ASX-listed PropTech Group (ASX: PTG) has enlisted the support of fintech startups to build a buy now pay later (BNPL) real estate play.
The joint venture project, called PropPay, is a payments platform that will allow real estate agents and third-party platforms to offer payments and solutions to their customers for property-related services in Australia and New Zealand
The deal with SME-focused payments fintech FlipPay, Hong Kong-based financial services company BC Investment Group Australia and cashflow financing fintech Convini.
Under a non-binding agreement for the project PropTech Group will have a 20% stake in PropPay, with the right to earn in additional equity based on its ongoing revenue contribution performance. PTG, FlipPay and BC will have the right to appoint one director to the PropPay board.
The JV will provide the real estate industry in Australia and New Zealand with card and online payments via an API, including BNPL options.
PTG CEO Joe Hanna, said PropPay’s aim is to bridge the gap between proptech and fintech by providing the payments and BNPL technology for real estate agents and simplify the payment experience when buying, selling, or renting.
“Our clients are telling us that they need access to payment options that will enable them to transact quicker, provide a better user experience and allow them to offer clients access to funds throughout the selling and rental process,” he said.
“PropPay does just that and enables real estate agents to provide funding for services common in any real estate transaction, including vendor paid advertising and property styling required to make a property ready for sale or rental, plus the early payment of commissions to agents.”
FlipPay offers white-label payments architecture, including for BNPL.
CEO and co-founder Fidaa Haddad said the PropPay platform will offer deep integrations into CRM platforms, property management, selling middleware and direct in terms of hierarchy.
Convini’s Cameron Adams has been charged with e day-to-day operations for PropPay and building out the team to deliver market share, initially in Australia and then New Zealand.
“There is huge potential for PropPay’s offering” he said.
“We see online payments and deep, well thought out integrations with third-party property platforms as a significant game changer for real estate services.”
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