not just benefitting tenants, it is also transforming the way letting agents manage payments, LettPay claims.
When tenants pay via open banking, funds are automatically reconciled in real-time, reducing administrative workload and ensuring landlords receive their payments promptly.
By removing friction from the payment process and automating reconciliation, open banking aims to help ensure that rent is paid on time.
LettsPay commercial director, Matthew Gibbard, said: “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.”
