Housing.com announced the launch of the industry's first Rent Now Pay Later (RNPL) service in partnership with Bengaluru-based embedded finance start-up, Niro. This innovative credit solution offers customers the ability to pay their rent on credit. Now, rent can be paid on Housing.com by users with a zero-convenience fee, an interest-free credit period of up to 40 days, as well as an option to convert rent payments into easy monthly installments (EMIs).
Thus far, Housing.com has provided users with the ability to pay rent using credit cards. However, given that only 4% of Indians have credit cards, the RNPL service affords non-carded users a significant flexibility in their financial planning - allowing them to pay their rent at zero cost and freeing up a significant portion of their disposable income for other items. The RNPL service further provides users with the option to upgrade their credit limit to be able to draw down cash for a variety of use cases, taking advantage of instant, low-interest rate loans.
Housing.com and Niro accomplished a successful pre-launch phase by extending offers to nearly 100,000 users. The first rental payment involves zero convenience or service fee, and users can choose to upgrade their credit limit upto 3 lakhs.
Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com & Makaan.com, expressed his optimism regarding the future of digital payments in India, stating, “India has become a trailblazer in the world of digital payments and we anticipate that services like Rent Now Pay Later (RNPL) will only continue to gain traction. This solution will bring genuine empowerment to millions of customers who desire to rent properties using credit but are often hindered by the lack of traditional instruments.”
Agarwala further added, “The trend of Buy Now Pay Later (BNPL) services has been growing globally, with companies such as Klarna, Afterpay, and Affirm leading the way. These services provide consumers with the ability to make purchases without having to pay upfront, allowing them to pay in instalments over time. The BNPL model has proven to be successful in various industries, from fashion to home goods, and now Housing.com is pioneering its use in the real estate sector in India”.
Commenting on the launch, Aditya Kumar, Co-founder & CEO, Niro said “We are excited about our collaboration with Housing.com to enable India’s first ‘Rent Now, Pay Later’ product for Housing’s customers. At Niro, we are constantly striving to create innovative credit solutions for consumer internet platforms. Through our joint efforts, we have been able to truly revolutionise the way people think about rental payments in India. Housing.com and Niro are both well-positioned to tap into the potential of this growing market and make a meaningful mark in the industry.”
Sangeet Aggarwal – Head of Product & Design, Housing.com, said, “Housing.com is truly leading the way by embracing the BNPL model in the real estate sector. Our collaboration with Niro will be instrumental in driving this highly-promising innovation to our user base.”
Sangeet Aggarwal further added, “As the digital landscape in India continues to evolve, BNPL services are becoming a popular alternative to traditional payment methods. The country's massive, connected internet user base of nearly 800 million people, as per recent government data, presents a vast market for BNPL services. The low credit card penetration and high rental costs in India make BNPL a compelling option for consumers, offering greater financial control and flexibility. BNPL is a growing trend worldwide, and India is poised to become a major player in this segment. Companies like Housing.com and Niro have a unique opportunity to make a lasting impact in the BNPL industry and shape the future of digital payments in India.”
